Consumer behavior is shifting in favor of BigTech insurance providers as customers feel empowered to forego agents and brokers and work directly with new entrants
Capgemini and Efma’s World Insurance Report 2020, published , reveals that consumers of all ages are adopting a ‘millennial mindset’, and increasingly trusting their own research through various channels to source information and purchase insurance products themselves. Consumers are turning to non-traditional players such as BigTechs1 and product manufacturers for innovative, personalized offerings with enhanced customer experience (CX) and are increasingly relying on digital channels in the face of the COVID-19 pandemic.
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“Strategically-savvy frontrunner insurers are ramping up collaboration with mature InsurTech firms to develop innovative solutions as, now more than ever, customer experience will be the differentiator for those that thrive in the future”
To remain relevant, cites the report, incumbent insurers must take action, by re-evaluating their portfolios and harnessing partnerships to become ‘Inventive Insurers’. This involves shaping existing products to meet fast-evolving customer needs and preferences.
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The millennial mindset has transcended age
Digital adoption is no longer a function of age; for those with access to the web and social media, researching and directly procuring insurance online has become mainstream across all generations. Capgemini’s report shows that the number of Gen X and older customers2 making daily online and mobile transactions such as shopping or bill payments has doubled, rising from 30% of Gen X and older respondents in 2018 to 64% in 2020. The COVID-19 lockdown will further fuel this trend as consumers are forced to use digital channels for day-to-day transactions, irrespective of age or tech know-how.
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