World Insurance Report 2013

Capgemini and Efma are pleased to present the sixth edition of the World Insurance Report (WIR). Insurance companies around the globe have worked diligently since the global financial crisis to reduce operational costs, and improve effectiveness. Those initiatives are now paying dividends, but market conditions remain tough, with few insurers able to raise rates as much as they would like, if at all, and investment income is still lagging. Insurers are nevertheless turning their attention to boosting revenues, and reducing acquisition costs-an expense that has remained stubbornly high.

Revenue growth depends heavily on keeping existing customers and attracting new ones, preferably by utilising low-cost direct-sales channels (Internet and mobile), which reduce the need for costly intermediaries. But direct distribution networks and channels (access points) are not just a boon for insurers; they are increasingly on the must-have list for insurance customers-who expect the same anytime/anywhere/any device service to which they are accustomed in other areas of their lives.

This report looks at the channel and other preferences of insurance customers by analysing data from Capgemini's Customer Experience Index (CEI), which was developed to provide a granular view of how customers perceive the quality of their service interactions across three dimensions: products, networks/channels, and customer lifecycle.

The CEI is built from data captured through Capgemini's Voice of the Customer Survey, which queried more than 16,500 customers in 2012 on their general satisfaction with their insurer, and also inquired more specifically about the importance of specific channels for executing different types of transactions, and for different types of products.

The CEI showed that channel strategy is a critical part of the customer proposition, and the report examines in more detail how mobile in particular is requiring insurers to take a step back and re-engineer their integrated multi distribution strategies. The report looks at channel strategies through the prism of Capgemini's Multidistribution Model, first introduced in the WIR 2009.

More generally, the findings of the WIR 2013 draw on research insights from 41 countries and included in the research were 114 interviews with senior insurance executives.