Amazon, Spotify, Netflix and even Uber. We’ve all heard the names and understand instinctively how the influence of companies like these has changed the expectations and attitudes of consumers across the product goods and services industries.Executive SummaryThe right digital distribution platform takes an insurer well past the critical point of offering online engagement to a place where insurers come to know each consumer on an individual basis and gain the ability to personalize coverage, according to Kathleen Garlasco of BOLT Solutions. Market networks allow personal and commercial lines insurers to tailor coverage and position them to keep in-house between 15 and 20 percent of commissions for products sold through the network, she writes.
As one of the last holdouts, insurance has been slow to evolve, but as consumers lead the revolution toward more personalized services and offerings, even tried-and-true property/casualty insurers are recognizing the urgent need to adapt to the new reality.
Adapt Now or Lose Market Share
Plagued with customer dissatisfaction and pressed upon by tech-savvy new entrants who “get” the nuances of today’s consumer, the insurance industry is under intense pressure to change from its long-entrenched product focus toward a more customer-centered ideal founded on personalized service and offerings.
Sources: Bain & Co., “Global Digital Insurance Benchmarking Report 2015: Pathways to Success in a Digital World” and BCG Perspectives, “A Roadmap for Winning as Insurance Goes Digital,” Oct. 27, 2014Consumers are a complicated group, however, with subtle personal preferences that make developing a one-size-fits-all strategy of engagement impossible. For instance, nearly 80 percent of consumers indicate a strong trend toward online insurance interactions found in direct-to-consumer digital distribution, but simultaneously, 50 percent still want personal contact when they have a question or concern.