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Customer Centricity - The key to differentiation and growth in the P&C insurance industry.

Customer Centricity - The key to differentiation and growth in the P&C insurance industry.



Notwithstanding difficult business conditions, P&C insurers ...

Notwithstanding difficult business conditions, P&C insurers
recognize that to achieve growth they have to act decisively.
Customer bases have become less dependable than ever,
while new technologies are giving early adopters a big
competitive advantage. The net result is major shifts in
market share for those which act decisively, along with
other benefits such as increased distribution efficiency.



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    Customer Centricity - The key to differentiation and growth in the P&C insurance industry. Customer Centricity - The key to differentiation and growth in the P&C insurance industry. Document Transcript

    • Accenture ResearchCustomer-centricity—the keyto differentiation and growthin the P&C insurance industry
    • Customer-centricity:more than a mindsetThe hope that an economic rebound is around the cornernow seems like wishful thinking. Demand for insurance islikely to remain soft for the foreseeable future, and pressureon premiums is unlikely to ease. While cost management isas crucial as ever, profitable growth has become a priority formost carriers. But achieving growth won’t be easy—withconsumers more fickle than ever, more demanding, andmore able to compare what is being offered, it will takesomething special to retain and sell to existing customersand to attract new ones.The findings of a recent Accenture commoditized products which vie A carefully crafted strategy is neededconsumer survey1 neatly sum up the to be the cheapest on the market. to provide the differentiated, tailoredgrowth challenge facing insurers: While this might attract new customers experience which is the defining and generate new revenue, it does so feature of customer-centricity. The• 26 percent of customers say they at the cost of the carrier’s operating first step in this process is to decide have no loyalty to their insurance margins, its combined operating what this special experience should providers. ratio and its return on equity. And consist of. To gain a better understanding• Up to 32 percent say they are likely it only works until the competition of how customer attitudes, expectations to stop doing business with at least follows suit. and behavior with regard to insurance one of their insurance providers “in have changed—the kinds of experience the next 12 months”. Clearly, an alternative approach is they are seeking today—Accenture needed, one that meets the growing recently commissioned an extensive• 26 percent would definitely shop demands of customers, positions the worldwide survey2. And to learn how around for better deals. carrier prominently within a poorly insurers are responding to these changes,• 75 percent believe there is no differentiated marketplace, and allows we undertook a separate survey of significant difference in the products it to command a premium for its more than 100 C-level insurance and services offered by insurance products. This approach is characterized executives3. Together, the findings companies. by a move from conventional product- reveal an industry in the process of centricity toward customer-centricity. reinventing itself.Weak loyalty, a lack of differentiation It entails much more than a change inand a growing reluctance to accept mindset, though, and the majority ofindifferent service are driving customers insurers are constrained from adoptinginto the market. Once there they are, it because their operating model,to an increasing degree, buying on technology, infrastructure and peopleprice—a trend accelerated by the are aligned with their product portfolioproliferation of simpler, more rather than with their customers.2 | Customer-centricity—the key to differentiation and growth in the P&C insurance industry
    • Survey finds opportunities exist,but customer focus is vitalThe 2011 Accenture Consumer-Driven shifts in consumer attitudes and • A strong analytics capability willInnovation Insurance Survey comprised behavior, the actions they are taking be invaluable in gaining a deepertwo separate but complementary to respond to them, and the challenges understanding of customers’ variousresearch studies, targeting consumers they face in providing an innovative, needs and addressing them inand insurance executives respectively. exceptional customer experience. targeted ways. • Innovative mobile and otherThe consumer study was based on Among the most important implications next-generation channels will beresponses from 7,010 insurance of the findings of the two surveys are: essential to attracting and retainingpolicyholders in 13 countries: eight especially younger customers.in mature markets and five in emerging • Profitable growth will be moremarkets. The aim was to determine how challenging than before as customers • The ability to rapidly create, modifycustomers feel about their insurance become increasingly demanding and launch products and servicesproviders, and what their expectations and self-sufficient. that meet—or anticipate—customers’are