• Cognizant 20-20 InsightsOnline Capabilities of UAE Insurance Carriers:The Road to Customer SatisfactionGiven increased c...
The Big Picture: UAE Insurance                               growth drivers and hence demands a specific                  ...
information. The process was simplified for           this capability, possibly by giving the customerscustomers at four o...
Insurers’ portals will continue to coexist with their                               cy regarding company particulars would...
Methodology                                             ScoreA sample of 10 insurers operating in the UAE            A sco...
About CognizantCognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process ...
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Online Capabilities of UAE Insurance Carriers: The Road to Customer Satisfaction


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With the insurance industry poised to boom in UAE, we assess the state of UAE carriers' online distrbution portals ands find much room for improved service in prospecting tools, policy holder self service, customer portfolio information, claims, and customer support.

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Online Capabilities of UAE Insurance Carriers: The Road to Customer Satisfaction

  1. 1. • Cognizant 20-20 InsightsOnline Capabilities of UAE Insurance Carriers:The Road to Customer SatisfactionGiven increased competitive pressures and significant operationalchallenges, highly functional and intuitive enterprise portals haveemerged as a clear differentiator for insurers bent on seizing thehigh ground in this fast-growing but quickly maturing market. Executive Summary However, their online distribution strategies are currently suffering from IT challenges such as: Over the past few years, the UAE insurance market has undergone significant changes marked by consolidation, demutualization and a strong • Absence of a coherent channel strategy. trend toward specialization. It is expected to grow • Absence of key features of utmost importance significantly, given the relatively low insurance to the end user. penetration levels, growing population, rising • Absence of business-IT harmony. GDP and infrastructure development. The sector is expected to grow at a CAGR of 19%, reaching • Silo implementations. US$18.3 billion1 by 2015. Insurance premiums are • Portal proliferation arising from mergers and also likely to grow at a CAGR of 20% over the acquisitions. next four years to reach US$37 billion, with the The importance of online distribution and the general insurance segment contributing 86% of issues faced currently have pressured insurers the total premium. to create an enterprise portal strategy. We have This fast-changing environment demands best studied the online portals of a select list of UAE and innovative practices in all aspects of insur- insurers to understand their effectiveness and ance company operations such as product future readiness. development, information systems, distribution This white paper explores our findings and delves strategies and client services. With a booming into growing online capabilities of 10 insurers population, increased competition and a larger operating in the UAE region. It provides insights market to tap, distribution strategy planning has on the overall regional IT landscape within the taken precedence over other focus areas. Given insurance industry, analyzes and identifies the key the large young population and an Internet usage differentiating capabilities, and presents a picture that points directionally upwards, distribution of the online maturity level of these players. strategists have started to emphasize online dis- tribution to capitalise on growing opportunities. cognizant 20-20 insights | april 2012
  2. 2. The Big Picture: UAE Insurance growth drivers and hence demands a specific Carriers’ Online Capabilities focus. With the increase in growth opportunities in-country, global insurers should concentrate Budget constraints and a conservative approach more on enhancing their customer portals in to information technology have meant that the the UAE to provide specific information on their UAE insurance industry has until now adopted a regional products (e.g., their focus on Islamic passive approach to IT investment. Similar results insurance products). were also found in our assessment, where we analyzed the online capabilities of a sample of 10 Our research shows that some of the regional UAE insurers and scored them based on certain insurers in UAE have used their portals merely parameters. (The assessment methodology is to present information and have not used them detailed in the final section.) as strategic tools to increase sales. With an The companies The companies that scored high increasing awareness of insurance needs among relative to their peers in their the population, personal insurance is expected that scored high online capabilities were still found to be on the rise in the UAE and the insurance relative to their to lag behind what we posit as an carriers should look to their online medium to tap peers in their online ideal state, based on our research this market. and engagement experience.capabilities were still And, amid ongoing structural Research Revelations: The Road to found to lag behind and regulatory reforms, the need Customer Satisfaction what we posit as an to tap the growing market as well We have analyzed the online capabilities of the as the pressure to remain com- UAE insurers under the following sublevels. ideal state, based petitive are all the more reason on our research compelling insurers to improve Prospecting Tools their existing customer portals. and engagement With the advent of Internet-savvy customers, UAE insurers need to move to the next online experience. While a majority of the global level, from only providing basic product informa- insurers that were reviewed tion to delivering quote generation and quote had strong regional customer portals, a few had retrieval capabilities. Of the insurers analyzed, portals that were effective only for their U.S. or 80% provided either quote generation or quote global businesses, and their UAE country-specific retrieval; only a few offered both. portals were functionally lean. Being significant- ly different from the U.S. or UK in its economic Insurers have improved customer satisfaction by development and insurance market penetration, providing well-organized enquiry facilities either the region (as previously discussed) has different through online forms or by providing contact Assessing UAE Insurer Online Capabilities Ideal Regional Insur er 5 Regional Insur er 4 Regional Insur er 3 Regional Insur er 2 Regional Insur er 1 Global Insur er 5 Company Infor mation Global Insur er 4 Pr ospecting Tools Global Insur er 3 Policy Holder Self Ser vice Customer Por tfolio Infor mation Global Insur er 2 Claims Global Insur er 1 Customer Suppor t 0 1 2 3 4 5 6 7 8 9 10 Source: Cognizant Business Consulting Figure 1 cognizant 20-20 insights 2
