Digital driving massive change in customer expectations
TORONTO, Oct. 22, 2013 /CNW/ - Insurers - slow to embrace digital - are
missing the mark on delivering enriching experiences that customers now
expect, according to an EY survey launched today.
"Insurers are being held back," says Doug McPhie, EY partner and
Canadian Insurance Leader. "Internal factors like legacy technology are
hindering their digital progress — to the detriment of the consumer
and, ultimately, the bottom line."
In the Americas, 96% of insurers cite legacy technology constraints as a
major impediment to growth.
"Insurers potentially have a wealth of data at their fingertips," adds
McPhie. "But without the right analytics, they're missing a big
opportunity to better understand their customer, and improve their
EY's survey, Insurance in a digital world: The time is now, finds only 1% of insurers currently offer online rewards, discounts,
apps or 'live' website assistance. They also need to embrace the mobile
and social media wave.
"Insurers acknowledge their current low levels of digital maturity, and
they know they need to take action," adds McPhie. "They have high
digital ambitions, but they're still failing to communicate at critical
times and missing opportunities to engage with their customers."
The survey shows that the less advanced life sector is currently
spending more on its digital strategy than the non-life sector.
Seventy-nine percent of non-life companies spend less than 10%; in
contrast, 68% of life insurers spend less than 10%. However, life
insurers seem less concerned (46%) than non-life companies (60%) that
customers will ultimately leave.
McPhie says, for both life and non-life insurers, digital is all about
retention through improved customer experience.
"They need to deliver on new customer expectations, or risk being left
behind," he adds.
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SOURCE: EY (Ernst & Young)
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