As many insurers struggle to get closer to their customers, top-performing companies offer insights to turn customer centric ambitions into reality.
While insurance CEOs are well aware that their organization’s survival depends on their ability to reorient their business around the customer, few feel they have made the necessary progress towards becoming truly customer centric, according to KPMG’s 2017 CEO Outlook.
A great deal of money, time and effort has been invested into various transformation initiatives and technologies but, at the end of the day, most insurers have achieved only incremental improvements in their customer propositions and relationships.
This lack of progress stems from a general reluctance on the part of traditional insurers to make fundamental changes in their business models, likely due to the sheer complexity of the task. Indeed, becoming customer centric requires a new vision, insights, cultures and partnerships that put the customer at the core of the business. For most insurance organizations, this will mean radical change throughout the business and ecosystem.
Although insurance CEOs seem very keen to get closer to their customers, this requires them to have the right insights about their customers and the capability to do something valuable with those insights. For most traditional insurers, that will mean finding a way to succeed despite their legacy technology environments and disaggregated customer data silos. Customer analytics is a very powerful way of harnessing this insight, yet only 8 percent of insurers say they are using analytics to identify customer preferences.
While KPMG member firms' experience working with organizations across the globe suggests that a handful of insurers are already making significant progress towards building a unique and valuable customer experience, our interviews with consumers last year reveals that most continue to disappoint. Insurers will need to move quickly to change their business models and build their capabilities, or risk the demise of their business.