Insurance brokers that stubbornly hold onto traditional business models could face being left behind. Profitable growth in the brokerage business is stagnating after 10 consecutive quarters of underlying P&C commercial insurance price declines. Emerging disruptive technologies are changing the way customers interact with insurance, including cutting out the middlemen. Some insurers are already reaping the benefits of this digital transformation. What does the future have in store for brokers?
According to a new Accenture survey, a growing number of insurance chief marketing officers (CMOs) feel they are falling short of meeting their carriers’ growth objectives. Only 53 percent of insurance marketing executives—less than in any other surveyed industry—felt assured they could meet the performance objectives of their organizations.
Small commercial insurance is a highly desirable market, and one that is going through a digital transformation. In order to win big in small commercial, carriers need to create winning digital experiences, significantly improve the efficiency of core operations and create category killers by launching new direct channels.
Over the course of this blog series, I’ve examined how experiential research and design thinking can enable insurance carriers to build better customer experiences. I also discussed how our own experiential research, conducted with Fjord, shows that direct carriers are not currently giving small commercial customers what they need and want.
In the first two posts in this blog series, I discussed some experiential research from Accenture and Fjord that offers unique insights into the small commercial insurance market. This time, I’ll delve into the methodology we followed to find out from small business owners why they don’t buy commercial cover online.
In my previous post in this series, I looked at the reasons that small business owners are generally unhappy with the customer experience in small commercial insurance. This time, I will focus on what these owners want from direct carriers and how insurers can improve their relevance to this market.
For years, almost every industry study has indicated that small commercial insurance is ripe for rapid expansion of online sales, but growth to date has been slow. Accenture and Fjord set out to find out why and went directly to the source for the answer.
In my first post of this series, I explained the tremendous potential of intelligent solutions to drive significant financial benefits across the entire insurance value chain. The key to unleashing the full potential of these solutions is to move beyond the investigating phase into industrializing at scale.