The ‘age of the customer’ will force insurers to take a digital approach

Insurers are being forced to change how they interact with consumers in the ‘age of the customer’, according to Forrester analyst Ellen Carney.

The e-business and channel strategy analyst claims that in an increasingly connected world customers were no longer ‘passive sideliners’ and are becoming more demanding of the insurance industry.

As a result, Carney claims that digital technology must now underpin all customer experience thinking within the insurance industry.

“Once upon a time, insurers sat in the power seat when it came to their interactions with policyholders,” said Carney. “The insurers understood the magic behind how insurance was sold, how premiums were calculated, and how claims were adjudicated. Those days are gone. In the ‘age of the customer’, consumers are changing the rules and who wield the power.

“Thanks to all things digital, consumers have shifted from being passive sideliners and are willing, and able, to play more active and demanding roles across the insurance business. That means that digital must now be a core underpinning of an insurer’s customer experience philosophy, not an endpoint.”

A separate report by BT and Avaya has also found the number of ways consumers are contacting insurance companies has increased 44% in the last year two years.