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Only 30% of insurance customers have a positive experience

70% of customers at risk of competitive attack: World Insurance Report 2013

Globally, only 30% of insurance customers have a positive experience, according to the World Insurance Report 2013 from Capgemini and Efma.

The report states that nearly two out of three customers are “at risk of retention with only a neutral an/or negative customer experience.”

Read: Customer service fundamentals

“When customers have neutral or negative experiences with an insurer, opportunities are created for insurers to ‘court’ other carrier’s customers, and customers may switch even for minimal extra benefits,” said Jean Lassignardie, chief sales and marketing officer, Capgemini Global Financial Services, in a press release. “Even in the US, the country with the highest customer experience ratings, insurers still face a risk of retention rate of 50%, meaning no one is immune.”

In response, the report also found that insurers are increasingly looking to social media and mobile channels to support the overall customer experience. In fact, 50% of insurers will look to prioritize mobile and social media over the next two years to strengthen customer satisfaction.

Read: (Re)Building Your Web Presence

According to the World Insurance Report, the top five reasons why insurers should invest in mobile channel are:

  1. Anytime/anywhere/any device demand,
  2. Keeping up with the competition,
  3. Customer service costs,
  4. Increased smartphone adoption,
  5. Cross-selling/up-selling opportunities.

It also identifies the leading mobile services offered today and those with high return on investment (ROI) potential over the next two years. These include: product information via mobile (43% today/91% by 2015), claims services (16% today/73% by 2015), quotes (23% today/70% by 2015), Straight through Processing (9% today/55% by 2015), and policy changes (9% today/52% by 2015).

According to the report, 59% of global insurers are already using social media, but few have integrated it into their enterprise-wide customer relationship management strategies.

The report is based on 16,500 customer surveys, research data from 41 markets, and interviews with 114 insurance executives.