regarding the products and • However, there are clear opportunities evolving needs will be a decisiveservices they provide. In particular, for insurers that become more competitive advantage.we wanted to know their views on customer-centric and use consumer- • Effective, pioneering digital marketinginnovation with regard to distribution driven innovation to deliver a and distribution will be hallmarks ofchannels and personalization. distinctively more tailored customer the market leaders. experience.The executives study consisted of • To deliver this experience, carrierstelephonic interviews with 119 C-level need to review their operating model,executives at insurance companies technology and infrastructure, andin 28 countries. The purpose of align their sales and service peoplethe research was to ascertain the with their different customerimportance that insurers place on segments. 3
    • Consumers in a stateof fluxOur latest insurance consumer survey2, supported by otherrecent research1, confirms what many property & casualtyinsurers are experiencing: loyalty has weakened, expectationshave risen, and growing numbers of customers expect tochange their provider to find what they are looking for.Figure 1. Customers have high expectations of their insurance providers.Q: How important is it that your insurance provider … ?Provides clear and easy to understand information on policies 35% 62% 97% Important Very importantProvides prompt and effective service/answers requests in a timely manner 36% 61% 97%Gives you access to the information you need whenever you need it 43% 53% 96%Makes you feel they understand your needs and help you face the 44% 49% 93%challenges of lifeProvides you with the ability to compare rates and switch plans 47% 42% 89%Proposes updating your policies when your situation changes 49% 39% 88%Provides a wide range of services available online 47% 37% 84%Provides you with personalized information 48% 35% 83%Makes you feel you are not anonymous 44% 33% 77%The disaffection of insurance customers to commoditization and the rapid is every indication that this shift willis starkly illustrated in Figures 1 and adoption, in certain markets, of continue: Figure 4 shows that the2. The first contains a daunting list of aggregators. The apparent conflict use of mobile devices to engage withdemands, while the second shows the is resolved by recognizing that the insurance companies is likely to increaseextent to which insurers are failing to market is dividing into standardized, by roughly 25 percent over the nextsatisfy them. This alone explains why low-cost products and more customized, two years. Adding impetus to the trendso many customers regard themselves advice-led products which can is the emergence of mobile “ecosystems”,as being “in the market” and on the command higher premiums. Customers comprising various related servicelook-out for a carrier that can meet may prefer the former for, perhaps, their providers, which are likely to be potenttheir expectations. Figure 2 also serves motor insurance but the latter for their drivers of cross-selling.as a “playbook” for innovative carriers more complex property insurance.that are evaluating the areas of invest- There is no disputing that the insurancement likely to provide the greatest Added to these trends are powerful marketplace has changed forever.differentiation and customer satisfaction. and permanent shifts in the ways The uncertain future poses grave consumers prefer to manage their challenges for P&C carriers that lackAn indication of the strength of affairs and interact with individuals the agility to respond appropriately,customers’ convictions is to be found and organizations that matter to but also significant opportunities forin Figure 3. Between one and two them. New tools and channels have those that can make the transitionthirds (depending on age) say they rapidly become influential, giving rise from product-centricity to customer-would be willing to pay a premium to entirely new forms of interaction. centricity, and can differentiatefor insurance products that are more In insurance, the trend is not so much themselves by providing a uniquelyrelevant to their needs. On average, a transition from traditional to new tailored customer experience.they would be prepared to pay 11 channels such as the Internet andpercent more than they currently do. mobile, but rather a growing relianceThis finding appears to be at odds with on a diversity of channels—differentthe rise in price-sensitivity, the trend channels for different purposes. There4 | Customer-centricity—the key to differentiation and growth in the P&C insurance industry
