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Accenture Greece | Research on Greek Insurance Market

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Accenture Greece | Research on Greek Insurance Market

  1. 1. Greek Insurance Market
  2. 2. Contents Summary Voice of the Consumer Annex Voice of the Intermediary Voice of the Insurer
  3. 3. Greek Insurance Market Survey The first 360o survey conducted for Greek Digital Insurance The unprecedented circumstances that Covid brought to our lives in 2020 have driven a rapid uptake of digital in every business. Today, we put Greek Insurance in the spotlight and scrutinize it under a digital lens. Conducted with the support of Hellenic Association of Insurance Companies (EAEE), the Greek Market Digital Insurance Survey provides a 3-dimensional view of the industry. Conducted over a period of five months (September 2020 – February 2021) it incorporates the viewpoints of: ✓ 2000 Consumers ✓ 157 Insurance Intermediaries ✓ 38 Insurance C-Level Executives It is the first 360o Digital Survey conducted for Greek Insurance, aiming to record the key market trends - amidst Covid volatility- and assist the public dialogue for the sector’s potential and challenges.
  4. 4. A Digital Cycle Begins for Greek Insurance Consumers expect more digital offerings, Intermediaries are preparing themselves for the upcoming changes and Insurers are drafting digital transformational plans Back in 20171 we saw the Greek Financial Sector entering a cycle of extended digital transformation with banks taking the lead. Insurance, as sector with a typically human centered DNA, has followed a fragmented approach to digital. This is one reason why Insurance is open to disruption and has globally entered a volatility state2. This survey reveals that today consumers expect more digital capabilities and offerings by Insurers than in the recent past3, while at the same time human interaction with well-versed advice remains vital. On the other hand, Intermediaries perceive this digital shift; They need support to operate in the new digital era and they are willing to support –in turn- such digital initiatives. Insurers perceive threat from digital, however they are confident about the future and are planning their digital investments. Accenture Viewpoint: It is now a time of change, with Greek Insurance entering a new era. Insurers should accelerate in digital with solid Digital Strategies.
  5. 5. Greek Market Digital Insurance Survey: Key Findings To understand where the sector is heading amidst covid uncertainty, we asked the key stakeholders of the Greek insurance ecosystem. Voice of the Insurer • Expect disruption; worried, but also excited • Grasp the pulse of the market • Digital has value across the value chain • Ambitious digital plans Voice of the Intermediary • Business has been impacted by Covid • Acknowledge customers needs are changing • Technology is both a threat and an opportunity • Need help but also willing to change • Insurers should adopt a faster pace Voice of the Consumer • More open to digital offerings • High expectations from Insurers • Value personalization and knowledgeable advisors • Interested in alternative sales channels and innovative offerings 1 2 3
  6. 6. Voice of the Consumer 6 6 Copyright © 2021 Accenture. All rights reserved.
  7. 7. Voice of the Consumer Consumers demand more, and compare the insurance services with other digital experiences Consumers expect more; they are open to more digital as they are open to innovation. This has been voiced loudly and clearly – there are high expectations and demand for digital capabilities, not for the trend but for the value. Consumers want personalized services and knowledgeable advice. They want freedom to choose the channel of their preference for their insurance needs and are willing to buy insurance services and offerings from alternative providers. Accenture Viewpoint: Insurers and Intermediaries need to adapt to the new digital reality otherwise their businesses could be threatened.
