, APAC
152 views
/Roman Odintsov from Pexels

Insurance loyalty rises despite market challenges – Bain & Co.

Consumers increasingly value insurers excelling in ethics, legacy protection, and anxiety reduction.

Over the past decade, loyalty among insurance customers, as measured by Net Promoter Score (NPS), has improved significantly across most countries, with increases ranging from 10 to 30 percentage points.

Despite this progress, customer switching rates have risen in property and casualty markets due to increased premiums and reduced coverage, prompting customers to seek more affordable options, Bain & Co. revealed in an insight. 

Conversely, in life insurance, a carrier's reputation is more influential than price, emphasising the importance of delivering a high-quality customer experience to retain customers.

Consumers increasingly value insurers that excel in higher-order or emotional elements such as ethics, heirlooms, and reducing anxiety. Insurers that perform well on these higher-order elements see increased NPS, yet few currently excel in these areas. 

Expanding the role of insurers from merely capital providers to comprehensive solution providers can lead to greater customer engagement and improved economic outcomes over time.

Whilst growth in insurance premiums has not outpaced general economic growth, retaining customers is critical as it links to increased product ownership and improved economics through cross-selling. 

Customer acquisition, though more expensive, remains essential and requires targeted strategies based on consumer segmentation.

ALSO READ: Generative AI to drive $50b boost in distribution – Bain & Co.

Investments in digital channels and tools have led to increased consumer adoption, especially during the COVID-19 pandemic.

Digital tools have doubled or quintupled in use for research interactions and purchasing, although complex issues still often require human assistance. 

Insurers need to simplify digital processes for straightforward transactions while ensuring easy access to human support for more complex issues. 

Generative AI and connected devices offer promising opportunities to enhance customer experience and loyalty by providing personalised interactions and proactive risk prevention.

Consumers show a growing interest in risk-prevention services, particularly among millennials, affluent customers, and urban families. 

Services such as automatic device shutoff, health checkups, and remote diagnostics are highly valued. Despite improved infrastructure and willingness to share data, few consumers currently use these services. 

Outlook

Generative AI and connected devices are poised to transform customer relationships in insurance. Generative AI can enhance self-service capabilities, personalise customer interactions, and streamline administrative tasks for employees. 

Connected devices enable more precise risk segmentation and pricing, offering services tied to healthy living and risk mitigation.

Insurers must set clear goals and measure outcomes to effectively leverage these technologies. Early adopters of these innovations are likely to create distinctive value propositions and improve their economics.

Follow the link for more news on

Analisa data, kunci kesuksesan AIA Indonesia dalam mengatasi penipuan

Prosedur operasional standar dan penyidik yang terlatih menjaga AIA Indonesia tetap terkendali.

CEO mengungkapkan bagaimana perusahaan-perusahaan Indonesia dapat fokus pada pertumbuhan di tengah regulasi baru

Sementara pasar menuju pertumbuhan, regulasi baru mempersempit keberadaan perusahaan asuransi.

Asei dan Seoul Guarantee teken MoU

Kerja sama ini bertujuan memperkuat jaminan dan asuransi kredit di Indonesia.

Fintech Indonesia melindungi 200.000 nasabah melalui kolaborasi Qoala & Sompo

JULO Protect Plus adalah perlindungan asuransi pertama yang embedded dalam solusi kartu kredit virtualnya.

bolttech, HAVA.id bermitra untuk perlindungan perangkat UKM

UKM  Indonesia juga dapat menikmati garansi perangkat tambahan selama 12 bulan.

Bagaimana Grandtag memberikan keamanan bagi orang terkaya di Asia

CEO regional Grandtag Financial mengungkap bagaimana 'asuransi jiwa jumbo' menarik UHNWI di Asia.

Asuransi Cina menganggap bijaksana untuk beralih ke investasi alternatif

Analisis melihat regulasi baru mendorong pergeseran konservatif saat asuransi mencari stabilitas di tengah pasar yang bergejolak.

Indonesia mempertimbangkan wajib asuransi TPL

Langkah ini didorong oleh meningkatnya jumlah kecelakaan di jalan raya.

Risiko reasuransi meningkat di Tokio Marine Indonesia

Sebagai perusahaan asuransi umum kecil di Indonesia, TMI memiliki pangsa pasar sebesar 2,1%.

Apakah ‘Londonisasi’ baik untuk pasar asuransi M&A Asia?

Para ahli industri membedah tingkat penggunaan yang rendah di wilayah ini untuk asuransi M&A meskipun semakin banyak pemain industri yang masuk ke arena ini.