Insurers must embrace emerging technologies and offer “hyper-personalised” experiences to attract and retain customers following COVID-19, and new report from Capgemini claims.
The consultancy firm's World Insurance Report 2021 explains how more than 60% of insurers surveyed recently have seen their customer acquisition efforts affected by COVID-19, with customer retention also being impacted for around 40%.
To make up lost ground, the report argues that companies must empower their distribution network with emerging technologies, including augmented, virtual reality and AI, and embed insurance in customers’ daily lives by embracing open insurance.
Although 87% of insurers surveyed said they would invest in digital enhancements, only 32% were confident that their digital channels are effective in securing sales because they lack personalised advice capabilities.
“Insurers have an opportunity to convert digital traffic to sales by focusing on a hyper-personalised virtual experience,” said Anirban Bose, CEO of Capgemini’s financial services.
“Today’s customers expect interacting with their insurers to be easy, and providers need to ensure their channels enable a convenient and seamless customer experience.
“By investing in the right technologies, insurers can win and retain customers while empowering their agents and brokers to deepen relationships.”
The report highlights how 77% of insurance executives see agents and brokers as their most prominent distribution channel, however, more than 40% of personal line customers find it challenging to contact agents and brokers outside typical office hours.
Capgemini said that the most successful insurers will win and retain customers by reinventing their operating ecosystem to support a ‘phygital’ model based on a mix of physical presence and digital engagement.
Around half of the agents and brokers surveyed said they need more support from insurers, and that digital collaboration and engagement tools such as screen-sharing platforms and digital document-signing tools are needed to assist customers.
However, less than two-thirds of insurers said they provide agents and brokers with these sought-after digital tools to enhance customer experience.
The report argues that AI-based analytics can help agents and brokers understand customer preferences, answer questions, and offer appropriate products around policyholders’ special life events, giving a “360-degree view” of customers to improve their experiences.
“The global impact of all-at-once digital adoption has changed the way insurers need to operate to satisfy their customers,” said John Berry, CEO of Efma, which co-produced the report. “Digital investment in connected channels is a critical ingredient for insurers of the future to be successful.”
Image credit: iStock
Author: Chris Seekings