Accenture research shows that there is a giant “switching economy” in insurance: Customers, seeking an experience similar to what they get from other industries, are considering switching insurance providers—potentially putting as much as $400 billion of premium revenues in play.
The switching economy is driven by customers’ growing desire for products and services that are more relevant to their lifestyles, more convenient to use and more cost-effective.
The Accenture 2013 Consumer-Driven Innovation Survey shows that there is a growing move to use multiple channels across the sales cycle, with 71 percent of respondents willing to purchase insurance online. Another key finding: 80 percent say that personalized service would be an important factor behind their decision to switch insurance providers.
The switching economy is a threat—but also an opportunity. To win business, insurers must work to create more positive customer experiences based on five core elements.
The first element is “Know me: Customer relevance.” Eighty-two percent of respondents say they would share personal information to optimize their insurance coverage.
“Show me you know me: Relationships at scale” covers the way in which technology makes it possible for insurers to offer customer intimacy.
Customers prefer different channels for different interactions—but they want a consistent, personalized experience across all channels. This dynamic gives rise to the third element, “Delight me: Seamless experience.”
Mobile devices are widely used by insurance customers—indeed, 42 percent of respondents say that in the past two years, they’ve used them to deal with their providers. We call this element, “Enable me: Inherently mobile.”
The fifth and final element, “Value me: Naturally social,” speaks to the growing importance of social media. We found that customers increasingly rely on comments via social media to help them choose insurers, and more than half of the survey respondents are interested in products offered through social media.