    • Figure 2. There is a gap between what customers expect of insurers and what they believe they receive. 62% 61% 53% 49% 42% Very important 39% 37% 32% 35% 33% that insurers 27% 29% provide 24% 23% 24% 23% 21% 21% Very satisfied with what insurers provideProvides clear Provides Gives you Makes you feel Provides you Proposes Provides a Provides Makes youand easy to prompt access to the they under- with the ability updating your wide range you with feel youunderstand and effective information stand your to compare policies when of services personalized are notinformation service/answers you need needs and help rates and your situation available information anonymouson policies requests in a whenever you face the switch plans changes online timely manner you need it challenges of lifeFigure 3. Many insurance customers are willing to pay—and to pay more—to get more relevant products.Q: How much more would you be willing to pay for insurance that is more relevant to your needs than your current policies? How much more? 3% 30% more Willing to pay more 70% 62% 48% 38% 33% 5% 25% more 11% 20% more Not willing to pay more 10% 15% more 30% 67% 62% 10% more 52% 38% 41% 30% 5% more 18-24 25-34 35-44 45-54 55+ Those willing years years years years years to pay morePremium respondents 12,0% 11,5% 10,5% 9,5% 9,8%are willing to pay Average premium: 11%Figure 4. Customers’ use of mobile devices to engage with their insurance providers is likely to increase.Q: Have you used mobile devices to deal with your insurance provider over the past two years, and how do you think your use of thesedevices will change in the next two years? 61% Have used mobileTo get information on insurance products/services devices in the 74% past 2 years 60% Will use mobileTo perform insurance operations 73% devices in the next 2 years 58%To apply for an insurance product/service 70% 5
    • Insurers need to givecustomers a tailoredexperienceIn their pursuit of organic growth, P&C insurers face aquandary. Competing on price can be costly and short-lived. Similarly, the competitive advantage gained fromproduct innovation is usually fleeting. Personalized adviceis expensive and not always effective—only 16 percent ofconsumers regard their insurer as their preferred providerof financial advice, and 34 percent believe insurers are onlyinterested in selling as much as possible4.An approach is needed which addresses more than banks—need to create more Access to new sources of data, bothcustomers’ clearly stated preference touch points with their policyholders internal and external, and improvementsfor more relevant, convenient and over the duration of the contract, to in data consistency and distribution,innovative products, services and build differentiated relationships and allow for much richer insights. These,channels. By taking a leaf out of provide meaningful customer experiences. together with advances in predictiveApple’s book and focusing on the analytics, help answer the question:overall customer experience, carriers At a time when customers are clamoring “so what?” For insurers, this translateswill succeed in creating a more durable for something special, only a small into “how will my customer behave,competitive advantage, one that minority of insurers rate themselves what are his or her interests, and whatallows them to charge a premium as front-runners in the provision of will happen?”while building customer loyalty. a differentiated, tailored customer experience. This despite the fact that Predictive analytics also allows carriersMost insurers recognize the need to 95 percent believe growth will be to segment their customers intoprovide a more meaningful customer elusive if they fail to provide a special homogenous groups sharing similarexperience—more than 90 percent experience (Figure 6). traits, needs and expectations. This inregard rising customer expectations turn enables them to develop differentas an important or critical challenge More than a numbers game strategies, or “treatments”, optimizedas they strive for organic growth for specific customer needs, attitudes(Figure 5). Other priorities include Of course, the first step in treating and intentions. Predictive analytics ismanaging customers’ growing reliance customers as if they are special is particularly valuable in determiningon independently sourced information knowing what would make them feel which customer characteristics are mostto make their buying decisions, and special. Insurers have always had significant and represent the bestmaking policy information more large amounts of demographic and opportunities for differentiated treatment.readily available via preferred channels. transactional data about their customers,In addition P&C insurers—not as much as well as the analytics to make senseas their life counterparts but certainly of it. However, most of this was used to answer the question: “what happened?”6 | Customer-centricity—the key to differentiation and growth in the P&C insurance industry
    • Figure 5. Rising customer expectations pose a serious challenge for insurers.Q: What are the key challenges that your company will face in attracting and retaining customers in the next 3 years?Customers are becoming better informed and more self-sufficient Important 54% 39% 93%with regard to researching and buying insurance CriticalCustomers increasingly expect all information to be available at anytime and via all channels (e.g., Internet, agent) 50% 43% 93%Customers have higher expectations for customer service (e.g., shortwait times) 39% 52% 91%Customers represent an increasingly diverse base with distinct needsand preferences 55% 30% 86%Customers are becoming more price-sensitive 45% 39% 84%Customers increasingly expect to be able to use new technologies todeal with insurance providers (e.g., mobile devices, digital applications) 43% 39% 82%Customers increasingly want a sense of personal connection with 46% 