The digital prize – Taking customer connection to a new level – PWC
Article Synopsis :
The hype of Social Media, Mobility, Analytics, and Cloud (SMAC) and their role in driving customer-centricity has turned into reality and is emerging as a new disruptive force for the global insurance industry.
In the insurance 2020 viewpoint report “The digital prize – Taking customer connection to a new level”, PWC explore the megatrends that are reshaping the competitive environment for insurers and the markets in which they operate. To prepare the report, 9,281 consumers were surveyed in May 2014 about what kind of non-life insurance they hold, their attitudes to buying non-life insurance digitally and what, if anything, would encourage them to buy non-life insurance this way.
Some of the key findings from the report are:
- 68% of consumers surveyed would be willing to download and use an app from their insurance provider
- 67% of consumers surveyed would be willing to have a sensor attached to their car or home, if it could result in a reduction in premiums
- 50% of consumers surveyed would be prepared to provide their insurer with additional personal and lifestyle information to enable them to seek the best deal for relevant services on their behalf
In the past, digital business meant e-commerce, but the landscape has changed and so has the consumer – the rapid rise of social media, smart devices, big data and cloud computing has opened up new avenues of potential for insurers and are making consumers better informed, more connected and more vocal. PwC predict that by 2017, a new breed of consumer will dominate, which they call the ‘Digital Native’.
In order to address the needs of this changing landscape, PwC believe the following will occur:
- Businesses have the right mix of digital channels to improve customers’ e-commerce experience and successfully integrate their physical and digital operations.
- Businesses exploit information gained from how customers want to use their products and services to develop new propositions that help customers improve their lifestyle and increase their loyalty.
- Customers’ digital identity will become complex. The more they interact with business’s products and services, the more insights they will gain about themselves. That then offers an opportunity for a ‘digital identity manager’ to work on their behalf to get the best deals.
The report describes digital as the ground-breaking array of ‘SMAC’ (Social, Mobile, Analytics, Cloud) developments in customer expectation, behaviour and interaction, which are rapidly reshaping the rules of business and also identifies the three waves that is defining the development of customer strategies for the digital age:
- Wave one: Shaping a new customer experience
- Wave two: New and enhanced products
- Wave three: Managing the digital identity
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Digital Insurer's CommentsSocial Media, Mobility, Analytics, and Cloud technologies are significantly impacting carriers as their integration into the business model has changed the way they are looking to increase their customer base, enhance brand awareness and improve customer experience. Hybrid customers are quickly reinventing the way they explore information, search for new products, and their expectations about service levels. To keep them loyal, insurers across markets need to prioritise SMAC implementation and be as responsive and agile as possible. Carriers who are still struggling with their digital strategy need to hurry and figure out the flaws in their model. Survival in the emerging ecosystem will be highly dependent on customer value creation through business agility, collaboration and innovations and SMAC technology is bound to play a key role in enabling insurers to achieve this.
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