1、WORLD INSURANCE REPORT 2020 2 Contents Preface 3 Executive summary 4 Almost everyone is digital 5 Whats age got to do with it? 6 Online activity, shopping preferences indicate policyholder behavior 6 The new trust equation 7 Online research and social media have empowered customers to trust themselv

2、es to make policy decisions without agent/broker input 8 Sharing the love: Trust in non-traditional insurers is growing exponentially 9 Have it your way 12 Customers want personalized engagement hyper-personalized engagement 12 Are insurers delivering what policyholders want? 13 Products: Usage-base

3、d insurance is now mainstream 13 Timing: Reaching customers at the right, most impactful times 14 Channels: Information channels used by customers 15 Super-charged real-time data is fueling insurer lift off 20 The Inventive Insurers playbook: An evolutionary success path 22 Not there yet? You are no

4、t alone. 24 Methodology 25 About us 26 Acknowledgments 27 Anirban Bose Financial Services Strategic Business Unit CEO predict customers life situations and offer coverage when they need it most The right channels that customers prefer and access most Do insurers offer experience-led engagement based

5、 on what customers want? Surprisingly, half of the insurance executives interviewed said product fit was not necessarily critical to experience-led engagement Most firms lack adequate tools and techniques to help them understand and predict when to push appropriate products Less than 30% of insurers

6、 consider online channels website and mobile apps to be effective sales drivers, while more than 60% said agent/broker channels sell policies Super-charged, real-time data can fuel insurer lift off Real-time customer data is packed with valuable details to help insurers gain actionable insight into

7、policyholder preferences that can propel engagement to the next level. Based on customer data, insurers can revisit their portfolios with a keen eye on products that accommodate customers current needs and high demand for usage-based insurance. Meaningful data mined from all policyholder touchpoints

8、 can help firms map the customer journey to enhance offerings and promotional timing. A hybrid blend of digital and emotional connection offers a balanced approach to personalized engagement. Although todays challenges may appear daunting, incumbents are not alone. Now is the time for insurers to em

9、brace the open ecosystem and to collaborate at scale with mature InsurTechs and third-party specialists to develop innovative solutions and enable quick market launches. 4 World Insurance Report 2020 Almost everyone is digital When you hear the term social media, what do you envision? Young people u

10、sing smartphones to post selfies and share comments? Or 80-somethings dominating Instagram as senior influencers? Around 70% of baby boomers in the United States used smartphones in 2019, and about 60% used social media. For Gen X and millennials, the numbers were 90% and 93% for smartphone use and

11、76% and 86% for social media, respectively.1 So, what does this mean? It means that digital adoption is no longer a function of age but has become mainstream across generations. Responses to Capgemini customer surveys (as part of recent World Insurance Reports) illustrate this phenomenon. While its

12、not surprising that more and more millennials use digital channels as part of daily life, it is noteworthy that preceding generations have now caught up (Figure 1). Gen X and previous generations have realized that digital channels are convenient and easy to operate and have broadly embraced their u

13、se. The irresistible appeal of conveniently accessing services 24/7 eroded the generational digital divide and drove mobile apps and online channels mainstream for day-to-day engagement by just about everyone. The crumbling of the digital divide and critical events in the past few decades that have

14、shaped the socio- economic scenario of today are the key reasons why all age groups have begun to adopt a millennial mindset (personality dimensions including use of digital channels, online shopping, a penchant for the sharing economy). In short, the millennial mindset has transcended age. Moreover

15、, as prolonged COVID-19 virus lockdowns force people to learn about and extensively use digital channels for day-to-day transactions irrespective of Figure 1. Customers frequently doing transactions online or via mobile app (%), 20182020 Note: We analyzed customers use of websites/mobile apps to pur

16、chase electronics, clothes, food/groceries, or travel-related or entertainment services, or to pay bills, transfer money, or make investments. Source: Capgemini Financial Services Analysis, 2020; Capgemini Voice of the Customer Survey, 2018, 2019, 2020. 2018 2019 2020 Millennials ( born after 1980)G

17、en X or older (born in 1980 or earlier) 54%30% 57%43% 62%64% 5 1 Pew Research Center, “Millennials stand out for their technology use, but older generations also embrace digital life,” Emily A. Vogels, September 9, 2019, https:/www.pewresearch.org/fact-tank/2019/09/09/us-generations-technology-use/.