  3. 3. information. The process was simplified for this capability, possibly by giving the customerscustomers at four of the 10 insurers reviewed by a firsthand look at what their premiums wouldproviding a call-back option either through SMS be by simulating scenarios of losses or indemni-or e-mail. ties over a period of time. Regular updates on the company product offerings could also be givenPolicyholders’ Self Service through mobile apps.Our research indicates that regional carriersprovide only a moderate amount of self-service Claimscapabilities to customers. Unlike local carriers, Online capabilities on the claims front, suchglobal insurers have been able to capitalise as online claims notifications and claim statuson their portal experience in providing richer tracking, were not provided by most of thefeatures in their regional portals. insurers analyzed. Global insurers fared better than the regional ones in our assessment in termsThe majority of the insurers we surveyed have of their claims-related onlineimplemented online options for policy trans- capabilities given their ability Unlike local carriers,actions, such as the conversion of quotes into to leverage their expertise frompolicies and policy endorsements, but not many other regions. global insurersof them have implemented renewal and cancel- have been able tolation transactions. About 10% of the insurers Claim notification could be made capitalise on theiranalyzed differentiated themselves from the rest online through e-mail, a call-backby providing additional and unique facilities like feature, forms or by providing portal experienceprovision for making nonfinancial endorsements. regional contact numbers in in providing richer the portal. Roughly 20% of theRoughly 50% of the insurers we reviewed features in their insurers we studied providedenabled their customers to make online trans- all modes, while another 20% regional portals.actions through secure gateways and electronic supported only one channel.fund transfer. However, these insurers have A few of the insurers differentiated themselvesnot provided the option to generate receipts. from the pack by providing specific facilities.Customers are moving towards a paperless For example, one insurer had a live chat facility,working mode and value the option to generate and a few of them (10%) had information aboutonline bills and receipts. third-party services like facilities, garages and hospitals. In the future, these online capabilitiesWe were surprised to observe that 50% of will help the carriers to stand out from the rest.insurers studied did not provide independentlogins for their customers to view, track and print Claim tracking was provided by only 30% of thetheir policy information. insurers that we studied, and then only at the final stage. Only three insurers posted contactCustomer Support information of the claims service providers on theThough most of the insurers assessed posted portals. Ideally, insurers would enable customerstheir customer care phone numbers on their to assess the status of any claim at each level,portal, only a few went further by providing interact with the staff currently managing thespecific complaint handling options such as an claim and check the schedule of forthcomingonline complaint form and exclusive complaint activities.handling contact numbers. Millennial customerslook for more online options than the mere Customer Portfolio Informationprovision of real-world contact numbers. For Most insurers scored below par in this categoryexample, research suggests this demographic in our study. The majority merely provide staticis better satisfied if they can get quotes, locate product information. Separate logins for eachagents and buy policies online. customer, providing them with the option to view and track their portfolios, were provided by 40%To keep customers informed about the company of the insurers, particularly those that notchedand the market, most insurers reviewed had higher scores than the rest in this capability.either published an insurance glossary or an FAQ Providing self-service options along with separatesection. This enables customers to make more logins will enhance customer experience; this isinformed decisions with regard to the company’s an area that insurers should target.offerings. However, to help motivate customersto transact, these insurers need to improve on cognizant 20-20 insights 3