34% 80%their providersCustomers are increasingly using new modes of communication (e.g.,social media, consumer blogs) to get information about insurance 41% 36% 77%providers, products and servicesCustomers increasingly expect products that are customized to their 45% 29% 73%specific needs (e.g., bundled products)Customers increasingly expect more innovative products and features 48% 21% 70%Figure 6. Most P&C insurers struggle to achieve the differentiation which is crucial to growth.Q: How does your company perform compared to your competitors? Q: For insurers seeking organic growth, how important is it to give customers a differentiated and exceptional experience? Weakest Average Best 7%Delivers continuous innovation in theprovision of products and services 57% 36% Critical 57%(including digital services) 2%Personalizes information and adviceaccording to customers’ needs 68% 30% 7%Tailors products and services to customers’needs (e.g., bundle of products and services) 66% 27% 95%Provides access through multiple channels Important 38%including mobile devices 27% 48% 25%Provides access to customer informationwhenever they need it 16% 59% 25% Not reallyProvides real-time information and important 5%updates to customers 20% 61% 20%Delivers a seamless experience across 16% 66% 18%channels Among the best in the industry: you are advanced or leading edge Average: you are in line with the performance of the majority of your peers Among the weakest in the industry 7
    • Figure 7. The average P&C insurer has invested $11m in analytics, and plans to increase this amount.Q: How important is it for your company Q: How much has your company invested Q: How will your company change itsto invest in analytics in order to be a top in analytics at the global level (including investment in the next 3 years to improveperformer in your industry in the next internal resources) in the last 3 years? its analytics capabilities?3 years?Critical 43% Significant increase 27% Average $11.4 m (>20% more than 3 years ago) Moderate increase 45% 72%Important 55% 98% No change 25%Not really important Moderate decrease 3% 2%Forty-three percent of P&C insurance Joining the move to mobile that they invest in mobile capabilitiesexecutives believe it is critical that all along the value chain. The average The extent to which consumers, almosttheir organization improve its analytics investment over the past three years overnight, have changed the wayscapability in the next three years was less than $9 million, a figure in which they interact with friends,(Figure 7). They have, on average, which eight out of ten executives acquaintances and suppliers hasinvested less than $12 million over believe needs to increase (Figure 9). been well documented. P&C insurersthe past three years—although 72 have little choice but to adapt theirpercent say this figure needs to be But it won’t be easy—the obstacles to channels and processes, failing whichincreased. This is consistent with becoming a leader in mobile access they will simply be ignored. AccentureAccenture’s ongoing research into and service provision are many and research shows that well over half ofthe characteristics of high performance daunting (Figure 10). In addition to all customers have used their mobilebusinesses. Our surveys4 have revealed those listed is simply the challenge devices for insurance purposes in thethat robust analytical capabilities are of deciding which of the bewildering past two years, and more than 70essential to success, and that top- array of mobile devices, channels, percent expect to do so in the nextperforming companies are five times applications and services that are two years (Figure 4). In spite of thismore likely than lower-performing transforming the industry are likely overwhelming trend, Accenture’scompanies to have identified analytical to meet customers’ needs and deliver multi-channel distribution survey5capabilities as a key element of their a return on investment—and then found that less than one in five insurersstrategy. They also show that companies committing to the strategy. However, provide services geared for mobilethat invest heavily in advanced analytical given the growing importance of mobile devices (Figure 8).capabilities outperform the S&P 500 media to customers of all ages andon average by 64 percent, and recover backgrounds—in emerging and developed This is not due to ignorance of themore quickly from economic downturns. markets alike—this is a challenge wave of change confronting them. which any successful P&C carrier must No less than 87 percent of insurers overcome, and an opportunity it must recognize it is important or critical convert to growth.8 | Customer-centricity—the key to differentiation and growth in the P&C insurance industry
