From tracking drivers’ braking behavior, to installing wearable devices on factory workers, to funding medical advice mobile apps, many insurance companies are trying to become more present in their customers’ lives. They know that earning greater loyalty will require interacting more with their customers and delivering more value as well. Insurers are finally paying attention to this customer-centered approach as an alternative to the traditional internal focus on products, agents and in-year financial considerations.
Many insurance executives realize that a business built around customer advocacy can improve their economics. Customers who are loyal promoters of their insurers stay longer, buy more, recommend the company to friends and family and usually cost less to serve, a Bain & Company analysis shows—with the mix of these forces dependent on the particular market and type of insurance.
Bain’s new survey of 164,421 consumers in 19 countries, through Research Now, sheds light on the dynamics behind loyalty in P&C and life. The survey analysis, together with our client work, suggest three important themes for insurers to keep in mind as they build out a customer-centered distribution and service model.
By Henrik Naujoks, David Whelan and Harshveer Singh
See full story at www.forbes.com