18、 The needs and preferences of customers today are shaped by the tough challenges they have faced the global financial crisis, high education costs, the burst of the housing bubble, and recession. Souheil Badran COO, Northwestern Mutual Millennial needs and preferences are not unique. Today, customer

19、s across all age groups expect a digital experience from insurance firms. Greg Tacchetti Chief Information and Strategy Officer, State Automobile Insurance Co. age or tech-savviness the digital divide will narrow even further. Everyone is digital may soon become a global slogan. If age and tech-savv

20、iness are no longer consumer differentiators, will the customer preference curve be flattened? Not likely. While online reviews and ratings influence around 60% of purchase decisions, about 40% of shoppers still seek input from traditional sources such as sales staff, agents, and brokers. Around 40%

21、 of customers are willing to pay more for a firms brand name, but approximately 60% prefer value-for-money and will buy from a lesser-known brand. And thats why it is essential for insurers to determine policyholders distinguishing characteristics, beyond tech-savviness, to segment accordingly, and

22、to more fully understand the dynamics of the customer base. Whats age got to do with it? Online activity, shopping preferences indicate insured behavior We analyzed customers personality dimensions and purchasing behavior and identified two overarching parameters that shape insurance-buying actions.

23、 Social media behavior: Policyholders connect online with friends, family, and colleagues for advice and recommendations. Shopping preferences: Customers seek convenience, and to get it, they remain vigilantly on the lookout for new market offerings and options. Next, we classified customers into fo

24、ur segments with clear-cut preferences based on their proclivity to adopt a differentiating social- or shopping behavior early or to take a cautious late-mover approach (Figure 2). Figure 2. Customer segments based on their distinct social behavior and shopping preferences Source: Capgemini Financia

25、l Services Analysis, 2020; Capgemini Voice of the Customer Survey, 2020. Diff erentiating social behavior: Customers preference for connecting via social media channels and their review-seeking mindset Diff erentiating shopping preferences: Customers convenience-seeking behavior and their readiness

26、to explore new things in the market ExperimentalPioneer FollowerInquisitive Actively seek information Moderate Propensity to buy new things High Willingness to pay for services - Moderate Propensity to switch Moderate Actively seek information High Propensity to buy new things High Willingness to pa

27、y for services - High Propensity to switch High Actively seek information High Propensity to buy new things Moderate Willingness to pay for services - Moderate Propensity to switch Moderate Actively seek information Low Propensity to buy new things Low Willingness to pay for services - Low Propensit

28、y to switch Low Early adoptersLate movers Shopping preference 10% Early adoptersLate movers Social behavior 28% 38%24% 6 We believe special needs and preferences attributed to millennials also apply to a broader range of customers. Albert Spijkman CEO, Centraal Beheer World FinTech Report 2019World

29、Insurance Report 2020 Above all others, those in the Pioneer segment are enthusiastic early adopters of differentiating social and shopping behavior. Pioneers actively seek information they research online product reviews and consult friends, family, and colleagues before making a purchase decision.

30、 They are open to trying new insurance offerings. They value service quality and are willing to pay more for an excellent post-purchase support experience. However, more than 85% of Pioneers say they would drop an insurer that did not offer convenient connectivity and a personalized and consistent c

31、ross-channel experience. At the other end of the spectrum, those in the Follower segment are more cautious and wait, watch, and follow the direction of the market. Followers (38%) made up the largest segment among our survey respondents. These insureds are not very likely to access product/service i

32、nformation proactively, and less than 40% seek either online reviews or advice from their friends, family, or colleagues before making a purchase decision. Followers like a good deal, and, more than other customer segments, they prioritize price. Followers are less willing to try new products or pay

33、 extra for additional services. However, these customers make a loyal policyholder base because they are less likely to switch their insurer if they believe they are getting value for their investment. Inquisitive customers are social media savvy and have a review-seeking mindset, but they are not l