    • Figure 8. Most insurers—even the high performers—have been fairly slow to adopt mobile technologies.% of insurers currently providing services on mobile devices18% 18% 17% 18% 18% High performers*17% 12% 9% 9% 10% 7% Average 8%Information on Quotes Underwriting Claims Policy Accountproducts/services & billing management management*High performers: the 20% of the sample with the highest growth rate over the past 3 yearsFigure 9. The majority of P&C insurers believe it is important to increase their investment in mobile capabilities.Q: How important is it for your company Q: How much has your company invested Q: How will your company change itsto invest in mobile capabilities along the in mobile capabilities at the global level investment in the next 3 years to improvevalue chain to be a top performer in your (including internal resources) in the last its mobile capabilities?industry in the next 3 years? 3 years?Critical 32% Significant increase 45% Average (>20% more than $8.7 m 3 years ago)Important 55% 87% 84% Moderate increase 39% No change 16%Not really important 11%Not important at all 2%Figure 10. To develop a sophisticated mobile capability, insurers need to improve their skills, systems and processes.Q: What are the key challenges facing your company as it strives to develop superior mobile capabilities in the next 3 years?Developing functional, technical and people skills Important 48% 38% 86% challenge Very importantLeveraging flexible and extendable systems 55% 29% 84% challengeDeveloping and implementing seamlessly integrated processes 46% 34% 80%Integrating mobile access and sales points across personal andtechnology-based channels 52% 27% 79%Educating customers (i.e., developing entry services to createthe habit of use) 45% 32% 77%Addressing customers’ concerns regarding security and safety 34% 32% 66% 9
    • 10 | Customer-centricity—the key to differentiation and growth in the P&C insurance industry
    • Taking a leaf out of the mobile playbookWhen assessing how to approach the To sustain a mobile program over the • Enable growth with a flexiblemobile opportunity, a natural place to long run requires the vision to nurture architecture—adopt an approachstart is to look at the strategies others the channel, commitment from both that allows you to enter the markethave followed to capture market share. the business and technology sides of and adapt as you grow, achievingP&C insurers should look beyond the organization, a solid technology a significant market positionwhat their competitors are doing, platform, and an innovation mindset over time. Innovate incrementally,and evaluate the innovations of other that drives new features and increasing functionality and serviceleading players—such as banks, mobile functionality. Accenture’s research6 complexity over time.operating system vendors and start-ups into financial institutions that have • Generate revenue through customerthat are reshaping entire industries successfully launched mobile programs engagement—focus initially on drivingthrough mobile computing. They found remarkable similarities in their adoption and customer engagement,should also look beyond what they paths to success. Some of the key then leverage these to reach newcan achieve on their own, exploring elements they have in common are: customers and to up- and cross-sellthe possibilities that a mobile ecosystem to existing ones.offers. By partnering with other key • Educate customers—make sure theyplayers, such as a bank or online understand your mobile offering • Execute with the right partner—bepayment service like PayPal, a retailer, and feel it is easy to take advantage wary of point solutions which maya telco operator etc., the insurer of it. Use your other channels to become obsolete, which aren’tbecomes part of a mobile initiative inform customers about it, focusing tightly integrated with otherthat gains wide adoption more quickly, initially on adoption rather than technologies within a holisticoffers greater functionality, and opens cross-selling. channel strategy, and which requiredoors to large numbers of new customers. • Keep it relevant and convenient— costly and time-consuming multi- with a growing number of options vendor management. to choose from, customers have little tolerance for slow or ill- conceived applications. 11
    • 12 | Customer-centricity—the key to differentiation and growth in the P&C insurance industry
    • Innovation—accelerating the journeyto customer-centricitySo what is the insurance customer Coaching Usage-Based Insurance • Small farmers in Kenya can buy croplooking for? There is no single answer, Service Model (CUBISM), goes one insurance by photographing a barcodebecause customer needs cannot step further by monitoring driving on a bag of fertilizer or seed, andbe homogenized into convenient conditions (the speed limit, prevailing then paying their premiums via thecategories that correspond to particular weather, the state of the road, M-Pesa mobile banking system.channels. Certainly, price-sensitivity is etc.) and then warning the driver • Virtualization is changing the wayincreasing—84 percent of P&C insurers when his or her driving exceeds set contact centers operate. Ratherrate this as an important or critical parameters. Premiums are based on than locating hundreds or evenchallenge (Figure 5). At the same time a detailed scorecard, which shows thousands of dedicated call centeras wanting to pay less, most customers the driver where improvements will personnel under one roof, customerare calling for more innovation and result in a reduced premium. inquiries can be routed via IPmore choice. Some may wish to conduct • Mobility is no longer confined to telephony and converged com-transactions without having to speak communication. The development munications to