A new thought leadership research titled Bridging the Customer Expectation Gap: Property Insurance is now available, according to Majesco, a leader in cloud insurance software solutions for the modernization of the insurance industry.
The new analysis examines in depth the discrepancies between what customers expect, want, and need as it relates to property insurance and what insurers are doing as a result of Majesco’s research on consumers and small businesses and strategic priorities. Pricing and underwriting, value-added services, and distribution channels are three major gaps that have been found. By utilizing a customer-centric strategy that incorporates consumer expectations into their operations and strategic priorities, insurers can take advantage of these gaps to achieve long-term customer growth, value, and loyalty.
“Gen X and Boomers, the so-called ‘traditional’ clients, account for the majority of insurers’ current business and revenue as they approach retirement and begin to accumulate assets.” According to Denise Garth, Chief Strategy Officer at Majesco, “These customers have changing expectations on personalized underwriting, value-added services for risk mitigation, and channels they want to buy or engage with, which require insurers to rethink and adapt how they do business to enhance loyalty and retain them as customers. The tendency of Millennials and Gen Z customers to switch to new brands that can live up to their expectations is accelerated by the fact that they are increasingly the dominant buyers, have even higher expectations, and are dissatisfied with the traditional insurance processes. Smart, creative insurers are redefining insurance with an outside-in approach to improve their ability to capture and retain any generational group as they look for more value from insurers and emphasize that loyalty is a two-way street. These insurers are prioritizing and implementing capabilities that meet these rapidly shifting customer expectations.”
The property insurance industry is facing more and more difficulties. Natural catastrophes in 2022 had a significant effect on the sector. The impact of historic high inflation, rising claim costs, and the cost of insurance is having a greater influence on personal and commercial property insurance than it has in many years, as have the increasing frequency of catastrophic weather events and natural catastrophes. Forward-thinking To position themselves for market leadership and growth, CEOs are taking risky, lightning-fast actions to close the gaps in customer expectations, including:
- Expanded and customized solutions that let consumers get protection that satisfies their individual needs and financial expectations through the use of both new and existing data for underwriting. Insurers benefit from lower costs, more profitable underwriting, and data-driven risk assessments that can lead to risk avoidance or reduction.
- Improved risk resilience through innovative products and value-added services that offer data and access to services to comprehend and proactively address risk. By changing the approach from claims payout to risk management, this benefits insurers’ profitability and customer satisfaction.
- Increasing the market and customer reach of individuals and companies through innovative possibilities for distribution channels, such as embedded insurance, that provide coverage when and where it is needed. As a result, insurers are in a better position to compete in the market thanks to a developing ecosystem of channels that plays to their advantages and plugs any gaps or shortcomings.
Source: FinTec Buzz
