$470 Billion in Insurance Premiums Up for Grabs Due to Declining Customer Loyalty & Perceived Product Commoditization, Accord...
August 04 2015 - 4:03AM
Business Wire
‘Switching Economy’ grows as less than
one-third of insurance customers satisfied with current
provider
As much as $470 billion in life insurance and property &
casualty insurance premiums will be up for grabs globally as a
result of declining customer loyalty and the perceived
commoditization of products, according to a new report from
Accenture (NYSE:ACN).
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The Accenture Strategy report – Capturing the Insurance Customer
of Tomorrow – is based on Accenture’s Global Consumer Pulse
Research, which included more than 13,000 P&C and life
insurance customers in 33 countries. The survey found that less
than one-third (29 percent) of insurance customers are satisfied
with their current providers. At the same time, the number of
customers who believe that most insurance carriers are the same in
terms of their products and services jumped 50 percent in the last
year, to 21 percent in this year’s survey from 14 percent in a
similar survey last year.
Furthermore, less than one in six customers (16 percent) said
they would definitely buy more products from their current
insurance provider. In addition, only one in four (27 percent) has
a high estimation of their insurance providers’ trustworthiness,
and nearly one in four (23 percent) said they would consider buying
insurance from online service providers, including technology
giants.
“Today’s insurance customer is more empowered, more social and
has higher expectations of his/her providers,” said John Cusano,
senior managing director of Accenture’s global Insurance practice.
“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.”
Nearly half (47 percent) of the survey respondents said they
want more online interactions with their insurers. In the past six
months, half (49 percent) of P&C consumers purchased a policy
online, with two in five (41 percent) using a mobile phone to make
the purchase. The percentages are even higher for customers in
emerging markets, with 57 percent of P&C consumers there
purchasing a policy online, and more than two-thirds (69 percent)
of those using a mobile phone to make that purchase. While many
consumers globally are using online tools to purchase insurance
products, only 15 percent said they are satisfied with their
insurers’ digital experience.
“Leading insurers realize the need to offer a broader range of
innovative products and services and create a differentiated
customer experience, which will likely require partnering with
nontraditional players,” added Jean-Francois Gasc, managing
director, Insurance, Accenture Strategy, Europe, Africa and Latin
America. “As a result, traditional insurance providers face a stark
choice: embrace digital and customer-centricity, or become a highly
efficient manufacturing utility, leveraging capital and digital
technologies to provide low-cost insurance product manufacturing
and servicing. Those who do neither are likely to lose out in this
switching economy.”
Methodology
The Accenture Global Consumer Pulse Research is an annual
project that assesses consumer attitudes toward the customer
experience – including marketing, sales and customer service
practices – and consumers’ behaviors in response to companies’
practices. For the most-recent report, Accenture surveyed more than
23,000 respondents, including 6,521 P&C insurance customers and
6,507 life insurance customers in 33 countries. The survey was
conducted via the Internet in 2014. The findings quoted in this
report combine the responses from the P&C insurance customers
and the life insurance customers.
About Accenture
Accenture is a global management consulting, technology services
and outsourcing company, with more than 336,000 people serving
clients in more than 120 countries. Combining unparalleled
experience, comprehensive capabilities across all industries and
business functions, and extensive research on the world’s most
successful companies, Accenture collaborates with clients to help
them become high-performance businesses and governments. The
company generated net revenues of US$30.0 billion for the fiscal
year ended Aug. 31, 2014. Its home page is www.accenture.com.
Accenture Strategy operates at the intersection of business and
technology. We bring together our capabilities in business,
technology, operations and function strategy to help our clients
envision and execute industry-specific strategies that support
enterprise wide transformation. Our focus on issues related to
digital disruption, competitiveness, global operating models,
talent and leadership help drive both efficiencies and growth. For
more information, follow @AccentreStrat or visit
www.accenture.com/strategy.
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AccentureMelissa Volin,
+1-267-216-1815melissa.volin@accenture.com
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