Insurers’ digital initiatives lack of customer focus

Digital initiatives in the insurance industry are being threatened by a lack of focus on customer experience, according to a survey by Forrester.

The analyst’s survey, of 200 IT and business decision-makers at insurance companies, said insurers were facing challenges when leveraging customer portals.

It found that 60% of insurers claimed that they had been hampered by poor quality customer insights – meaning that some insurers could be making wrong choices about their digital investments.

Nearly two thirds (65%) also said that their digital technology portfolio is the result of an ‘as-needed/ad hoc’ procurement approach.

Half of respondents added that the lack of a digital innovation strategy prevents delivery of digital marketing initiatives that drive growth, while a quarter (24%) reported the biggest obstacle to making digital technology effective as a lack of skills.

However, the study, which surveyed companies in the US, UK and Germany, found insurers were on their way to embracing digital strategies.

The report claimed that there was recognition among insurance companies that digital can play a major role in their growth (47%) and drive a unified customer experience (44%).

In particular, 44% identified digital self-service as a key priority to improve customer experience, while 29% believe that Big Data is having a positive financial impact on business.