ACORD, the global standards-setting body for the insurance and related financial industries, explored the importance of customer experiences in a symposium in London on March 8 which was co-sponsored by RDT.
Discussing the findings of its ‘Best Digital Customer Experience’ study of UK personal lines, ACORD focused on 1,200 carriers, brokers and aggregators and the services they provide to insurance shoppers. The study highlighted top performers and strategies for building successful digital businesses and strengthening customer relationships.
Today’s digital marketplace
ACORD President & CEO Bill Pieroni spoke about how UK insurance customers are increasingly using online resources to inform their purchases. He explained that 80 per cent of motor insurance shoppers do online research before buying, with 45 per cent making their final purchase online. He added that it was crucial to provide an effective and compelling digital customer experience.
Pieroni said that aggregators have a clear lead when it comes to digital customer experience, and he warned that insurers must catch up.
- Aggregator sites are three of the four top-ranked sites for best customer experience
- 70 per cent of consumers struggle to shop for motor insurance online
- Insurers need to provide the right digital experience if they are to compete with aggregators
- Engagement is not matched by enablement, with many digital channels leaving customers frustrated by the steps needed to get a quote
- While 90 per cent of consumers have brand awareness when it comes to aggregators, it falls to 35 per cent for insurers
- Insurers should worry less about competition from new digital entrants and instead focus on any businesses that are working on improving customer experience
- Mobile capabilities are strongly associated with overall performance and customer satisfaction
- The percentage of consumers interacting digitally with insurers in Europe, the Middle East and Africa is expected to exceed 75 per cent by 2020, underlining the need to create a digital experience that will reinforce customer loyalty
Digital experience capabilities are required for insurers
Given these findings, which show a clear need for insurers to concentrate on digital customer experience and catch up with aggregators, RDT is helping to close the gap thanks to its centralised rating hub, Equator, and related mobile app capabilities.
RDT’s CEO Mark Bates provided a presentation on TRiCE, the mobile app built using RDT technology. He spoke about how the app builds customer loyalty and delivers a market-leading experience for fast and efficient online insurance across personal lines.