Going “Channel-Less”: Differentiation in the insurance market through digital transformation and seamless customer engagement
The last decade or so has seen insurance customers move away from predominantly in-person relationships with their brokers and, mirroring broader consumer behavior trends, toward largely online and digital interactions. Concurrently, and somewhat consequently, the insurance industry has seen its products become more commoditized and consumer behavior more price-driven in the market.
Though convenient, online sign-ups and account management often lack the personal touch—and that factor, combined with the low cost of switching to a competitor, has served to limit the opportunity for insurers to differentiate themselves in avenues other than price. As a result, customer retention contin-ues to be a challenge, and insurers are looking to digitally transform to improve customer experience and regain their service-driven points of differentiation.