The evolution of the Internet of Things, combined with changing behaviors and preferences from Gen Y customers, is pushing the insurance industry towards massive disruption. This year’s Report explores how these trends are driving an urgent need for insurers to transform or risk falling behind new competitors.
Featuring data from over 15,000 insurance customers globally, Capgemini’s exclusive Customer Experience Index (CEI) reveals Gen Y customers have very low positive experiences on digital channels. Addressing both life and non-life segments, the World Insurance Report 2016 covers 30 insurance markets across North America, Europe, LATAM and Asia-Pacific. Key findings for the 2016 Report:
- Insurers around the globe improved overall customer experience levels, but a generational disparity was evident, with Gen Y customers having CEI scores that are nearly 20 percentage points lower than customers in other age brackets.
- Gen Y and the Internet of Things (IoT) will act as major disruptors to the traditional insurance business, affecting everything from risk assessments to customer interactions. As connected technologies take hold, the key risk variables are facing realignment and will lead to fundamental changes in product development, underwriting, and risk management for insurers.
- The competitive threat from technology firms is growing. Globally, almost a quarter of Gen Y customers are likely to purchase insurance from a technology firm, compared to older customers. This trend is especially strong in the emerging markets of Latin America (49.0%) and developing Asia-Pacific (47.2%).
- Affluence, more than age, may be a better predictor of early adoption of the Internet of Things. Affluent Gen Xs, for example, are more likely to adopt the new technologies than non-affluent Gen Ys. Technologies related to the IoT, including smart ecosystems, wearables and driverless cars, are expected to have a large impact on daily consumer life and, in turn, insurance service providers.
View the interactive website to dive deeper into the experiences and preferences of insurance customers. The World Insurance Report website at www.worldinsurancereport.com features dynamic graphs to explore financial performance, customer experience, disruptors and the maturity of insurance organizations.
Address the insurance industry disruptions head on
Insurers must start preparing themselves today for the inevitable transformation of the insurance business by:
- Developing short-, medium- and long-term strategies for responding to the coming era of the connected consumer
- Gaining a deep proficiency in data management and analysis to meet evolving customer needs and keep pace with emerging competition
- Integrating across channels to enable customers to shift seamlessly between them and more easily manage an ever-changing set of customer interfaces and touch points.
To learn how to transform your business to stay ahead of changing customer behaviors and IoT’s expected disruption of traditional underwriting processes, contact us today at firstname.lastname@example.org or connect with one of our experts.