Customer Focus

Insurance - Valued Insurer - Customer Focus

Changing preferences of the next generation of insurance customers demand fresh new thinking to the way the insurance industry distributes products and services.

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Valued insurers are transforming how they do business, placing their customers at the heart of everything they do, from strategic decision-making, business and operational model design, to product development, service and delivery. A clear customer action plan is required.

In an environment where competition is becoming ever more intense, it will become increasingly important for insurers to:

  • develop differentiated propositions targeted at particular market segments
  • focus on improving persistency to reduce pressure on business volumes
  • differentiate brands through enhanced customer service, and thus
  • derive maximum value for customers.

Challenges faced by insurers in achieving customer focus

  • using customer insight to differentiate in an increasingly commoditized market
  • understanding customer’s actual and perceived needs and emotional behaviors
  • fragmented operating model, legacy systems with poor quality customer data
  • managing impact of social media – bad news going viral at incredible speeds
  • new competitors such as aggregators
  • impact of regulation, particularly on advised channels
  • poor online sales conversion
  • regulation impacting key pricing data points
  • customer-facing staff not delivering a consistently great customer experience.

Four ways to overcome these challenges

Mine data to unearth meaningful customer insights:

In a digital world, the mass of information available to insurers is a valuable new asset. The Valued Insurer connects internal and external data to create value and gain competitive advantage. With greater customer insight, insurers can make more informed decisions about the design and delivery of propositions and services oriented around their customers.

Optimize channels to reflect customer demands and maximize efficiency:

As customer preferences for self- serve and advisory channels change, along with new regulations and technologies, opportunities arise for insurers to differentiate themselves. The Valued Insurer seeks to optimize its distribution channels, achieving the right mix for different customer segments, at the same time providing better customer experience.

Manage volatility and win investor trust:

As the insurance industry grapples with costly regulatory and capital requirements and challenging market conditions, insurers must chart ways to achieve profitable growth, manage volatility and communicate how they add value. The Valued Insurer employs strategic decision-making that balances near- and long-term priorities, while establishing meaningful goals and metrics that clearly connect strategy and performance for shareholders and communicate the volatility inherent in its results.

Empower employees to respond to unfolding opportunities:

Regardless of industry, successful organizations are those with the agility to strategically and tactically outmaneuver competitors. Agile organizations are best placed to respond to and capitalize on opportunities and react to threats. Employees are the primary touch points to achieve this. The Valued Insurer gives its employees the right tools and mind-set to place customer needs at the heart of all business interactions.

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