Property and casualty insurance carriers are facing rapid and pervasive changes in how they acquire, retain, and grow customer relationships. Residual effects of the financial crisis, emerging competitors, changing demographics, and technology evolution are just some of the environmental factors forcing a shift within the industry. Customer retention becomes a central focus when designing strategies for growing the business. Many factors are converging to impact the carrier’s ability to retain customers and compete effectively.
As these factors transform the industry, business expectations of insurance firms are fluctuating and forcing further changes changes around strategy, technology, and customer experience. Most notably, how do carriers bridge the gap between what their customers expect (their brand promise) and their actual experience? The ability to ask key questions to help identify where this gap exists across organizational operations and activities is vital to understanding the issues surrounding customer retention and loyalty.
Many insurers attempt to resolve their challenges solely with technology, but technology is simply a tool for achieving specific business objectives. To remain competitive during times of change, customer retention must be a priority. For example, a recent Insurance Journal study found that customer retention rates increased by as much as 15 percent when customers bundled home and auto policies. This is an example of how understanding customers and being attuned to their needs gives insurers the ability to tailor products and services accordingly.
Read the full article to see why optimized claims operations and integrated channels can be differentiating factors for retaining your customers!