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INFOGRAPHIC: Fixing the Insurance Industry - how big data can transform customer satisfaction

Insurers are facing a moment of truth. Customer satisfaction levels have hit worryingly low levels. According to a survey conducted by Capgemini in 2014, less than a third of customers globally are satisfied with the services of their insurance providers. Traditional insurers also face competition from new entrants who are determined to meet customer expectations. Non-traditional competitors, such as ecommerce majors and technology startups, are leveraging their data-rich customer interactions to create and sell insurance products.

Surprisingly, insurers seem to have overlooked the impact of Big Data on improving customer experience as they often focus their Big Data efforts on detecting fraudulent claims and improving underwriting profitability. In fact, only 12% of insurers consider the enhancement of customer experience as a top Big Data priority. This is startling given the poor levels of customer satisfaction in the insurance industry.

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INFOGRAPHIC: Fixing the Insurance Industry - how big data can transform customer satisfaction

  1. 1. Augment data leadership with governance and KPIs Develop transparent data privacy policies to address customer concerns around the use of personal data Reach out: Interested in reading the full report? Head to Follow us on Twitter @capgeminiconsul email Learn more at: 29% Only 12% However, insurers need to overcome hindrances to the adoption of customer analytics of customers globally are satisfied with the services of their insurance providers Digital Disruptors are Drawing Customers Away from Traditional Insurers Rakuten, Japan’s leading ecommerce company that began selling life insurance in 2011, sold nearly 1 million policies in 2014 Oscar Health, a health insurance startup founded in 2013, is now valued at $1.5 billion insurers cite enhancement of customer experience as a top priority for using Big Data Yet, only In 2014,Customer satisfaction levels declined globally, across all stages of the insurance lifecycle Customer analytics can help insurers enhance customer experience in a variety of ways… MetLife developed an application that provides agents with a single view of all customer transactions on a single screen Progressive analyzes telematics data to reward safe drivers with lower premiums BlueCross BlueShield of North Carolina uses advanced analytics to uncover healthcare trends that help its corporate clients devise cost-effective worker health insurance plans Hiscox used analytics to personalize online experience, help customers find the right products and generate quotes A product-centric view hinders insurers’ view of customer needs across product lines and lifetime value of insurers have introduced data management systems to predict future patterns in customer behavior14% Only 20% Only 10% Onlyof insurers use social media interaction data and use sensor data 51% of insurance executives believe that the IT development process at their organization is a constraint to develop insights more quickly How can insurers strike gold through the use of customer analytics? Invest in building data management infrastructure Establish a data leader to take charge of the organization’s overall data strategy Adopt non-traditional approaches to acquire Big Data and analytics skill-sets Adopt an agile test-and-learn approach to rapidly test and rollout new analytics initiatives Insurers have overlooked the impact of customer analytics on improving customer experience… Fixing the Insurance Industry: How Big Data can Transform Customer Satisfaction