Ecosystem services are something insurance customers globally want more of and play a part in driving their loyalty to insurers, a report has found.
Bain & Company’s fourth insurance loyalty report surveyed more than 174,000 retail insurance customers in 18 countries, to understand what they expect from their insurance providers and the qualities they value most in an insurer.
The research found that insurers which offer an ecosystem of services that go beyond insurance are able to better connect with consumers on emotional and life-changing elements and received the highest ratings from customers.
Across markets, more than 80 percent of customers are open to, or actively interested in, an ecosystem of services, while in many countries, a majority of customers would even prefer insurers to provide these ecosystem services.
“In a time of disruption, the smartest insurers recognise they can’t do everything on their own.”
“In a time of disruption, the smartest insurers recognise they can’t do everything on their own,” said Dr. Henrik Naujoks, Head of Bain & Company’s Financial Services practice in Europe, the Middle East and Africa, and co-author of the report. “They’re teaming up with Insurtechs and other companies to modernize their operations, from distribution to claims processing.”
The report found that ecosystem services:
- Create more value for customers
- Foster loyalty
- Reduce price sensitivity
- Help insurers attract new customers
It added that life and health insurers can reposition themselves at the centre of an ecosystem of non-core services, such as providing advice on healthy living and senior citizen support.
The report noted that in major markets, a large share of customers indicated they were willing to switch to another provider if it offered an ecosystem service in which they were interested.
“Insurance customers don’t have complicated needs. They want to be able to choose from a good selection of policies at reasonable prices, said Darci Darnell, Global Head of Bain & Company’s Customer Strategy & Marketing practice and the report’s co-author.
“They want clear, transparent information, and they want smooth, hassle-free interactions. They expect their insurers to help alleviate their anxiety, not add to it. But the harsh reality is that most insurance companies still don’t consistently deliver the value their customers are seeking.”
Click here to view the report in full.