Insurers need to keep pace with tech savvy intruders

A failure to keep up with rising customer expectations is putting insurers at risk of losing custom, Accenture research has revealed.

The report said that companies that once considered their business safe from intrusion are now having to rethink strategies as tech-savvy firms enter the market.

The study claimed that as much as $470 billion in P&C and life insurance premiums are available to the most digitally competent companies as a result of declining customer loyalty and the commoditisation of insurance products.

Accenture found just one in six (16%) customers would now definitely buy more products from their current provider and just one in four (27%) hold their insurance providers’ trustworthiness in high esteem. A quarter (23%) said that they would also consider purchasing their next insurance product from online providers and tech giants.

John Cusano, senior MD of Accenture’s global insurance practice, said: “Today’s insurance customer is more empowered, more social and has higher expectations of his/her providers.

“The study data indicates insurers are not keeping up with rising customer expectations, leading to increased customer dissatisfaction with insurance providers.

“This has created a ‘switching economy,’ which threatens traditional insurers by giving the advantage to companies most successful at exploiting digital technologies.”