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Contents
03
Executive summary
05
06 Introduction
08
ey finding 1:
K
High turnover and low trust signal serious relationship issues.
16
ey finding 2:
K
Just because they leave you doesnt mean they dont love you.
22
ey finding 3:
K
Insurers have so few interactions with their customers that each one
becomes a critical moment of truth.
32 Key finding 4:
Consumers want more frequent, meaningful and personalized
communications.
38 Key finding 5:
As consumers embrace digital, insurers must rethink their distribution
strategies and partner relationships.
46
Conclusion
48
Contacts
Executive summary
Two years after EYs inaugural Global Consumer Insurance
Survey, results from the 2014 survey confirm that the
insurance industry faces the same type of digital-driven
and consumer-led disruption that retail, banking, media
and entertainment and other sectors have experienced.
Indeed, it seems clear that insurers have much work to do
in delivering the customized experiences, intuitive toolsets
and easy information access that todays informed and
empowered customers require.
We believe that the responses from 24,000 individual
consumers across 30 countries in both mature and
developing markets provide many actionable insights for
insurers seeking to improve their customer engagement.
Indeed, these consumers are telling us that stronger,
two-way relationships may be the key to future market
leadership in insurance. Certainly they would not mind
hearing from their insurance providers more often.
Not that strengthening relationships will be easy. Indeed,
survey results clarify that insurance customers are unique in
many ways. Traditional assumptions of loyalty and advocacy
seem not to fully apply in insurance, and policyholders
behave in often unpredictable ways. Thus, the imperative for
insurers is to understand customers at a far more nuanced
level than they do currently, and to seek new and different
ways to engage with them.
Shaun Crawford
Graham Handy
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Americas
Asia-Pacific
EMEIA
Japan
24,000
consumers
4
30
countries
50
questions
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Product types throughout this report: life includes life insurance and annuities/
pensions. Non-life includes auto insurance and home insurance (both building and
contents/renters insurance).
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Introduction
EYs Global Consumer Insurance Survey 2014 confirms that strengthening customer
relationships and achieving customer centricity in core operations have become strategic
imperatives for the insurance industry across product classifications, geographies and
the full range of operating models.
1.
2.
3.
4.
5.
Insurers have so
few interactions
with their
customers that
each one becomes
a critical moment
of truth.
Consumers want
more frequent,
meaningful and
personalized
communications.
As consumers
embrace digital,
insurers must rethink
their distribution
strategies and
partner relationships.
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Key finding 1:
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Figure 1: Level of trust (percentage of consumers citing complete trust and moderate trust) by type of business
Global
total
Insurance
companies
North
America
70%
65%
Supermarkets
84%
Online
shopping
sites
78%
78%
Banks
82%
73%
Car
manufacturers
80%
64%
Pharmaceutical
companies
68%
55%
89%
Europe
UK
61%
87%
78%
61%
84%
63%
LATAM
53%
80%
89%
55%
Middle
East/India
Asia
Australia
53%
Japan
81%
79%
70%
87%
80%
83%
78%
83%
77%
80%
78%
72%
73%
94%
92%
71%
82%
80%
72%
76%
90%
86%
79%
74%
85%
69%
83%
76%
67%
69%
72%
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Key finding 1:
High turnover and low trust signal
serious relationship issues.
10
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Global auto
Global home
50%
Cost/terms
47%
Policy benets/coverage
42%
Frequency/relevance of communication
28%
28%
48%
29%
38%
59%
57%
39%
16%
34%
26%
31%
26%
Research I conducted
25%
24%
Brand reputation
24%
17%
22%
18%
26%
17%
26%
14%
20%
30%
11%
20%
26%
25%
29%
Life
products
Non-life
products
Independent Dedicated
broker
agent
Direct from
Employer
the insurance
company
Bank
47%
45%
Easy to understand,
clear communication
43%
44%
43%
40%
46%
44%
46%
37%
42%
40%
45%
43%
44%
42%
43%
35%
40%
41%
39%
42%
42%
40%
39%
Financial stability of
insurance company
36%
43%
50%
30%
36%
35%
36%
33%
33%
32%
Responsive
33%
29%
37%
43%
34%
28%
40%
32%
40%
38%
54%
33%
36%
40%
32%
35%
31%
39%
31%
47%
49%
27%
32%
23%
52%
37%
40%
31%
29%
*Participants were asked to indicate the five most important characteristics regarding
their relationship with their purchase source (for example, insurer or broker).
