The Need for Speed

Analyst urges insurers to think like consumers in adapting to new market.

The wireless world has created a “game-changer” moment for the insurance industry, creating higher customer expectations, say analysts at Ovum.

Insurers and providers don’t have much time to process or react to market changes and meet evolving demands–but one way to do so is to think like a consumer, says Barry Rabkin, an analyst at Ovum. By recognizing what consumers want, the industry can meet new benchmarks for speed, responsiveness and availability more easily, he writes in a new report, The Impact of M-Commerce on the Insurance Industry.

M-commerce, which encompasses mobile customer service–everything from information queries to financial transactions–requires insurers and service providers to fulfill requests immediately; have strong connectivity; sound privacy and security measures; and proper resources to meet consumer demands, the report states.

“Providing a quality customer experience, not to mention a world-class customer experience, is entirely dependent on conducting business from a customer  perspective,” Rabkin states in the study. “This presents a significant hurdle for insurers which operate on a product  perspective to the point of expecting the profitability of each product to be independent of other products, or worse, to be independent of the profitability of the entire customer relationship.”

For those who doubt the viability of m-commerce, “we believe that if they decide to ignore m-commerce, they will marginalise themselves as quickly as younger generations arrive at their first purchasing decision,” Rabkin says.

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