Once upon a time, insurers sat in the power seat when it came to their interactions with policyholders. The insurers understood the magic behind how insurance was sold, how premiums were calculated, and how claims were adjudicated. Those days are gone. In the Age Of The Customer, consumers are changing the rules and who wield the power. Thanks to all things digital, consumers have shifted from being passive sideliners and are willing — and able — to play more active and demanding roles across the insurance business. That means that digital must now be a core underpinning of an insurer’s customer experience philosophy, not an endpoint.
Just what are the factors propelling North American insurer agendas this year? For starters, it’s about:
Booming growth in revenues and profits. 2013 was a very good year for most North American insurers --the best since the financial crisis. Many are sitting on hefty policyholder surpluses and capital.
The fallout from HealthCare.gov. Balancing political winds with project management reality heaped more pressure on already stressed health plans, thanks to shifting deadlines, relaxed employer mandates, and zombie health plans. And as a result, trust across the broad healthcare ecosystem was undermined.
The risk of emerging insurers to meet the needs of digitally empowered consumers. Consumers are getting being trained to expect even more from their digital interactions. New insurers are coming to market offering new digital experiences that simplify, personalize, empower, and reassure customers.
Extreme weather. US and Canadian insurers have shifted to a posture of adaptation, and are looking to arm policyholders with new tools to better protect them from natural hazard risks.
Insurance carriers are pulling out the stops when it comes to their mobile strategies. It’s now rarer to find an insurer that doesn’t offer at least one app plus a mobile site. But just how effective are all these mobile insurance apps and sites at meeting the needs of auto insurance customers? At the end of the summer, we decided to check out the mobile sales and service functionality that leading US auto insurers – Allstate, Farmers, Geico, Liberty Mutual, Progressive, and State Farm – were offering to their customers. We reported what we learned in our just-published 2013 US Mobile Auto Insurance Functionality Rankings report.
Our approach followed these steps:
Define a user scenario. We defined a target persona: Ryan and his wife Nicole live in Chicago and are in the market for a new car and will need to change the vehicle on their policy. Their mobile goals are to research and apply for insurance, pay their bill, see how easy it is to file and manage claims, get help on the road, and see what other help they can get through their insurer on a mobile phone.
Score mobile functionality based on user criteria. Forrester’s mobile functionality benchmark methodology examines 26 individual criteria that measure how well an auto insurance app helps customers achieve their goals. Each criterion has a potential score ranging from -2 to +2.