Four fifths of insurers to go digital to woo customers

More than four fifths of insurers are planning to use digital technology to improve customer relationships over the next three years, according to a KPMG study.

Research included in a new report, entitled How well is the life insurance industry keeping pace with rapidly changing technology?, found the percentage of firms utilises these solutions will increase to 82%, from 65% three years ago.

The study claimed that a consumer centric approach was now at the heart of insurance business models. It said: “Whether from a technology background or focused on marketing or R&D in the words of Legal and General: ‘becoming customer centric is no longer a nice-to-have, but a must-have. ... Insurers must therefore have ... the ability to deliver value (not just products) to customers directly; regardless if the customer is a person, family or firm’.”

The research also found that more than two thirds (69%) of insurers now have a digital strategy extending beyond their website - although, only 37% say their digital initiatives are fully aligned to their company’s strategic objectives.

Almost half (47%) also claim that developing innovative propositions to meet changing customer preferences is their greatest priority for the next two to three years.