  8. 8. Insurance transactional behavior during Covid has been affected but to a lesser extent than other sectors Voice of the Consumer Moderately Low/ not at all Very much/ a lot Question: How much do you think the Covid pandemic has changed your transactional behavior regarding: 76% 77% 50% 60% 14% 12% 23% 22% 10% 11% 27% 18% Public Services Banks Insurers Retail
  9. 9. Transacting digitally is important for insurance consumers and 53% of the respondents perceive Insurers’ response to Covid very satisfactory Voice of the Consumer Very much/ a lot Some Very few/ not at all Question: During the Covid pandemic there has been a significant increase in products, transactions and services offered digitally. Indicate the level of importance for you to be able to transact digitally with: Question: Which of the following do you think have done the most in terms of making digital services, transactions and products available? 78% 80% 66% 61% 14% 11% 17% 22% 8% 9% 17% 17% Public Services Banks Insurers Retail 54% 69% 53% 64% 28% 21% 31% 26% 18% 10% 16% 10% Public Services Banks Insurers Retail Very important Moderately important Slightly or not important
  10. 10. Almost 90% of consumers highly value knowledgeable advisors and personalization, while cost continues to be an important factor Moderately important Slightly or not important Very important Question: How important are the following factors to you when dealing with insurers? 70% 74% 75% 78% 83% 87% 87% 88% 23% 17% 17% 15% 12% 10% 11% 10% 7% 9% 8% 7% 5% Τhe brand that I trust The ability to communicate and serve remotely Personal relationship with an insurance professional The ability to manage my account in the way that I want Fast and efficient service / solution of my problems The lower cost than competitors Personalized services Knowledgeable staff 2% 2% 3% Voice of the Consumer
  11. 11. Consumers are satisfied overall from the services they receive, however there is considerable room for improvement in all areas Voice of the Consumer Question: For each of your answers in the previous question, rate your current level of satisfaction: 51% 53% 53% 57% 57% 60% 64% 64% 33% 32% 34% 33% 32% 29% 26% 28% 16% 15% 13% 10% 11% 11% 10% 8% The lower cost than competitors The ability to manage my account in the way that I want Personalized services Fast and efficient service / solution of my problems Knowledgeable staff Personal relationship with an insurance professional The ability to communicate and serve remotely Τhe brand that I trust Moderately satisfied Slightly or not satisfied Very satisfied
  12. 12. 79% of consumers are willing to share their data in exchange for value such as service quality, tailored products and cost savings … Voice of the Consumer Consider sharing data for at least one benefit Unwilling to share data (Νo to all/No answer) 21% 79% Willingness to share data for at least one benefit: Yes No No answer Question: Would you be willing to share your personal data in return for the following benefits? 56% 54% 53% 50% 49% 18% 37% 38% 40% 41% 26% 9% 9% 10% 10% Faster or easier services Personalized insurance offers Discounts on non-insurance products Free of charge advice based on my individual profile Lower prices
  13. 13. … however, 21% of consumers are skeptical on issues of clarity and transparency on how their data could be used Voice of the Consumer Question: If you responded ‘NO’ to previous question, please indicate why 43% 40% 12% 1% 4% I am concerned about the use of my personal data I do not want to change anything in my policies Eventually I might be harmed by sharing my data Other I do not see how I will benefit from sharing my data
  14. 14. Finding the right mix of phygital channels while empowering human interactions is challenging Question: Select how you prefer to interact with your insurer Question: How important is it for you to have access to a digital channel (online website, smartphone/tablet app) for the following use cases? 56% 26% 18% Exclusively through human operators It depends on the transaction Exclusively through digital channels 68% 68% 79% 76% 21% 20% 11% 14% 11% 12% 10% 10% When looking for information for an insurance product When buying an insurance product When updating your personal data When needing assistance in case of an accident or illness 79% 79% 78% 79% 14% 15% 12% 10% 7% 6% 10% 11% When looking for information for an insurance product When buying an insurance product When updating your personal data When needing assistance in case of an accident or illness Deep Dive Deep Dive Moderately important Slightly or not important Very important Voice of the Consumer
  15. 15. 62% of Consumers are willing to buy insurance services from alternative providers, and this should alarm both insurers and intermediaries Voice of the Consumer Would buy insurance from at least one of the alternative providers Would not buy insurance from an alternative provider 62% 38% Willingness to buy insurance from alternative insurance provider: Very likely Moderately likely Unlikely Question: Hοw likely is it for you to buy insurance from the following providers: 45% 35% 31% 26% 26% 29% 29% 39% 40% An online-only insurer An online service provider (Amazon, Google) Other service providers (e.g. retailers, security or telecoms companies)
  16. 16. Innovative offerings are attracting consumers since they cover specific new needs that they were considered uninsured or very pricey till now Very interested Moderately interested Slightly or not interested Voice of the Consumer Question: Below there are mentioned some services which may be offered in the future to cover your insurance needs. Please indicate the extent to which you are interested in. 38% 51% 51% 63% 20% 23% 23% 21% 42% 26% 26% 16% Travel insurance where you are indemnified automatically for a flight delay Insurance which is linked to smart devices (e.g. security cameras, burglar alarms) Health insurance which premiums are connected to lifestyle (the healthier the lifestyle is, the lower the premiums are) Usage Based Insurance, Pay as you go/drive (e.g. travel or motor)
  17. 17. Voice of the Intermediary 17 17 Copyright © 2021 Accenture. All rights reserved.
