Insurance must “step up” and meet customers power with experimentation and confidence

Published: June 29, 2017

Updated: July 24, 2018

Author: Luke Jones

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Customers are becoming more in control and arguably have more power and insurance customers should respond by becoming innovative. Ellen Carney, principal analyst for e-business and channel strategy for US-based firm Forrester, pointed to a direction for insurers to tap into customer confidence.

Speaking in a Centre for Study of Insurance Operations (CSIO) webinar, Carney said “customers are in the driver’s seat now,” during the Trends 2017: Why Brokers Must Unleash their Digital Tools session “They like being in control of their destiny and certainly digital is a mechanism to be able to do that.”

Insurance providers should seek self-efficiency and control over their transaction information. Experimentation should be a focus for providers, giving customers something to meet their growing demands:

“Consumers are really willing to experiment, experimenting with devices whether it’s wearables or smart door bells or telematics insurance,” Carney said, suggesting that “consumers are now hyper-adopters of the next new thing.”

She added “we’re seeing that willingness to experiment emerging not just for devices, but also the kinds of coverage that consumers are willing to buy.”

Devices are now the driving force for customers, who are turning to technology to connect with insurance companies as well as conduct personal lives. This trend will almost certainly continue and digital will become more integrated with physical. Insurance companies have often been accused of lagging behind in terms of digital transformation and Carney says customers are becoming empowered by technology:

“All this technology has not just empowered customers, it’s emboldened them,” she said, while urging companies to “step up and live this age of the customer.”