2017 GLOBAL DISTRIBUTION & MARKETING CONSUMER STUDY
Digital connectivity meets shifting insurance customer demands
The Accenture Global Distribution & Marketing Consumer Study illustrates a shift in behaviors among 33,000 insurance customers surveyed across 18 markets.
These customers have distinct ways they want to interact with insurance providers throughout their consumer journey. New technology, enabling digital connectivity and cognitive computing, might help insurers push past indemnification into a deeper role with customers.
A comprehensive view of shifting consumer expectations
The insurance report explores the changing marketplace confronting insurers today. It illustrates the challenges that come from shifting customer demands, but points the way to some strong solutions.
Introducing today’s consumers:
Three distinct groups emerge
Our study identified three groups of consumers that show different behaviors and preferences around how they want to interact with their insurers.
This digitally active group is ready for new delivery models. They are willing to share their data in exchange for personalized services. Nomads are comfortable with computer-generated support and with receiving services from non-traditional providers. They make up 39% of insurance respondents.
Nomads are looking for 5 key attributes from their insurance provider:
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Ready to transition to a new digital model
Comfortable with digital-only insurance advice
42% are very willing to use computer-generated advice for buying insurance, seeing it as faster and more convenient.
Insurers without automated product advice programs should get started if they want to reach Nomads.
REPLACING RESEARCH ONLINE, PURCHASE OFFLINE WITH ONLINE-ONLY
51% have purchased insurance through an online channel.
Insurers working with Nomads should explore “pure” online and digital distribution options.
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Insurance agents are becoming involved later in the buying process
DIGITAL ALTERNATIVES MATCH THE AGENT AS AN ADVICE SOURCE
30% say brokers are the most useful product advice source.
Insurers targeting Nomads should review their online presence and their relationships with aggregators.
Agents add value at later stages and in complex areas
51% still purchase insurance from agents face-to-face or by phone.
Insurers seeking to attract Nomads will still need agents, but they will increasingly be “closers” and problem-solvers rather than primary sales contacts.
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Want flexible, personalized models
Attracted by pay-per-use
49% interested in buying pay-per-use insurance coverage online or via mobile for specific temporary needs.
Insurers targeting Nomads should demonstrate to these customers how their behaviors can reduce the price they pay for insurance.
New models appeal
62% would consider peer-to-peer insurance if available.
Insurers focusing on the Nomad market can take the next step, moving from affinity programs and group insurance into peer-to-peer models.
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Want insurers to go beyond indemnification
Sharing data must deliver gains
63% want personalized information to reduce the risk of injury or loss, in return for sharing data.
Insurers can expand their value proposition to Nomads to help customers live more fulfilling lives and mitigate risks of loss or injury.
Want insurers to add value in their daily lives
80% interested in driving route suggestions based on geo-data.
Insurers working with Nomads should be able to obtain, organize and deliver the kind of information these customers value.
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Will migrate to non-insurance firms
Not tied to traditional providers
74% would be willing to buy insurance from Amazon or Google.
55% would be willing to consider buying from a supermarket or retailer.
Insurers selling to Nomads should be exploring partnerships with non-insurance providers.
These consumers search for the best price. They want to buy financial services from traditional providers and, while they operate well in a digital environment, they also place value on one-to-one engagement. They make up 17% of insurance respondents.
Hunters are looking for 4 key attributes from their insurance provider:
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Are primarily driven by value for money
Cost matters to them
100% say competitive pricing is a top driver of loyalty.
Insurers working with Hunters may have to offer competitive pricing before experimenting with new service offerings.
Demand a high service level for their money
52% say value for money is a key loyalty driver — they demand a good quality of service in relation to the amount paid.
Insurers targeting Hunters need to review their own cost structure to bring down pricing while providing value and service.
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Want to use specialist insurers
Don’t see value in non-insurance providers
None are willing to get insurance from Amazon or Google.
Hunters want to work with insurers, but insurers should not take this loyalty for granted.
Less attracted by insurance offered as an "add-on" service
Only 18% would buy home insurance from a home service provider.
Insurers should examine ways to get in front of Hunters with the right offer at the right time.