  18. 18. Voice of the Intermediary Intermediaries are confident that they will continue to be a connecting value element in the era of digital insurance We are witnessing an intermediary impacted by Covid, who recognizes digital both as a threat and an opportunity; One who recognizes the change that takes place but is uncertain on how to go forward in this shaping (digital) environment. This conflict is palpable throughout; they are satisfied with insurers’ (digital) response to Covid but their sales have suffered; they are skeptical for the use of digital channels and at the same time want Insurers to invest more in digital. Accenture Viewpoint: The role of the Intermediary will evolve and its advisory element should be reinforced. Intermediaries must be supported to find their place in the digital era, with the correct messages and the right tools.
  19. 19. Intermediaries appreciate Insurers’ digital efforts Completely or partially agree Neither agree or disagree Completely or partially disagree Voice of the Intermediary 64% 75% 77% 64% 21% 12% 15% 26% 15% 13% 8% 10% Public Services Banks Insurers Retail Question: During the Covid pandemic there has been a significant increase in products, transactions and services offered digitally (e.g., sales, service, etc.). Which of the following sectors have done the most in terms of providing digital services, transactions and products: Question: I believe that Insurers have developed and provided me with sufficient digital capabilities to efficiently operate in the environment shaped by COVID: 56% 70% 75% 77% 23% 15% 17% 11% 21% 15% 8% 12% To sell policies remotely to either existing or potential customers To serve my customers remotely To be informed/ trained in new products & services To digitally transact with Insurers
  20. 20. Intermediaries have been impacted in terms of volume of business and of the way work is conducted Completely or partially agree Neither agree or disagree Completely or partially disagree Voice of the Intermediary Question: Covid pandemic significantly affected most of financial industries. I believe that the pandemic had a negative impact on the following aspects of my activity: 24% 35% 48% 68% 19% 12% 19% 16% 57% 53% 33% 16% Transactions with Insurers (e.g. policy issuance, commissions' payment) Customer service and information Renewal business (e.g. renewal premium collection) New Business/ sales
  21. 21. Intermediaries need technological support from insurers to advance the service provided to customers, but at the same time to improve their operational effectiveness Completely or partially agree Neither agree or disagree Completely or partially disagree Voice of the Intermediary Question: I believe that Technology may: 65% 57% 66% 78% 82% 69% 19% 25% 17% 17% 15% 19% 16% 18% 17% 5% 3% 12% Lead customers to choose insurance products which do not cover their actual needs Improve transparency and trust towards Insurance industry Improve customer service provided by Insurers Help me improve customer service I provide Improve the level of service Insurers provide to me Help me boost my sales
  22. 22. Customer’s data has been perceived an area of friction between intermediaries and insurers, but now it is emerging as a space of cooperation and a way to win in the digital era Completely or partially agree Neither agree or disagree Completely or partially disagree Voice of the Intermediary 69% 69% 16% 19% 15% 12% Question: I am willing to collect and share with insurers useful information about my customers in order to: Be provided with structured and regulatory-compliant tools which will help me to better serve my customers based on their profile Help Insurers to develop personalized services & products for better customer service
  23. 23. Intermediaries recognize that digital is altering their role in the insurance value chain towards a more advisory focus Completely or partially agree Neither agree or disagree Completely or partially disagree Completely or partially agree Neither agree or disagree Completely or partially disagree Voice of the Intermediary Question: My customers are willing to use digital tools to communicate with me or Insurers about the following cases: Question: My customers are willing to use digital tools to communicate with me or Insurers to cover their insurance needs in the following product lines: 36% 41% 62% 19% 26% 18% 45% 33% 20% Life & Health Other lines of businesses Motor 37% 38% 64% 66% 25% 19% 14% 17% 38% 43% 22% 17% When they seek information about an insurance product When they intend to renew their policy When they are in need of assistance in case of an accident or illness When they buy an insurance product
