Featuring data from over 15,000 customers worldwide and nearly 100 insurance executive surveys, the World Insurance Report 2014 from Capgemini and Efma reveals enhancing customer experience has a direct impact on insurers’ profitability. Given the increasing demand of internet and mobile channels in insurance, digital transformation is an effective approach to create positive experiences, secure customer loyalty, and ultimately improve insurers’ profitability.
While insurers are striving to enhance customer experiences, the improvement in ratings has been slow at just 2% globally with nearly 70% of customers still at risk of switching carriers. Other findings:
- Insurers had generally higher profits in 2012 thanks to over a 30% decrease in claims payouts associated with fewer natural disasters or weather events.
- Only 32% of global insurance customers said they had positive customer experiences with their insurer. The U.S. leads the globe with over 50% of insurance customers citing positive customer experiences with their insurer.
- Capgemini’s Customer Experience Index (CEI) for Insurance found a clear link between improved customer experiences and profitable customer behaviors.
- Find out which channel has a heightened impact on profitable
Insurers in more than two-thirds of the countries managed to improve their scores on our CEI in 2013. Netherlands recorded the largest increase in the percent of customers citing positive experiences, pushing its CEI ranking to the highest in Europe and third globally, behind the United States and South Africa.
Other regional CEI leaders included Australia in developed Asia-Pacific, India in developing Asia-Pacific, and Argentina in Latin America. India, Australia, and Argentina managed to retain their positions as regional CEI leaders despite a drop in their CEI scores in 2013, pointing to a considerable gap between them and the rest of the countries in their respective regions.
Carlo Francesco Dettori