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
11
Key finding 1:
High turnover and low trust signal
serious relationship issues.
12
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Able to conduct
business on
smartphone/tablet
Relative satisfaction
Average satisfaction
Access to loyalty
bonus/special deals
Financial stability of
insurance company
Strong brand
reputation
Responsive
Home-based
call center
24/7 access
Understood me and
my preferences
Choices and
exibility of benets
Third-party professional
evaluations
Third-party consumer
evaluations
Provided information
the way I wanted it
Easy to understand,
clear communication
Vulnerabilities
(below average satisfaction,
and relatively high importance)
Dedicated agents
13
Key finding 1:
High turnover and low trust signal
serious relationship issues.
Actions
You cant keep the policy forever, but you can keep the
relationship in your grasp
14
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
15
Key finding 2:
16
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Figure 5: Global policy closure rates (attrition) within last 18 months, by advocacy level (likelihood to recommend)
Total
Attrition
Closed a policy in the last 18 months
58% 59%
38%
37%
38%
Very Unlikely
Unlikely
Neutral
Likely
0%
25%
50%
75%
Very Likely
100%
Advocacy
Likelihood to recommend
Figure 6: Global policy closure rates (attrition) within last 18 months, by advocacy level (likelihood to recommend)
life vs. non-life
Life
52%
44%
41%
Attrition
Closed a policy in the
last 18 months
Attrition
Closed a policy in the
last 18 months
46%
71%
35%
0%
25%
50%
75%
Advocacy
Likelihood to recommend
100%
Non-life
67%
39%
35%
32%
0%
25%
50%
75%
100%
Advocacy
Likelihood to recommend
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
17
Key finding 2:
Just because they leave you doesnt
mean they dont love you.
Figure 7: Global policy closure rates (attrition) within last 18 months, by advocacy level (likelihood to recommend)
mature markets vs. developing markets
Mature markets
55%
Attrition
Closed a policy in the last 18 months
51%
28%
21%
19%
Very Unlikely
Unlikely
Neutral
Likely
Very Likely
0%
25%
50%
75%
100%
Advocacy
Likelihood to recommend
Attrition
Closed a policy in the last 18 months
63%
Developing markets
67%
47%
47%
47%
Very Unlikely
Unlikely
Neutral
Likely
Very Likely
0%
25%
50%
75%
100%
Advocacy
Likelihood to recommend
18
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
19
Key finding 2:
Just because they leave you doesnt
mean they dont love you.
Actions
People who leave may still like you take action now to
leverage their advocacy later
Reward advocacy
The nature of actions required will clearly differ depending on the channel strategy companies have adopted, so insurers may need to work through or with
their business partners to achieve these objectives.
20
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
21
Key finding 3:
22
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Figure 8:
Figure 8: Customer interactions with their current insurers during last 18 months global totals*
Global mature markets
Global total
None
44%
At least
one 56%
None
56%
At least
one 44%
None
30%
At least
one 70%
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
23
Key finding 3:
Insurers have so few interactions with their customers
that each one becomes a critical moment of truth.
Figure 9: Percentages of consumers reporting a moment of truth - by key segments, products, markets and
channels, globally
Participants were asked, In the past 18 months, did you have a positive or negative experience that fundamentally changed
how you thought of your provider/purchase source?
70%
58%
58%
50%
61%
67%
Positive outcome
53%
45%
Negative outcome
Neutral
Global
total
Current
Former
customers customers
62%
53%
37%
North
Europe
America
24
Global life
66%
Global
auto
Middle
Asia
East/India
Developing
markets
65%
40%
LATAM
Mature
markets
68%
39%
UK
Global
home
Australia
61%
57%
55%
57%
Direct
Employer
Bank
44%
Japan
Broker
Agent
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
25
Key finding 3:
Insurers have so few interactions with their customers
that each one becomes a critical moment of truth.
