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“Insurers have to look beyond other insurance companies as their competitors, and instead include bigtechs and other new non-traditional players, which are often offering a superior customer experience,” said Anirban Bose, CEO of Capgemini’s financial services strategic business unit and member of the group executive board. “Forming scalable relationships with insurtechs will help insurers digitise faster and more efficiently, deepening their customer relationships and helping them to fend off these new entrants.”
In particular, the report highlighted COVID-19’s influence – noting that while life and health experienced a spike in claims, travel and auto noted a decline. However, all insurance companies have seen changes in customer interaction and engagement and even with 90% of incumbents able to conduct business remotely, most still felt the impact of COVID-19 on customer retention and acquisition. Indeed, that number has only increased over the course of the pandemic, with 61% of insurers noting that the pandemic had impacted customer acquisition in July compared to 57% in April.
It was noted too, that BigTechs have raised the bar for customer experience during the pandemic and policyholders’ willingness to buy insurance from these firms has leapt from 17% in 2016 to 44% in April, 2020. As such, insurers need to focus on …
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