The Next Generation Customer – KPMG Kenya Insurance Survey
Article Synopsis :
The insurance sector in East Africa is on the cusp of fundamental transformation, which will ultimately change the way the entire insurance industry looks and works on the continent. Much as with more developed markets, delivering best-in-class customer service is key to meeting robust growth forecasts.
KPMG’s report “The Next Generation Customer”, shares keen insights and valuable tips mined from fresh survey data to help insurers in Kenya derive value from their business agendas amid shifting market dynamics.
KPMG surveyed insurers, brokers, and agents across Kenya – Africa’s most developed insurance market – with key findings as follows:
- 71% of respondents carry out customer satisfaction surveys.
- Over 80% are not confident that their customer care is best in industry; and only 13% rate their customer care as of the ‘highest quality.’
- 60% claim that they leverage customer data for day-to-day sales operations. However, only 20% leverage data for product development.
- 85% use customer data in the creation of business strategy.
- 98% proactively cross-sell insurance products.
- 70% of organizations facilitate predictive underwriting which provides a good base for the changing distribution landscape.
- 74% consider customer experience as part of the audit review.
- 64% say that they have frameworks that are customer-centric in nature.
- 5 in 10 organizations surveyed are highly concerned with customer loyalty and retention, yet only 1 in 10 are interested in understanding their customers. Only 2% consider data an important aspect of customer management.
- 49% say that customer satisfaction is the biggest challenge with 5% naming fraud as the chief concern.
- 61% have a documented conduct-risk framework: 63% claim that their conduct-risk framework is trained and only 49% say it is implemented.
- Only 69% say that their associates are trained regularly on customer care and reputational risk.
- 51% of organisations have centralised information management systems and only 38% of IT systems in organizations are viewed as integrated and covering key areas of customer care.
- 59% of organizations have embraced mobile technology as part of their operational model.
- Respondents are keen for IT platforms such as management of customer data (details and product information), email integration and case management and not keen on qualitative functionalities such as analytics and lead management.
- 68% of organizations use social media to enhance customer service and brand management.
- 89% of organizations value the policy holder or existing customer as the most important stakeholder; 8% rate members of staff and 2% society as most valued.
The prime focus of the report is on delivering next generation customer service, engagement and experience. Many insurers lose sight of customer-based outcomes as they strive to achieve specific outputs such as digitization and cost cutting. To help maintain focus, KPMG proposes 9 levers and questions to help players build the right engagement and experience framework:
- Financial outcomes, structuring, investment and capital allocation: What are the 3–5 year financial and strategic objectives and key indicators?
- Markets: Does the current portfolio of businesses maximize likelihood of attaining performance targets and strategic objectives?
- Propositions and brands: How should the portfolio of propositions and brands evolve over time to deliver on financial and strategic objectives?
- Clients and channels: What changes to the operating model can enhance customer/channel performance?
- Core business processes: What are our priority business processes to deliver financial outcomes and a high-performing business model?
- Operational and technology infrastructure: What are the priority infrastructure and technology elements required to enable the target business model?
- Organizational structure, governance, risk and controls: Do we have proper oversight in place to drive the desired outcomes and respect our fiduciary responsibilities?
- People and culture: What leadership is required to drive the transformational change and support desired behaviors and culture?
- Measures and incentives: What will we measure to monitor progress on strategy, identify issues and enable action where required?
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Digital Insurer's CommentsConvenience and personalised interaction enabled by technology play crucial roles in business models in emerging markets. Amid the cultural and economic backdrop of Africa, three additional ingredients are essential for success:
- Easily understandable products geared to first-time insurance buyers.
- Instant, easy, multi-touchpoint and cost-effective access to services.
- Trusted advice (and trust in general that, for example, claims will be paid).
Key touchpoints include policy inquiry, application and claims. Thus, the East African insurance market seems a prime testing and proving ground for cost-effective, mass-market innovations transferrable to other geographies.
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