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.”