Improving customer experience is crucial if insurers are to increase revenues

Customer experience is central to many insurers’ plans to increase business revenues, according to a new report by Strategy Meets Action.

The insurance market analyst said insurers were looking to draw insights from their interactions to ensure no opportunities are wasted.

“Many insurers are making improved customer experiences a centre piece of their strategy, and are discovering that innovation plays a key role in their transformation to a customer-centric enterprise,” the report said. “Creating exceptional customer experiences begins by capitalising on every interaction with prospects and policyholders to learn and understand more about their needs and behaviours.”

The technology analyst Forrester recently produced a customer experience innovation study which found that 64% of companies have allocated time to innovation activities and 55% have dedicated innovation budgets. Kerry Bodine, principal analyst for customer experience at Forrester, claimed there are, however, still too many companies failing to fully meet the needs of their customer.

“The numbers sound promising — but they just don't add up. In 2013, only 8% of the companies in Forrester’s annual Customer Experience Index received a top grade from their customers — and that's a pathetically low number in comparison to the amount of professed innovation in the industry.

“Companies seem to be missing the point about aligning innovation efforts with consumer needs, business model, and brand — and that’s what keeping many from differentiating.”