2021-05-31-Capgemini-World_Insurance_Report_2021_40页_5mb

World Insurance Report 2021 Summary

Core Content

The World Insurance Report 2021 focuses on the evolving role of distribution channels in the insurance industry, particularly in the context of the CARE equation – Convenience, Advice, and Reach. The report highlights how insurers must adapt to new customer expectations and business dynamics driven by the pandemic and digital transformation.

Main Points

• CARE Equation: Insurers must innovate to deliver Convenience, Advice, and Reach across all distribution channels. Digital channels excel in Convenience due to 24/7 availability and easy access, while Agents and Brokers are still the go-to for Advice, especially for complex products. Reach is determined by how effectively a channel can serve specific customer segments from research to purchase.

• Changing Business Dynamics: The pandemic has accelerated the shift towards digital engagement, with over 80% of customer interactions now being digital. However, digital channels are still limited in their ability to provide individualized advice, which is crucial for personal lines such as auto insurance and retirement plans.

• Digi-Intermediation: This concept refers to the integration of digital tools with human expertise to create a phygital model. It allows for seamless customer experiences and enhances the value delivered through a combination of virtual and physical engagement.

• Technology as a Catalyst: Insurers are increasingly using AI, chatbots, and APIs to improve agent and broker efficiency and customer experience. These technologies help in personalized advice, streamlining operations, and data-driven decision-making.

• Customer Expectations: Customers value convenience, self-service features, and access to accurate information. They are more likely to use digital channels for basic research and agents/brokers for complex decisions. Millennials and Gen Z require more pre-purchase advice due to their limited insurance knowledge.

• Agent and Broker Needs: Agents and brokers require 360-degree customer data, digital tools for self-service and consultative selling, and support from insurers to meet customer expectations. Over 40% of agents/brokers feel they are unable to consistently meet customer convenience and response time demands.

• Future-Proofing Distribution: Insurers must retool their channels and embrace an Open Insurer mindset to embed insurance into everyday life and collaborate with ecosystem partners. This approach can help enhance CX, fill distribution gaps, and maximize value.

Key Information

• Digital Channels:

  • Offer 24/7 access and quick information retrieval.
  • Are not the top choice for complex product research due to lack of personalized advice.
  • 64% of small and medium commercial firms use digital channels for researching coverage options.

• Agents and Brokers:

  • Are the most trusted for personalized advice.
  • Require support from insurers to enhance digital capabilities.
  • 60% of agents/brokers use digital CRM tools, but only 60% of insurers provide these.

• Technology Integration:

  • Chatbots and marketing automation help agents/brokers scale operations and focus on personalized advice.
  • Robo-advisors and APIs can enhance helpdesk scalability and customer engagement.

• Omnichannel Approach:

  • Enables seamless transitions between online and offline channels.
  • ERGO Germany and Zurich Switzerland have successfully implemented omnichannel strategies, improving customer trust and resilience during the pandemic.

• Customer Experience (CX):

  • Self-service features are gaining traction.
  • Convenience is a key competitive advantage.
  • Personalized advice and individualized service are critical for customer retention.

Conclusion

The World Insurance Report 2021 underscores the need for insurers to retool their distribution channels and embrace digi-intermediation. By leveraging technology, enhancing customer data insights, and fostering collaboration, insurers can maximize the CARE equation and deliver superior customer experiences. The future of insurance distribution lies in a hybrid model that combines digital efficiency with human expertise to serve evolving customer needs.