26
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Figure 10: Reasons for contact that created the moment of truth and outcomes across different phases of the
customer relationship life cycle
Figure 11:
Claims
Obtain information
about the policy
10%
Follow up on the
status of a claim
10%
9%
Close or renewal
Inquire about
replacing an
existing policy
27%
9%
81%
28%
5%
Inquire about
switching a policy from
another provider
68%
Dispute the
resolution of a claim
Update information,
such as my address
58%
10%
Obtain a new policy
31%
47%
9%
Questions about a
premium increase
27%
18%
Positive
66%
81%
32%
10%
6%
22%
9%
Neutral
7%
81%
66%
73%
Negative
Figure 12:
19%
11%
20%
18%
19%
25%
29%
25%
26%
22%
25%
18%
22%
7%
11%
Global
developing
Global
life
23%
19%
20%
19%
20%
21%
30%
26%
26%
26%
20%
27%
24%
26%
22%
21%
19%
20%
15%
21%
9%
9%
8%
9%
9%
11%
10%
Global
auto
Global
home
Broker
Agent
Direct
Employer
Bank
21%
26%
30%
25%
20%
10%
Global
total
22%
16%
Global
mature
Positive outcome,
sales and non-sales
29%
22%
19%
Positive outcome,
sales only
Positive outcome,
non-sales only
Negative outcome
23%
27%
Neutral
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
27
Key finding 3:
Insurers have so few interactions with their customers
that each one becomes a critical moment of truth.
Actions
28
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Actions
Broaden the value proposition to create frequent and twoway opportunities to connect for example, establishing
affinity groups, customer clubs or rewards programs
for specific communities and segments can boost
engagement.
Offer supplemental information on topics of interest
(like household safety or safe driving tips, or comparison
data for similar customers) to standard communications
(like policy statements) to demonstrate interest in wider
consumer needs.
A balance must be struck between the need to drive positive Identify where personal interaction creates most value in
the relationship and operationalize this. Make the hard
outcomes with the need to standardize and industrialize
decisions, based on costs and ROI regarding what you are
sales and service interactions. Insurers who can correctly
prepared to offer and to whom. The decision will differ by
strike the right balance will be the future winners.
customer segment, product and market but, the criteria
must be consistent.
The nature of actions required will clearly differ depending on the channel strategy companies have adopted, so insurers may need to work through or with
their business partners to achieve these objectives.
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
29
Key finding 3:
Insurers have so few interactions with their customers
that each one becomes a critical moment of truth.
30
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
31
Key finding 4:
32
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
34%
55%
56%
67%
61%
68%
46%
30%
General
information
45%
43%
45%
27%
26%
40%
27%
29%
43%
31%
44%
44%
27%
23%
24%
Special
deals/promotions
27%
13%
Policy updates
18%
38%
26%
27%
10%
General
information
30%
23%
18%
9%
Special
deals/promotions
17%
9%
Policy updates
Never
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
33
Key finding 4:
Consumers want more frequent, meaningful
and personalized communications.
Figure
Figure
13: 13: Consumer satisfaction with outbound communications
45%
45%
46%
46%
46%
43%
48%
47%
51%
46%
48%
44%
48%
36%
20%
14%
Global
total
Broker
Very satised
14%
Agent
13%
11%
21%
10%
13%
North
Europe
America
19%
UK
12%
17%
11%
14%
4%
LATAM Middle
Asia Australia Japan
East/India
Satised
Figure 14: Percentages of consumers preferring semi-annual communications vs. delivery of actual communications
Figure
by16:
region
68%
52%
45%
40%
38%
29%
45%
62%
60%
51%
50%
45%
34%
23%
12%
North
America
Actual
34
Europe
UK
LATAM
Middle
East/India
Asia
Australia
Preferred
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
16%
Japan
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
35
Key finding 4:
Consumers want more frequent, meaningful
and personalized communications.
