Article Synopsis :
The “Little Book of Insurance” produced by Accenture Ireland’s Insurance Practice is a simple guide to the Irish insurance market with key terms, industry facts and figures and an overview of current industry challenges. It also includes insights from Accenture’s General Insurance Customer Survey and an overview of developments in innovation in the sector.
The Irish insurance market is going through a prolonged period of change, with all facets of the market being impacted. Though gross premiums increased by 11.4% over the previous year to €12.6b, contributing 6.7% of national GDP, the insurance market has contracted by 30% in recent years.
Though the industry is a major contributer to the Irish economy it faces challenges relating to cost reduction, technology, and shifting regulatory regimes. The non-life segment is loss-making over the last three years and increased claims frequency and claims inflation is adding to the problem.
The country is witnessing a change in customer behaviours as well, as revealed by Accenture Customer Pulse Research for Ireland. Findings include:
- 76% of customers want multiple channel access (online/offline) to service
- 68% of customers have the same or higher service expectations
- 27% used online channels to make the final purchase direct from providers with 40% of these using a mobile or tablet device
- The top 3 reasons customers use online channels are: Speed (fast to use), Convenience (available any place, any time), and Price (the lower the better)
- The top 3 reasons customers use branch/in store options are: Human contact, Better information and advice, and the ability to see, touch, try and compare products
- Where online channels are being used to access insurance sites 10% of customers use ONLY mobile or tablet devices to access these sites compared with 27% who NEVER use mobile devices
- Only 1% of customers would use self-service through IVR/Automated voice systems for customer support; 29% would use online support for convenience; and 29% prefer to phone a contact centre for in-person advice
- Increasing intervention is required by insurers at renewal as 38% of renewals are converted by the provider matching or beating the best alternative offer
- Awareness of telematics policies (among those not currently using this technology) is consistent across all age groups, and stands at 13% overall
The report explores the trends shaping the insurance industry in Ireland and beyond:
- Intelligent Automation: Powered by artificial intelligence, the industry will see a significant uptake on this front with data accessed from every link of the insurance value chain and harnessed using analytics.
- Liquid Workforce: Investments in tools and technology enabling workers to better respond to shifting customer demands.
- Platform Economy: Technology-enabled platform driven ecosystems will drive the next wave of disruption in the industry with many insurers having adaptable interconnected systems.
- Predictable Disruption: The ecosystems, as they adapt and gain power, will drive predictive disruption creating a domino effect in served segments.
- Digital Trust: Insurers must exercise extreme care with customer data. Invaluable trust will follow.
Digital Insurer's CommentsThe Irish insurance market, though small in relative terms, is facing big disruption from new technologies, innovative business practices, and changing regulation.
Though 100% of this report is Ireland specific at least 50% of the analysis applies to insurers in other markets dealing with the same threats and opportunities. If you do business in Ireland you’ll find the information helpful. If not we hope the information helps you think outside your box, wherever it is.
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