  24. 24. Intermediaries have been offered new digital capabilities from Insurers, with 90% of them demanding more investments Completely or partially agree Neither agree or disagree Completely or partially disagree Voice of the Intermediary Question: To which extent do you agree with the following phrases with respect to technological changes in the Insurance sector relative to the Service Levels offered by Insurers and Investments in Digital Capabilities? 63% 67% 78% 90% 24% 22% 15% 8% 13% 11% 7% 2% I am satisfied with the level of service that Insurers provide me with (transaction means, fast resolution of my issues) I am satisfied with the level of service that Insurers provide my customers with (products, claims handling, customer service) Insurers have significantly invested in digital capabilities over the past 5 years to support me to do my job better I wish Insurers to invest more in digital capabilities the next 5 years to support me to do my job better
  25. 25. Direct digital channels are still considered a threat, however intermediaries are accepting the change and they are preparing for it Completely or partially agree Neither agree or disagree Completely or partially disagree Voice of the Intermediary Question: To which extent do you agree with the following phrases with respect to technological changes in the Insurance sector relative to the provision of Digital Channels? 20% 40% 16% 15% 64% 45% I wish Insurers to provide my customers with a direct digital sales channel (not service channel) for simple products so I can allocate more time to my customers' more complex needs I wish Insurers to provide my customers with a direct digital service channel (not sales channel) so I can allocate more time to new sales
  26. 26. Voice of the Insurer 26 26 Copyright © 2021 Accenture. All rights reserved.
  27. 27. Voice of the Insurer Greek insurers anticipate the risk of a disruption and they are worried about it, but they are simultaneously excited and confident about what the future holds for the industry. Digital is high on Insurers’ agendas, recognizing value across the value chain. They understand that it is time to innovate and diversify their offerings, to elevate their relationship with customers and to help intermediaries to re-position themselves in the digital era. 27 Insurers anticipate disruption, however they are confident and excited about the future while they are planning their digital journeys. 27 Accenture Viewpoint: Insurers have ambitious digital plans. A clear roadmap on how to prioritize and accelerate is the key to a successful way forward.
  28. 28. 82% of Insurers expect that digital disruption is gaining traction, driven mainly by technological innovations and competition Completely or partially agree Neither agree or disagree Completely or partially disagree Voice of the Insurer Question: Do you believe that the insurance industry in Greece has been disrupted considerably in the past 5 years? 16% 34% 50% Question: Do you believe Greek Insurance will be disrupted considerably in next 5 years? 8% 10% 82% Question: Which you believe will be the main drivers of disruption? 95% 87% 76% 71% 42% 39% 5% 10% 19% 26% 40% 40% 3% 5% 3% 18% 21% Technology Competition Regulatory Demographic Globalisation Political
  29. 29. Insurers are anxious but at the same time they are confident and excited to drive their business in the new digital era Voice of the Insurer Completely or partially agree Neither agree or disagree Completely or partially disagree Question: I foresee threats to the profitability of my business 39% 19% 42% Question: I am anxious about the future of my business 47% 24% 29% Question: I am excited about the future of my business 26% 74% Completely agree Partially agree
  30. 30. Insurers unanimously acknowledge the fact that digital delivers value across the insurance value chain Completely or partially agree Neither agree or disagree Completely or partially disagree Voice of the Insurer Question: I (completely or partially) agree that digital will help my organization to… Question: Indicate the extent to which you agree with the following statements with regards to customer data 87% 89% 92% 97% 97% 100% 100% strengthen operational efficiency improve customer experience set up new business models create new revenue streams increase market share improve agent productivity increase customer loyalty 11% 13% 3% 21% 8% 5% 68% 79% 92% I see the business value of getting access to more insightful customer information I would consider offering something to the agents in return for more insightful information on the customers I believe my agents have insightful information on the customers