available resourcesto another human being, while others of devices such as the iPad, netbooks in branches or other locationsmay require personal service and and other forms of tablet, has according to demand. By ensuringadvice. Many insurers are responding reinforced expectations of ubiquitous customers, wherever they may be,to these diverse and changing demands service availability. This is just as can be directed to the appropriatethrough innovation, which is trans- relevant for agents as it is for resources, the contact center can beforming the industry in a multitude customers—Accenture has developed transformed from being primarily aof ways: an iPad application which equips source of simple advice to a much• To meet the conflicting need to keep agents on the move with everything more potent insurance sales channel. the price of mass-market products they need to improve their efficiency • This can be taken further by using as low as possible while simultaneously and their close rate, from time interactive video conferencing to providing more meaningful advice, a management tools to product connect customers with product number of insurers are exploring literature, sales documentation and specialists who can be located assisted decision-making of the real-time contact with the home office. anywhere yet still provide face-to- kind Amazon.com uses extensively. • Insurers are recognizing that in face personal advice. An integrated Prospective customers who research a world increasingly dominated document sharing function allows products online would provide some by personal networks they need the customer, in an agency office, and personal information, allowing the to raise the frequency of their the remote agent to view relevant insurer to advise them that “people customer touch points and adopt a literature together. When the customer like you tend to buy the following more human face. Social media help accepts the proposal, the adviser is products” or “they tend to make the them achieve both. Carriers that able to send the appropriate forms following financial decisions”. appear on their customers’ social directly to a networked printer in• Insurance being one of those products networks, in their e-mail, and in the agency for the customer to sign. which may seem unnecessary until their searches by virtue of search- The documents can then be scanned the danger looms, carriers have engine optimization and pay-per- and sent back to the adviser to developed location-based systems click campaigns, are creating an complete the transaction. which synchronize the right offer extended network of touch points at the right time, place and price. that can significantly improve Rapidly evolving technology is creating Examples include luggage insurance both reputation and sales. Having possibilities for rich and interactive sent to travelers’ mobile phones as a presence on social networks also customer experiences across all channels, they arrive at the airport, and accident helps humanize the brand, and does with customer preferences driving the cover for skiers as they queue to take not necessarily require an intense individual channel mix to suit their the lift to the top of the mountain. campaign—insurers have found that lifestyle and circumstances. But making occasionally deploying a personal channels more engaging and personalized• Pay-as-you-drive auto insurance tweet or answering a query on requires a new approach to architecture calculates premiums according to Facebook shows their customers that enables the single view of the the distance traveled and, in some that they are open to communication customer, personalization and seam- cases, where and when the vehicle and actively building a community. lessly integrated channel experiences. is driven. Accenture, with its 13
    • Essential steps to achievingtrue customer-centricityNotwithstanding difficult business conditions, P&C insurersrecognize that to achieve growth they have to act decisively.Customer bases have become less dependable than ever,while new technologies are giving early adopters a bigcompetitive advantage. The net result is major shifts inmarket share for those which act decisively, along withother benefits such as increased distribution efficiency.14 | Customer-centricity—the key to differentiation and growth in the P&C insurance industry
    • We at Accenture believe the keys to personalized experience across all of Measurementhigh performance include the provision their channels. An independent survey The final step in the creation of aof a clearly differentiated, more by ClearAction7, among business-to- differentiated customer experiencemeaningful customer experience. business firms, found that half of top capability—and the first in continuallyMost carriers would acknowledge that executives believe customer experience enhancing this capability—is keepingtheir products can no longer provide management is a competitive score. Measuring and analyzingsustainable differentiation. Many differentiator and influences major customer responses not only makewould also concede that the advice decision-making. However, only 20 it possible to understand how tailoredthat accompanies their mass-market percent of these firms have implemented experiences are driving business