How digital are Swiss insurance customers? A representative study by mm1 shed light onto the online affinity of the Swiss population and the state of digitalization of the customer journey from the perspective of insurance customers.
Most of today’s customer journeys is "offline"
The results show that the entire customer journey–including the steps of information procurement, purchasing, management and payment, claims and cancellation–currently has an average online activity rate of only 28%.
From a policyholder’s perspective, the customer journey steps of transaction, administration & payment, claim notification and processing are mostly transacted offline. Some of the information procurement can already be considered digitalized, because three out of four customers look for their information via online channels, such as company websites, search engines or comparison services.
Managing contract data via online channels currently does not play any significant role for policyholders. Although there is a very clear desire for an online option (80%), online management is coupled with strong price sensitivity for the Swiss people. 46% of policyholders would be willing to independently change their contract data (e.g. a change in address) on a website in exchange for a lower price.
The state of digitalization for the customer journey varies strongly
The degree to which the customer journey steps are online activities–such as procuring information or processing claims–heavily varies; factors such as age, social status or gender do not demonstrate any effect on digital affinity. However, there is an emerging trend of customers assuming various tasks themselves online if they have the option to do so. 63% would sign a contract online, 83% would process a claim notification online and 78% would cancel their contract online.
One-fourth of surveyed people have currently purchased one or more insurance policies from two to five providers; online-savvy people tend to have a higher number of providers. Even the preferences related to the type of communications means show differences. The trend is heading towards the PC, smartphone or app and is strengthened by the fact that a good two-thirds of respondents would provide all or limited personal information to receive a price discount. A majority of customers would also forego consulting at home and consistent insurer availability if it would give them a better price.
Creating the strategic and operative conditions
Insurers are increasingly relying on the connectivity of the online and offline world. Digitalization needs to be strategically incorporated in the company; at the same time, the operational possibilities for digital processing need to be created. Policyholders need to be precisely segmented for successful multi-channel management in order to optimally design the respective touchpoint and communications channel based on their digital affinity.
You can find additional information and download the full study here.