  31. 31. Digital will significantly transform the way customers, intermediaries and insurers interact and engage Completely or partially agree Neither agree or disagree Completely or partially disagree Voice of the Insurer Question: Indicate the extent to which you agree with the following statements with regards to customers Question: Indicate the extent to which you agree with the following statements with regards to intermediaries 13% 13% 74% 100% Digital may fundamentally disrupt the relationship with the customer Digital will improve the experience of the customer (sales, customer care, claims) 21% 24% 55% 100% Digital may fundamentally disrupt the relationship with the agent Digital will improve the experience of the agent (sales, claims, commissions)
  32. 32. Insurers are confident about their own capabilities and they are planning to invest now for the future Completely or partially agree Neither agree or disagree Completely or partially disagree Voice of the Insurer Question: My organization has the skills and capabilities in the following functions to efficiently deal with changes in the market Question: I am planning to upgrade my capabilities in the next 2 years in… 5% 5% 5% 5% 95% 95% 95% 95% 100% Product innovation Operations Marketing Sales Technology 5% 3% 3% 11% 10% 8% 8% 8% 84% 87% 89% 92% 92% Product innovation Operations Marketing Technology Sales
  33. 33. Insurers are confident with the service level they provide to their customers and agents and they recognize that there is no room for complacency Voice of the Insurer Question: My customers are happy with the level of service I provide (sales, customer care, claims) 3% 13% 84% Question: My agents are happy with the level of service I provide 5% 8% 87% Completely or partially agree Neither agree or disagree Completely or partially disagree Question: I have recently (in the past 2 years), or am currently, reviewing the ways I service my… 79% 87% 21% 13% Agents Customers Completely agree Partially agree
  34. 34. Insurers grasp the expectations of customers and intermediaries regarding digital Completely or partially agree Neither agree or disagree Completely or partially disagree Voice of the Insurer Question: Indicate the extent to which you agree with the following statements with regards to customers Question: Indicate the extent to which you agree with the following statements with regards to agents 55% 95% 34% 5% 11% My customers expect me to provide a digital direct channel for sales My customers expect me to provide a digital direct channel for servicing 34% 79% 21% 18% 45% 3% My agents expect that I will provide a digital direct channel for sales My agents expect that I will provide a digital direct channel for servicing
  35. 35. Insurers are alarmed by the competition, but at the same time they have high appetite for investing in digital and they know how to start Voice of the Insurer Completely or partially agree Neither agree or disagree Completely or partially disagree Question: I feel my competitors are investing more than me in digital innovation 42% 32% 26% Question: I don’t quite know where to start in terms of investing in digital/ innovation 87% 10% 3% Question: I am actively looking to take advantage of opportunities offered to me by digital 16% 84% Completely agree Partially agree
  36. 36. Insurers are currently exploring a wide technological palette High level Moderate level Low level Voice of the Insurer Question: Please indicate your organization’s current level of engagement/ utilization with the following technologies: 79% 79% 79% 74% 58% 39% 37% 32% 13% 16% 13% 16% 18% 21% 29% 29% 18% 16% 5% 8% 5% 8% 21% 32% 34% 50% 71% social media cloud automation agile analytics AI (machine learning) telematics/ Internet of Things connected devices (smart home, wearables) blockchain
  37. 37. The wide range of technologies to invest requires refinement and prioritization to ensure success High level Moderate level Low level Voice of the Insurer Question: Please indicate your level of agreement to any plans that your organization has to invest in these technologies in the future (in the next 3 years) 100% 97% 97% 90% 89% 79% 74% 61% 29% 5% 8% 13% 13% 26% 39% 5% 8% 13% 13% 32% automation analytics cloud agile social media AI (machine learning) telematics/ Internet of Things connected devices (smart home, wearables) blockchain 3% 3% 3%
  38. 38. Conclusion This survey provides insights into the key digital trends and dominant forces of the Greek Insurance market, captured during the Covid era. Nonetheless, it also serves as a reference point for similar future initiatives, becoming the first of a series of instituted industry analyses. Overall, it aims to contribute informingly to the public dialogue about the Greek Insurance industry’s challenges and opportunities for the future.
