World Insurance Report 2014 from Capgemini and Efma finds digital maturity is strongly correlated to profitability and efficiency.
Featuring data from over 15,000 customers worldwide and nearly 100 insurance executive surveys, the World Insurance Report 2014 from Capgemini and Efma reveals enhancing customer experience has a direct impact on insurers’ profitability. Given the increasing demand of internet and mobile channels in insurance, digital transformation is an effective approach to create positive experiences, secure customer loyalty, and ultimately improve insurers’ profitability.
Press Release: The World Insurance Report 2014 finds insurers profitability rests with improving customer experience via digital transformation; report reveals digital channels, especially mobile, offer greatest opportunities to impact profitability and customer retention.
Customer experience has a direct impact on insurer profitability finds this year’s World Insurance Report 2014.
While insurers are striving to enhance customer experiences, the improvement in ratings has been slow at just 2% globally with nearly 70% of customers still at risk of switching carriers. Other findings:
- Insurers had generally higher profits in 2012 thanks to over a 30% decrease in claims payouts associated with fewer natural disasters or weather events. Find out why it turned out to be a good year for insurers.
- Only 32% of global insurance customers said they had positive customer experiences with their insurer. The U.S. leads the globe with over 50% of insurance customers citing positive customer experiences with their insurer. Find out what country came in second place.
- Discover the best and worst performers in customer experience in this year’s report.
- Capgemini’s Customer Experience Index (CEI) for Insurance found a clear link between improved customer experiences and profitable customer behaviors. Find out which channel has a heightened impact on profitable customer behaviors.
Impact of Internet-Mobile
Internet-mobile holds a strong potential to move customers to more profitable behaviors. While internet-mobile is the least likely of all the channels to offer a positive experience, it has an outsized impact when it does.
Customers having a positive experience via internet-mobile are the most likely, compared to all the other channels, to refer friends. They are also the most likely to buy additional products. These findings indicate internet-mobile holds the greatest potential to move customers toward more profitable behavior. Insurers with insight into the specific actions necessary to create positive experiences via the internet-mobile channel will be the ones most likely to benefit.
Importance of Digital
Digital transformation coupled with operational excellence is the way forward for insurers aiming to boost both customer experience and bottom line growth.
Digital maturity is strongly correlated to profitability and efficiency. Firms with a strong digital presence and customer focus are 26% more profitable than other firms*.
* Source: The Digital Advantage, Capgemini Consulting & The MIT Center for Digital Business, 2012.
The importance of digital channels is rising, especially among the younger age brackets (18 to 34). Within the next five years, insurers expect nearly a third of their business to be generated from digital channels—internet and mobile. Insurers will need to align their investments in digital functionalities with customers’ preferences along the insurance value chain. Find out which two areas offer the greatest opportunities.
Learn more by downloading the full report.
Embracing Digital Transformation
Digital maturity of the insurance industry is relatively low. To remain competitive, improve customer experience and achieve profitability, insurers need to fully embrace top-to-bottom digital transformation. Key areas where insurers should focus:
- Integrate across channels to enable customers to shift seamlessly between channels and more easily manage an ever-changing set of customer interfaces and touch points. Discover Capgemini’s All Channel Experience offering for insurance.
- Maximise social media to market offerings, drive sales, and gain real-time customer insights
- Take advantage of predictive analytics techniques to provide value across multiple business units, including underwriting, claims, customer service, product pricing, and risk management
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For more information
- Learn more about the World Insurance Report 2014 and download a copy
- Explore Capgemini’s insurance offerings including All Channel Experience and mobile and social media solutions for insurance
- Register to attend a presentation about the report findings in Amsterdam, Spain or Italy
- Visit the European financial management & marketing association (Efma) website
To learn more about creating captivating customer experiences or to explore all channel experience solutions for insurance, contact us at email@example.com.