Close

Choose a country

United KingdomEnglish
South AfricaEnglish
IndiaEnglish
InternationalEnglish

Insurance companies need to embrace CX and transform for survival

Blog
17th January 2018

Research undertaken McKinsey in 2017 titled “Time for insurance companies to face digital reality” suggests that insurance companies need to work harder to improve the customer experience (CX). The importance of this finding is not just that customers will be happier – the McKinsey research suggests that a focus on CX is critical as insurance companies undergo digital transformation programmes.

McKinsey believes that this is a question of survival. Insurance companies that do not rethink their business, transform and offer innovative digital services, and centre the experience around what the customer wants may soon cease to exist.

When you look at what insurance customers want, the message is clear – insurance customers have very clear expectations when it comes to dealing with insurance companies:

The thing is insurance is not like most products. It’s often a compulsory purchase, such as car insurance or desirable because it creates peace of mind, such as home contents cover. Customers want to pay as little as possible, but they also expect to be treated well.

The McKinsey research suggests five pillars that all need to be considered if any insurer wants to successfully manage a digital transition:

  1. Innovate: customers learn about products online today and want to use a wide variety of channels when communicating with their insurer. Embrace this change and explore how technology can create entirely new products – such as wearables, health monitors, and car trackers.
  2. Customer Ownership: loyalty is a thing of the past. You will only get customers to renew if you build a relationship with them. Use their information and show that you understand their needs – offer relevant packages and deals.
  3. Efficiency: explore how digital changes can be an opportunity for the business, not just a threat. For example, digital CX provides an opportunity to build deep connections to customers with the ability to create Big Data sets that can be analysed to explore customer behaviour.
  4. Scale: App culture means that small players can grow and scale quickly. Anyone with a great idea can launch their business at relatively low cost. Your main competitor next year may not even exist today. Think about how the market is changing and how you can build better customer relationships to drive scale.
  5. Speed and Agility: are your existing systems holding back innovation and new products? Being agile is essential today – those systems may drag your business into irrelevance. Consider how your business would be functioning if your technology supported new ideas from the business team rather than preventing them from trying anything new.

Our white paper Insure Against Loss examines in detail the opportunities in the insurance sector. In this paper we will explore how delivering an exceptional customer experience can increase customer engagement levels and reduce customer churn.

It’s clear that CX sits at the core of all these suggestions from McKinsey. The insurance business needs to embrace the digital revolution and find new products and ways to interact with customers, but the experience must always be positive and easy. What do you think about the McKinsey research? Leave a comment below or contact me on LinkedIn and let me know.


Leave a Reply

Your email address will not be published.Required fields are marked *


Helen Murray
Article by: Helen Murray

News & Insights

Recommended for you
Solution Designer
Service Provider
Technology Enabler
Blog
[Fashion] Take advantage of the “Made in Spain” boom

In recent years, the "Made in Spain" tag-line has positioned itself like never before in the fashion footwear area. It has become a "brand" associated with comfort, quality and design, with excellent value for money. A recognition that opens the doors to footwear firms when entering the most demanding markets. One of them is the United States. A complicated market due to its size, payment...

News
Webhelp Launches New Derby Site

Webhelp UK, one of the country’s leading customer experience and business process outsourcers (BPO), has proudly launched a new site in Derby. It was officially opened on 8th October 2018, at an event attended by the Deputy Mayor for Derby, Councillor Frank Harwood. The new site has three main...

News
Webhelp nominated for Eighteen Awards in Customer Experience and HR

An exciting Awards season lies ahead for leading global Customer Experience (CX) and Business Process Outsourcing (BPO) expert, Webhelp, which has been named as a finalist eighteen times across five different awards programmes. Firstly, Webhelp has been recognised by the UK Customer Experience...

Whitepaper
B2B Marketplaces are blossoming

Following our publication last year of " The Spring of B2B Marketplaces ": it is time to look back and to answer these questions: has there been some movement in the market? Have B2B players evolved in their marketplace business models? Is launching a new market observatory worthwhile? The answers...

Case Studies
Webhelp People Analytics

...

×

Webhelp Cookies Preference Centre

Strictly Necessary Cookies
The website requires the use of cookies for essential functional requirements and these are outlined in the terms and conditions.

Enhanced Functional Cookies
Some features of this website use services provided by third parties websites. These features use cookies to implement their services on this website and may collect data about your visit to help them optimize their functionality. The Webhelp terms and contitions outlines the cookies used by these services.

We have links to social networking such as Twitter, Facebook and LinkedIn.
These websites are third party sites. We do not place cookies on their behalf, and do not have control over the way they collect or use your data.
We encourage you to read more about their policies:
Twitter
LinkedIn
Facebook