Insurance industry 'failing digital customers'

Despite the global insurance sector investing nearly $28 billion on customer experience, less than half of consumers (49 per cent) feel their insurance provider will be responsive to their basic needs, according to research.

EIS, a digital platform provider for insurers, commissioned research among almost 1,100 consumers who own insurance policies in the US, the UK, France and Germany to gauge customer experience expectations.

The top three most important factors for consumers when purchasing an insurance policy are: the ability to purchase products and services online (44 per cent), the ability to offer dynamic pricing based on the individual consumer’s specific needs (42 per cent), and having an easy-to-use mobile app (32 per cent).

But when it comes to digital prowess, consumer opinions of insurers are astonishingly low - only 23 per cent of consumers expect insurers to integrate their experience across mobile, web and in-person channels, while only 19 per cent expect insurers will know them and their preferences following an interaction.

Insurers should be focused on how they can provide technology that empowers consumers to manage their financial lives digitally, the report found, with 72 per cent of UK respondents saying this should be the case, and about 64 per cent of those in the US and France agreeing.

“This dynamic presents a terrific near-term opportunity for digitally-savvy insurers to exceed expectations and win business,” said EIS.

Overall, there is a 36 per cent gap between consumers who currently use one company for all their insurance needs, and those who would be happy to do so.

While 44 per cent of consumers in France currently purchase all their insurance from a single provider, the gap is most pronounced in the UK, where only 12 per cent of consumers do the same - yet 60 per cent are comfortable buying from a single provider.

Anthony Grosso, head of global marketing at EIS, said: “Insurers who can rapidly re-architect their IT infrastructure to simplify the customer journey and create products that better meet lifestyle and lifecycle needs, can become the one-stop shop consumers crave.”

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