  4. 4. Insurers’ portals will continue to coexist with their cy regarding company particulars would enhanceagent distribution channels. This channel can also value perception in the minds of customers. Somebe enhanced using the online medium, wherein insurers have elevated mind-share and cred-agent management and training can be handled ibility by detailing additional information such asthrough portals. Independent login for agents countries served, country-specific offerings andwould give them better access to data, better self- their anti-fraud and anti-laundering policies.service options and the opportunity to view keyreports without being constrained by business From New Business to Claims:hours and dependency on people for data. Not Where Are the Insurers?many UAE insurers have embraced this as a key Figure 2 illustrates the online capability frameworktenet of their strategic push to improve sales, we developed along different functional areashowever; this should be a clear future focus area across the insurance value chain. The table indicates how many insurers provide capabili-Company Information ties within each category and with what level ofCompany information is not a major differentiator maturity. This can be used by carriers to identifyaccording to our study, but increased transparen- the areas to concentrate on in the future.Capability Framework: Insurers’ Presence Online Capabilities Capability Benchmark Capability Measuring Criteria Description of Capability Low Moderate Good Company Information Countries Serviced Does the company have online capabilities for all Does the company have online capabilities for NA NA NA the countries that it serves all the countries that it serves Contact Options Other Information Website feedback Company profile (About us, history, etc.) Branch information Compliance and ethics guide News/press corner OT Website feedback Company profile (About us, history, etc.) Branch information Compliance and ethics guide News/press corner 3 3 3 3 3 SH Prospecting Tools Online product informa- Product information — information on all non- Product features/benefits tion and quote online products (i.e. except Motor, Health, Travel, Home, Critical Illness Insurance, etc.) Online quote Option for online quote generation 3 Premium/annuity calculators Premium/annuity calculators 3 Contact options for Online enquiry for both online and other products Online enquiry 3 information AP Contact us details for queries and service requests Contact us details 3 Call back request functionality Call back 3 Policy Holder Self-Service (New Business and Subsequent Transactions) Policy Transactions Online policy issuance Customer should be able to convert a quote 3 to a policy online Endorsements processing (non-financial) Customer is able to change address, premium 3 frequency, nominee addition, etc. Online renewal Customer should be able to renew his/her 3 SN policy online Financial Transactions Online premium payment or EFT Provision to pay premium online or an option 3 for EFT Premium receipts generation Provision to generate receipts for the 3 premium paid Personal Profile Man- Change/edit personal information Personal information including password 3 agementFigure 2 cognizant 20-20 insights 4
  5. 5. Methodology ScoreA sample of 10 insurers operating in the UAE A score was provided on each of the capabilitiesregion was selected and analyzed on their online based on benchmarks. An overall normalizedcapabilities. The analysis was performed via a score was also obtained for each of the insurersthree-step methodology. and cross-compared to determine the relative performance on these capabilities. Each of theResearch insurer’s scores was also pitted against an idealThe research on the online portals of the carriers insurance company capability score. This idealwas conducted by analyzing their portals. score was built hypothetically, based on ourThe research was carried out on a few broad experience with similar portals.categories, namely company information, pros- Analyzepecting tools, policy holder self-service, customerportfolio information, claims and customer From the assessment data, key differentiatorssupport. Each of these broad categories was were identified, which helped some insurers tobroken into subcategories or features on which score better than others. Also, a generic view wasthe online portals were evaluated. obtained from the data on the number of insurers that have implemented capabilities at each level of our framework.Footnote1 Based on data from The World Bank, Internet usage has increased by 67.4% in the past 5 years.About the AuthorsRamanujam Venkatesan is a Consulting Manager with Cognizant Business Consulting’s InsuranceGroup. He specializes in consulting for general insurance clients and has been engaged with multiplecarriers across North America, Europe and Asia Pacific. Ramanujam holds a post-graduate degree inmanagement from the Indian Institute of Management (IIM) Indore and has a bachelor’s degree in engi-neering from the University of Madras. He also holds certifications from the American Institute forChartered Property and Casualty Underwriters (AICPU). He can be reached at Ramanujam.Venkatesan@cognizant.com.Vinodh Stanley Stephen is a Business Analyst with Cognizant Business Consulting with a specificfocus on the insurance industry. Vinodh has extensively researched strategies for insurance carriersin developing markets. Vinodh has a master’s degree in management from the Institute for FinancialManagement and Research (IFMR) and a bachelor’s degree in engineering from Anna University. He alsoholds certifications from AICPU and CII. He can be reached at Vinodhstanley.Stephen@cognizant.com. cognizant 20-20 insights 5
  6. 6. About CognizantCognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process out-sourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered inTeaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industryand business process expertise, and a global, collaborative workforce that embodies the future of work. With over 50delivery centers worldwide and approximately 137,700 employees as of December 31, 2011, Cognizant is a member ofthe NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performingand fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant. World Headquarters European Headquarters India Operations Headquarters 500 Frank W. Burr Blvd. 1 Kingdom Street #5/535, Old Mahabalipuram Road Teaneck, NJ 07666 USA Paddington Central Okkiyam Pettai, Thoraipakkam Phone: +1 201 801 0233 London W2 6BD Chennai, 600 096 India Fax: +1 201 801 0243 Phone: +44 (0) 20 7297 7600 Phone: +91 (0) 44 4209 6000 Toll Free: +1 888 937 3277 Fax: +44 (0) 20 7121 0102 Fax: +91 (0) 44 4209 6060 Email: inquiry@cognizant.com Email: infouk@cognizant.com Email: inquiryindia@cognizant.com©­­ Copyright 2012, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by anymeans, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein issubject to change without notice. All other trademarks mentioned herein are the property of their respective owners.