The insurance industry insights organisation’s World Insurance Report claimed 70% of insurance customers are at risk of defecting to other carriers.
The study claimed that improving customer service had to become a priority for insurers. It also added that digital channels were the most likely area to drive profitability as insurers expect one-third of their business to occur over these channels within the next five years.
“Insurers need to deliver a positive experience to their customers each and every time they interact with the company,” said Patrick Desmarès, secretary general of Efma. “This consistent, positive experience will help create a customer base that is loyal and ultimately more profitable.”
The report found firms with a strong digital presence and a customer focus are, on average, 26% more profitable than other firms. To meet customer demand on digital channel and improve the customer experience, the report suggested insurers should fully embrace a top-to-bottom approach to digital transformation, while also driving operational excellence at the back-end to ensure profitability.
Multi-channel integration, using social media and predictive analytics techniques, was identified as a key insurance technology project area.