“The switching economy represents a huge opportunity for many insurers to gain market share,” said Lyman. “Personalization clearly emerges as a key driver in retaining existing customers and attracting new ones. Innovation in pricing strategy and the ability to make their customers feel that they are unique are thus critical to capturing share within the switching economy.”Insurance customers are open to providing access to their personal data The research also reveals that two-thirds (67 percent) of consumers are interested in mobile insurance services - such as sending pictures of their car to report a claim, or displaying their proof of insurance on their mobile phone – while less than half (46 percent) of the respondents that are mobile device owners have already used their tablets, and 37 percent their smartphones, to deal with their insurers. Also according to the survey, more than one-third (35% percent) of insurance customers are open to provide access to their usage or behavior information – such as car-usage or lifestyle information – if this can give them better value for their insurance coverage. Almost half (47 percent) of the respondents said it would depend on the information requested and only 18% were not comfortable doing so. “While Internet access using personal computers or laptops was the first step in enabling customers to use digital channels, the real game-changer has been the growth in mobile,” said Lyman. “The mobile channel offers insurers the opportunity to take customer experience to the next level, enabling them to become partners of their customers’ everyday life by tailoring offers and interactions to the physical context, as location-based services can be highly relevant in insurance. For example, travel insurance-suggested offers can be sent to customers’ mobile phones when landing in an airport abroad, or a claim can be submitted from an accident scene with supporting photos. Also, as consumers become more open to providing access to their personal data, adoption of usage-based insurance enabled by telematics technology will accelerate.”
Chinese and Brazilian customers are the least loyalThe research indicates that Chinese and Brazilian insurance customers are the least loyal and the most interested in digital services:
- Chinese, Brazilian and British insurance customers are the consumers most likely to switch providers, with 81 percent, 75 percent and 57 percent of respondents, respectively, saying they are likely to switch to another automobile or home insurer over the next 12 months. At the other end of the spectrum, Canadians (23 percent), Japanese (24 percent) and French (24 percent) are the most loyal customers.
- Chinese, Brazilian and British insurance customers are also the most interested in purchasing insurance online, with 93 percent, 83 percent and 81 percent, respectively, of respondents expressing such interest.
- Chinese, Brazilian and South African consumers have the most appetite for new mobile-enabled insurance services, with 94 percent, 88 percent and 85 percent, respectively, of respondents saying they are interested in new mobile services that their insurers might offer.
- Chinese, Brazilian and South African consumers are paying the most attention to comments and recommendations posted on social media before selecting insurance providers, with 86 percent, 82 percent and 60 percent of respondents saying that they would consider these comments in making their insurance-buying decisions.
- Chinese, Japanese and Brazilian customers are the most open to give access to their usage or behavior information to optimize their insurance coverage, with 94 percent, 89 percent and 87 percent, respectively, of respondents saying so.
Among the survey’s other findings:
- More than two-thirds (71 percent) of consumers surveyed would be ready to buy insurance online, such as travel and assistance policies, extended warranty, home insurance or life insurance products.
- More than half (54 percent) of respondents are interested in gaming solutions that insurers may offer to help them better manage risk coverage and lower premium rates.
- Almost half (48 percent) of respondents said they would consider comments on social media in making their insurance-buying decisions.
- U.S. insurer Progressive has launched “Name Your Price” - an online tool that collects basic information from prospective customers, including their auto insurance budget, recommends a package that matches this budget, and then allows the customer to adjust the price, adding or removing insurance features to create a tailored package that achieves the best balance of suitability and affordability.
- A different approach to making auto insurance affordable and personalized is telematics technology, which is increasingly being offered by the UK online carrier Insurethebox. Customers buy miles of coverage in advance. They then allow their car usage to be monitored by an onboard device, and top up their insurance when their miles run low. They are rewarded with bonus miles for safe driving, and for purchasing any of a wide variety of goods from the insurer’s ecosystem of retail partners. Retention is strengthened by the customers’ perception that their insurance is priced specifically for them, as well as by the appeal of the loyalty program.
- USAA helps its members buy cars - they simply state what type of car they are looking for, options they want, where they live, and the insurer’s certified dealer network will send back quotes as well as closest points of sales. USAA also guarantees lowest prices by refunding members the difference if they find the car at a lower price within four days of purchase. This approach implies deep flexible business and operating models that enable the insurer to keep on innovating the member experience.
About AccentureAccenture is a global management consulting, technology services and outsourcing company, with approximately 281,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$28.6 billion for the fiscal year ended Aug. 31, 2013. Its home page is www.accenture.com.