Actions
The nature of actions required will clearly differ depending on the channel strategy companies have adopted, so insurers may need to work through or with
their business partners to achieve these objectives.
36
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
37
Key finding 5:
38
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Figure 15: Consumer use of channels/information sources for different types of transactions and inquiries
Figure 16:
4%
3%
28%
33%
34%
41%
44%
In person
Website
Phone
Mobile app
11%
39%
47%
11%
1%
4%
4%
26%
33%
10%
22%
24%
10%
58%
42%
39%
35%
34%
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
General information
about policy
40%
20%
30%
1%
4%
3%
Increase coverage
21%
7%
5%
Changes to
personal details
32%
1%
4%
2%
File claim
Changes to
portfolio
45%
1%
5%
2%
Options to
reduce
premiums
37%
51%
38%
1%
5%
3%
Researched
policies to
replace current
11%
20%
1%
7%
3%
Sought nancial
advice
22%
Decrease
coverage
15%
Reported a
problem with
policy
40%
27%
44%
34%
10%
5%
4%
To learn about
other
non-insurance
product offerings
20%
1%
2%
5%
Changes how
policy is paid
1%
6%
1%
2%
3%
9%
Changing
vehicles on
policy
1%
7%
8%
39
Key finding 5:
As consumers embrace digital, insurers must rethink their distribution
strategies and partner relationships.
Figure 16: Percentage of consumers who would consider using these contact methods (assuming they were available)
when interacting with their insurance company
Inquire
about new
insurance
policy
Questions
about an
existing
policy
Seeking
financial
advice
Assistance
with a claim
Researching
different
types of
insurance
Renewing
Managing
your current your policy
policy
Cancel my
policy
Web chat
41%
40%
29%
29%
28%
27%
22%
14%
41%
41%
33%
34%
35%
40%
35%
28%
24-hour
telephone
hotline
38%
48%
34%
51%
31%
40%
36%
35%
Mobile app
25%
26%
22%
23%
27%
27%
20%
14%
Interactive
support
23%
26%
24%
26%
28%
27%
21%
12%
Video
tutorials and
guides
22%
22%
23%
23%
28%
20%
15%
9%
None of the
above
15%
12%
22%
14%
17%
15%
19%
31%
40
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
41
Key finding 5:
As consumers embrace digital, insurers must rethink their distribution
strategies and partner relationships.
42
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Actions
43
Key finding 5:
As consumers embrace digital, insurers must rethink their distribution
strategies and partner relationships.
44
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
45
Conclusion:
46
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
Reimagining customer relationships | Key findings from the EY Global Consumer Insurance Survey 2014
47
Contacts
Shaun Crawford
Global Insurance Leader
scrawford2@uk.ey.com
+44 0 20 7951 2172
Graham Handy
Global & EMEIA Insurance Customer Leader
ghandy@uk.ey.com
+44 0 20 7951 8173
Shona Burns
Global Insurance Customer Advisor
shona.burns@au.ey.com
+61 424 280 242
Shaun Warren
Asia Insurance Customer Leader
shaun.warren@sg.ey.com
+65 6309 8304
Walter Poetscher
Australia Insurance Customer Leader
walter.poetscher@au.ey.com
+61 2 9248 5145
Kaenan Hertz
US Insurance Customer Leader
kaenan.hertz@ey.com
+1 212 773 5988
James Littlewood
LatAm Insurance Leader
james.littlewood@ey.com
+1 305 415 1849
Malcolm Rapson
Africa Insurance Sector Leader
malcolm.rapson@za.ey.com
+27 21 443 0288
Rohan Sachdev
India Insurance Leader
rohan.sachdev@in.ey.com
+91 226 192 0470
Gordon Bennie
MENA Financial Services Leader
+973 1751 4717
Nobuaki Nakata
Japan Managing Director
Financial Advisory Services
nobuaki.nakata@jp.ey.com
+813 3503 1100
Robin B. Sojcher
Global Insurance Marketing Leader
robin.sojcher@ey.com
+1 212 773 0384