  39. 39. Demographics 39 39 Copyright © 2021 Accenture. All rights reserved.
  40. 40. Consumer Survey Demographics 1 Gender Male Female 3% 33% 64% Primary Education Secondary Education Higher education Educational level Domicile Attica Islands &Crete Thessaloniki Rest Annual household income 10-20k 20-40k <10k 40-60k >60k Survey Methodology: • Approach: Interviews with Structured Questionnaires • Sampling Method: Stratified Simple Random Sampling • Sample size: 2000 individuals • Interview Method: Computer Aided Telephone and Online Interviews • Duration: Oct 2020-Nov 2020 55% 45% 36% 12% 20% 32% 31% 41% 22% 4% 2% Age 7% 17% 31% 26% 19% 17-24 25-34 35-44 45-54 55-64
  41. 41. Intermediary Survey Demographics 2 29% 71% Female Male 4% 15% 81% Insurance broker Insurance agent's coordinator Insurance agent Up to 5 years 6 to 10 years 11 to 20 years More than 20 years Gender Age Educational level Intermediary type Years of experience Survey Methodology: • Approach: Online questionnaire distributed by Insurers • Sampling Method: N/A • Sample size: 157 Responses Received (agents and brokers) • Duration: Dec 2020-Feb 2021
  42. 42. Insurer Survey Demographics 3 Approximate annual budget invested for digital initiatives/ Innovations (€ mils) 1,0 2,5 2,0 N/A 50% 16% 24% 10% 29% 71% Insurer Type 11% 84% 5% Line of businesses 5% 8% 16% 21% 24% 26% Risk & Finance Operations & Execution Strategy & Planning CEO Commercial & Distribution Technology & Digital Executives Interviewed Multi-Line P&C only L&H only Multinational Greek Survey Methodology: • Approach: Structured Questionnaires + Opinion Interviews • Sampling Method: C- Level Executives, top-15 Insurers according to GWP • Sample size: 38 Executive Responses received • Duration: Oct 2020-Nov 2020
  43. 43. Authors Lambros Tsolkas Financial Services Lead Accenture Greece Yannis Antonakakis Insurance Strategy and Consulting Lead Accenture Greece Contributors Georgia Adamopoulou Management Consultant Insurance Strategy and Consulting Accenture Greece Giorgos Tsamis Technology Consulting Analyst Insurance Strategy and Consulting Accenture Greece Acknowledgements 1 https://www.slideshare.net/accenture/digital-greece-the-path-to-growth 2 https://www.accenture.com/gr-en/insights/consulting/business-disruption-innovation 3 https://www.accenture.com/gr-en/insights/insurance/guide-insurance-customers-safety-well-being 4 https://insuranceblog.accenture.com/10-trends-that-will-shape-insurance-in-2021 About Accenture Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services — all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 537,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at www.accenture.com. Accenture’s Insurance Practice helps Insurers to redefine their business and operating models, enhance the digital experience for customers, and position themselves for growth in a digital economy. To learn more, visit: www.accenture.com/gr-en/industries/insurance-index. Disclaimer: This content is provided for general information purposes and is not intended to be used in place of consultation with our professional advisors. This document refers to marks owned by third parties. All such third-party marks are the property of their respective owners. No sponsorship, endorsement or approval of this content by the owners of such marks is intended, expressed or implied. We would like to sincerely thank all participants and supporters whose contribution has been paramount to the execution of the survey: a) the Hellenic Association of Insurance Companies (EAEE), b) the insurance companies and their executives c) the insurance Intermediaries d) the consumers and finally e) Apopsis S.R.Ltd for the execution of the Consumers Survey. References

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