results;products is so standardized as to customer experience management as they also enable segment managersoffer little personal value, while their a formal business process and only to identify trends and shape new offeraffluent customers are moving away 28 percent of their executives base and experience hypotheses. In thisfrom commission-bearing advice- their strategic decisions on customer way they can progressively refine theirintensive products, preferring to retain experience or customer lifetime value. offers and experiences, and take theindependent advisors on a flat fee. organization closer to industrializing Operating model its ability to deliver meaningfullyWhich is why the focus must shift toa tailored, branded, scalable multi- & technology tailored experiences.channel experience—but this will not One of the first challenges in changing These measures, taken together, willbe easy. Most organizations are structured the operating model is the need to significantly raise the effectiveness ofwith an alignment of budgets, profit separate product manufacturing and the carrier’s sales operation, improveand loss, and influence within product distribution, as the former is measured its distribution efficiency, and createsilos. This product-centricity is reinforced in terms of optimized unit costs while a sound platform for innovation thatby their operating models, processes, distribution seeks to maximize the meets its customers’ needs. It will shiftgovernance and infrastructure. value of the relationship for both the the insurer, in the eyes of its customers, customer and the company. Technology from being a self-interested vendor ofSegmentation also needs to be reviewed because a grudge product to a trusted advisor many insurers, overly reliant on face-To acquire customer-centricity that offers to protect their property, to-face distribution, have allowedmany firms begin with analytics and their well-being and their future. their front-office and end-user deliverysegmentation, which allow them to capabilities to lag those of innovatorsconcentrate on go-to-market strategies To find out more about Accenture’s in their own and other service industries.based on insight-driven, actionable Consumer-Driven Innovation Surveys,customer segments and business and other information on the role ofpriorities. Accenture’s Consumer-Driven Talent technology in insurance distribution,Innovation Survey confirms that the Sales agents will continue to play a visit our website at www.accenture.com/majority of insurers are currently central role in the new customer- insurance.investing in analytics, and in the ability centric insurance model, but theto improve segmentation and provide management of this talent mustcustomers with a tailored experience— change. Sales and service personneland they intend to continue doing so. should be aligned to specific customer segments, using demographic andCreating the experience personality traits (among others) to ensure an effective match. “Ownership”The next step along the journey to of the customer must transfer fromcustomer-centricity is the creation the respective product groups to theof offers and experiences that evoke segment owner. And technologicalpositive responses from the respective advances must be harnessed to changecustomer segments. This can be more the nature of collaboration, so thatchallenging than it sounds, as most expertise can be organized and utilizedorganizations lack the operating models, in new ways.the technology, the infrastructureand the people to maintain a consistent, 15
    • References About Accenture About Accenture Research1. Accenture Global Consumer Accenture is a global management Accenture Research is Accenture’sSurveys, 2009 and 2010 consulting, technology services and global organization devoted to outsourcing company, with approximately Economic and Strategic Studies.2. Accenture Consumer-Driven 236,000 people serving clients in The staff consists of 150 expertsInnovation Customer Survey, 2011 more than 120 countries. Combining in economics, sociology and survey3. Accenture Consumer-Driven unparalleled experience, comprehensive research from Accenture’s principalInnovation Executives Survey, 2011 capabilities across all industries and offices in North America, Europe and4. The Path to High Performance in business functions, and extensive Asia/Pacific.Insurance: Transforming Distribution research on the world’s most successfuland Marketing with Predictive Analytics, companies, Accenture collaboratesAccenture, 2011 with clients to help them become high-performance businesses and5. Accenture Multi-Channel Insurance governments. The company generatedDistribution Executives Survey, 2010 net revenues of US$25.5 billion for the6. Achieving Strong Returns In Mobile fiscal year ended Aug. 31, 2011. ItsBanking: Here’s How Leading Banks home page is www.accenture.com.Do It, Accenture, October 20107. 1st Annual ClearAction Business-to-Business Customer ExperienceManagement Benchmarking Study,ClearAction, 2010Copyright © 2011 Accenture For more information about usingAll rights reserved. technology to improve distribution in insurance, scan this QR code using aAccenture, its logo, and QR application on your mobile device.High Performance Deliveredare trademarks of Accenture.