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Human advice is vital at key stages – more so for Hunters (42%) than for Quality Seekers (37%) or Nomads (30%)
Value human advice on insurance purchases
Only 20% are very willing to accept computer-only advice for buying insurance.
Process automation and other initiatives can free up agents to provide value-added insurance advice, something Hunters seek.
Agents are important for more complex advice
58% use face-to-face or live telephone interaction if seeking advice about coverage.
Insurers working with Hunters should maximize agents’ ability to provide insurance advice and deal with complex situations.
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Adding value through data is appealing
Open to data-driven offerings
67% are interested in adjustments to auto insurance costs based on car usage patterns.
Insurers pursuing Hunters should accelerate efforts to provide telematics-based data capture.
These loyal customers value brand integrity and service excellence, and will work with providers who put customers interests first. Price is less important than elements such as data protection and responsive service. They make up 44% of insurance respondents.
Quality Seekers are looking for 3 key attributes from their insurance provider:
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Are driven by service and trust
Value a high quality service
46% say a high quality customer service drives loyalty.
Insurers targeting Quality Seekers should be automating routine transactions and emphasizing personalization and high-touch service.
Need to trust in integrity of their insurer
38% need to trust their insurer will act in their best interests.
Insurers pursuing Quality Seekers should communicate their commitment to data security and protecting the customers’ interests.
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Will share data but on their own terms
More than half will share more personal data
53% will share more data with their insurer.
Insurers seeking to reach Quality Seekers should have a clear plan for turning this data into value, whether through personalization, efficiency or monetization.
Sharing must deliver rewards
67% want a priority service.
Insurers should have relevant products or risk guidance capability in place before seeking shared data from Quality Seekers.
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Open to computer-generated advice if it enhances the insurance buying experience
Show encouraging interest in computer advice
22% are very willing to use computer-only insurance advice, seeing it as faster and more convenient.
A computer-only insurance advice option should be in the works, but insurers should meet Quality Seekers’ expectations as to value and service.
Needs to add speed and convenience
41% are willing to use computer advice for buying insurance if it’s faster and more convenient.
Insurers should have a computerized product-advice option available to meet growing demand from Quality Seekers.
Shifting customer demands—Exploring Financial Services trends and implications
Our study looked across Financial Services to understand financial customers’ wants and needs. Five above-line trends emerged, as well as specific regional and financial industry findings. See what else our survey reveals.
VIEW FINANCIAL SERVICES TRENDS AND STATS
VIEW THE REPORTS
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THE VOICE OF THE CUSTOMER: IDENTIFYING DISRUPTIVE OPPORTUNITIES IN INSURANCE DISTRIBUTION
Do you know how consumers want to interact with their insurers? Our insurance report describes how insurers can enhance their customer connection.LEARN MORE -
FINANCIAL PROVIDERS: TRANSFORMING DISTRIBUTION MODELS FOR THE EVOLVING CUSTOMER
Where is the financial marketplace headed? Read more about the top-line trends and insights derived from our cross-financial services report.LEARN MORE -
BEYOND DIGITAL: HOW CAN BANKS MEET CUSTOMER DEMANDS?
Learn what is changing in the banking marketplace, and where digital innovation may play its part—and where it may conflict with traditional consumer values.LEARN MORE -
INVESTMENT ADVICE: MAINTAINING TRUST AMID SHIFTING CUSTOMER DEMANDS
How will investment advisors manage changing customer demands with digital innovation and an interest in traditional service levels and expectations? Our report examines investment advice findings.LEARN MORE
MEET OUR LEADERS
Piercarlo Gera
Global Managing Director,
FS Distribution & Marketing Practice
Piercarlo is Accenture’s global lead for its Financial Services Distribution & Marketing practice, which covers work in distribution channels (such as branch, mobile, web and social media) and marketing (such as big data, analytics and CRM).
John Cusano
Senior Managing Director Global Insurance
John is Accenture’s senior managing director of Global Insurance. He is responsible for setting the industry group's overall vision, strategy, investment priorities and client relationships.
Erik J. Sandquist
Managing Director,
FS Distribution & Marketing Practice, Global Insurance Lead
Erik helps clients reinvent their business and operating models through transformational change programs. His specialties include insurance distribution, sales, agent effectiveness, customer centricity, marketing, underwriting, policy administration and post-merger integration.