The Luxembourg insurance industry, often shackled by tradition, is on the precipice of change. It is now perfectly positioned to capitalize on an energized customer-base seeking greater affinity and new services. This is the key finding of the 2019 Luxembourg Insurance Market Pulse Survey (MPS), the first of its kind in the country. Jointly developed by Accenture and Bâloise Luxembourg, it surveyed more than 1000 respondents on 25 questions across six categories, ranging from ‘Satisfaction’ to ‘Omni-channel Experience’.

1. 1
RECHARGING
AFFINITY
MARKET PULSE SURVEY 2019 FOR INSURANCE IN LUXEMBOURG
How insurers can energize their customer
relationships in the future that lies ahead.

2. 2
LIFT-OFF TOGETHER OR
RISK BEING LEFT BEHIND
In search of better offerings, customers are willing to leave
their insurance providers. If given a fresh start...
Although clients prefer physical contact, the market remains
conservative and the viable digital channels are poorly
perceived...
...with insurers having difficulties in communicating across
both physical and digital channels. Therefore, clear, concise
and convenient communication is vital for the longevity of a
customer relationship.
1 out of 4 would not
know which insurer to
choose.
6 out of 10 would not
choose their current
insurer again.
are dissatisfied with
their client onboarding
experience
7 out of 10
are dissatisfied with
self-service channels
4 out of 10
37%
Telephone
33%
Face-to-face
22%
Email
8%
Other Digital
Channels

3. IF THE RELATIONSHIP IS RUNNING ON
EMPTY, INSURERS MAY LOSE CUSTOMERS
TO FULLY CHARGED COMPETITORS. WHY?
8.7/10
Quality
8.6/10
Personal advisor
8.2/10
Targeted product bundle
1. Indifferent Customers
2. High expectations
Customers have high expectations for all insurers. If these are not met, customers may leave.
3. Customer Interaction Touchpoints
Customers have infrequent interactions with insurers and consequently this makes every
meeting a “moment of truth” that can either go positively or negatively.
92%
contact
their insurer
infrequently
3
Customers remain with their
providers out of habit and
leave based on intangibles like
reputation and word of mouth.
Customers do not consider
price a key determinant for
either leaving or staying with
their insurer.

4. INSURERS HAVE ALL THE RIGHT
ENERGY SOURCES IN PLACE TO
POWER UP THEIR SERVICES AND
PROPEL THEMSELVES INTO THE NEW:
By blending their strengths with customer demand, insurers
can arrive at a prosperous, people-centric approach.
1. High-quality services
85%
UP TO are very satisfied with
the quality of customer
service.
2. Strong reputation
are very satisfied with
the reputations of their
providers.84%
UP TO
are very satisfied
with the personalized
advice.76%
UP TO
3. Customer-orientated
(perceived) ethos
4

5. 5
For future success, insurance’s renewed energy levels
need to power 2 services:
1.
PREFERRED CHANNELS
poor
2.3/5
Phygital in the New – by HUMANIZING technology,
on-demand services are personal & efficient.
SATISFACTION AT PRESENT
average to poor
Ability to access services via
self-service channels
3.4/5
Personalized and specific
advice offered
3.8/5
Clarity and accessibility of
information
3.9/5
Website content, layout and
services
3.5/5
SATISFACTION & PREFERENCE...
Smartphone
app
While customers are resistant to communicating
with the insurer on premises (3.4/5 preference),
insurers must nonetheless enhance digital channels
because:
Ease and convenience are paramount for key
demographic groups (i.e. self-service).
Streamlined and clear communication may
improve the ‘ease of onboarding’ metrics).
THE CHALLENGE IS TO COMBINE PERSONALIZED OFFERINGS AND SUPPORT DEMANDED
BY CUSTOMERS, WITH EFFICIENT AND DIGITAL MEDIUMS THEY SELDOM USE.
Insurance
website
2.7/5

6. 6
2. Explore the space beyond insurance: like any
relationship, insurers must GO BEYOND and offer more
than what is expected.
70%
are willing to pay
for innovative
niche products
We see an untapped market
for niche products combined
with an overall willingness to
pay for such products:
54.7%
Housing
Services
22.8%
Pet
Coverage
20.2%
Cyber-
security
E-transportation
Coverage
7.21%
66%
are willing to receive
computer-generated
advice for certain
insurance services.
48%
are willing to deploy
smart home IoT
solutions.

7. 7
By capitalizing on their strengths and by treating these as a
launchpad to success, insurers can lift-off into the ‘new’.
To fuel their journeys, insurers must humanize technology
by innovating through phygital mediums whilst landing on a
range of offerings that go beyond that is expected.
WHAT’S NEXT?
For deeper insights based on our survey or if you are interested in comparing your insurer’s
situation with anonymized competitors via concrete cases and benchmarks, feel free to
contact one of our experts!
© 2019 Accenture. All rights reserved. Source: Accenture Market Pulse Survey 2019
EMILIANO
LUZZI
e.luzzi@
accenture.com
SOPHIE
KIRCHHEINER
sophie.kirchheiner@
accenture.com
ROHAN
AGARWAL
rohan.a.agarwal@
accenture.com
XAVIER
ROBLIN
xavier.roblin@
baloise.lu