2015 World Insurance Report by Capgemini and Efma

Article Synopsis :

In the “2015 World Insurance Report”, Capgemini and Efma team up to provide a comprehensive overview of the current status of the insurance industry, including detailed assessments of financial performance, customer experience, as well as an overview of looming challenges that require carrier attention in the emerging digital landscape. Chapters two and three of the report are dedicated to digital opportunities and challenges including survey data revealing an alarming drop in customer experience in the face of rising customer expectations. The key findings of this section are:

Digital tools to engage especially younger customers is key to growth and retention.  

• Globally, positive customer experiences decreased significantly in 2014, indicating that steps taken by insurers are not matching rising customer expectations.
• The agent channel delivered positive experience levels that were almost double those of digital channels, suggesting that digital channels are dragging down global customer experience levels.
• Claims servicing is still an area of concern for most insurers when it comes to enhancing customer experience.
• The drop in positive experience levels was much steeper for the Gen Y segment compared to other age groups across all regions, especially in the developed markets.
• Positive experiences led to better customer advocacy, however advocacy levels varied across regions.

The authors outline changes that threaten to negatively impact stability in the insurance industry and highlight tools and strategies available to insurers as they seek to maintain competitiveness. The key findings of this section are:

• Big Data analytics is expected to have the biggest impact by far on the insurance industry, with 78% of executives citing it as a key disruptive force.
• The top three disruptive forces represent only a small portion of the many factors expected to dramatically affect the insurance landscape.  Small threats can grow quickly in significance.
• Insurers globally are falling short of their desired maturity levels in every one of seven core capabilities identified in the report’s Insurance Capability Maturity Model.
• Insurers globally are performing at the lowest maturity levels when it comes to capabilities related to customer interactions.
• Regional differences are exhibited by insurers in their maturity levels related to various capabilities.
• To move from the current states of mostly basic and median competency to leading-edge and advanced practices, insurers must adopt a more customer-centric approach.

The report hails analytics as one of the most critical tools to succeed as a customer-oriented insurer of the future. The report suggests that in order to move from the current state of mostly basic and median competency to leading-edge and advanced practices, insurers must adopt a more customer-centric approach and focus on leveraging analytics to:

• Price Competitively
• Connect Elegantly
• Engage Regularly
• Deliver Perfectly
• Measure Relentlessly
• See Completely
• Transform Effectively

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