34、ikely to try new offerings. Moreover, they prefer value over convenience. Their quest for information helps members of this segment understand more about products and services, and they may end up trying new products (32%) and additional services at a premium (36%) if they perceive value. Customers

35、within the Experimental segment, on the other hand, are not particularly active on social media and are only mildly interested in guidance from family, friends, or online reviews before making a purchase decision. While these customers lack information, they are not afraid to experiment and try new

36、products. Members of this customer segment also are somewhat willing to pay for additional services (47%). Our analysis makes two points clear: The availability of information can have a profound impact on purchase decisions (across all customer segments). The number of customers influenced by onlin

37、e reviews and guidance is growing dramatically (across all customer segments). Therefore, the information channels customers use to guide their policy purchase decisions are chock full of critical indicators. Do customers still prefer traditional agent/broker channels to gather information? Or, beca

38、use nearly everyone is tech-savvy these days, do they only access digital channels? Or do they prefer a hybrid approach that includes traditional support and touch-enabled technology? Thoughtful consideration of these questions will help insurers to engage policyholders more meaningfully. The new tr

39、ust equation Before the internet was ubiquitous, anytime, anywhere, data, statistics, and commentary were inconceivable. Insurance agents and brokers were the primary information source for most policyholders. Agents owned their relationships and knew success relied on first-hand knowledge of a cust

40、omers habits, family, income, and life-event needs. Hand-signed birthday and holiday cards were elements of doing business. As a result, effective agents and brokers earned policyholders unwavering trust. Moreover, customers sought the most seasoned institutions to entrust with their financial servi

41、ces-related decisions. 7 Fast forward to 2020: Social media behavior and research-backed shopping have upended the homespun traditional trust equation. Online research and social media testimonials have empowered customers to trust themselves to make policy decisions without agent/broker input Today

42、s informed consumers examine insurance products via multiple channels and often opt to buy policies without direct input from a firm. For insurance research and comparison, all customer segments preferred methods that empowered them to review relevant information autonomously (Figure 3). When it cam

43、e to policy purchases, branch/agent/ broker channels retained their importance in the overall scheme of things. However, for most customer segments, channels such as mobile apps and aggregator websites that allow customers to buy a policy personally either exceeded or matched the importance of a bra

44、nch/agent/broker. Surprisingly, a higher percentage of customers also prefer to access the companys website for research as well as policy purchase. Inputs from agents and brokers Figure 3. Customers preferred mode for insurance research and policy purchase, by segment (%), 2020 Review from friends,

45、 family, and colleagues Online reviews and ratings Insurance fi rms website Agents and brokers Insurance fi rms website Insurance fi rms mobile app Aggregator websites that distribute insurance Customers preferred modes for researching an insurance policy Customers preferred modes for purchasing an

46、insurance policy PioneerFollower 42% 41% 49% 38% 78% 83% 86% 71% 32% 23% 38% 37% 68% 76% 79% 72% Question to customers: Indicate your preference for using the following channels for understanding/researching an insurance policy. Rate on a scale of 1 to 7, where 1 = Do not prefer, and 7 = Highly pref

47、er. Responses above 4 are shown in the fi gure. Source: Capgemini Financial Services Analysis, 2020; Capgemini Voice of the Customer Survey, 2020. 8 World Insurance Report 2020 Gone are the days when agents were the primary or exclusive source of information, and insurance was sold to customers. Tod

48、ay, customers buy specific policies in the manner they prefer. Customers across age and demographic groups rely on a variety of channels to research custom-fit insurance and to purchase policies (Figure 4). Whats more, the trend affects all geographies from mature European and North American markets

49、 to developing Asia-Pacific and Latin American regions. A high preference for omnichannel communication (including traditional and digital channels) illustrates that customers continue to value emotional connection. Sharing the love: Trust in non-traditional insurers is growing exponentially Purchasing attitudes are changing. In the past, trust was the paramount indicator, and customers accepted slight inconveniences from the firms in which they had faith. A little wait seemed to be worth i