3 top insurance trends for retaining customers in 2023

The UK’s insurance industry has the second lowest customer retention rates, with around 40% of customers reporting switching their house or vehicle insurance, indicating that retention is a huge concern for insurers, especially given the high cost of customer acquisition (Deloitte).  

In this article, Kainos highlights 3 ways insurers are retaining more customers in 2023. 

Customers leave insurers for several reasons, including a lack of personalisation, poor customer service, and pricing. Customers of today demand simple interactions with their insurers. Thus, service providers must ensure that their channels provide an easy-to-use, seamless experience. Insurance companies can attract and keep consumers while enabling their agents and brokers to build stronger connections by investing in the proper technologies.  

Interesting fact- “Insurers focus will shift from growing revenue to improving customer experience & operational efficiency in 2023." (Gartner) 

Learn how 4 technology improvements could help you retain customers:

The competitive landscape calls for innovation into new capabilities to maintain customer base, this requires investment. Numerous firms are now ill-equipped to provide the sophisticated, tailored client experiences or effective servicing that customers need. However, strategic cost transformation has been identified as a strategy for long-term sustainable success.   

It involves creating flexible, scalable business models driven by better digitalisation and a customer-centric approach.    

Interesting fact- 76% of European insurance CFOs plan to reduce their enterprise-wide cost base in the next 12 months (EY). 

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Continuously changing customer demand means insurance firms must also operate with greater agility and efficiency than ever before. For example, claims processing, new customer applications, and customer service duties are just some of the tasks that traditionally consume valuable time and effort. Often this takes precedence over higher value work, such as delivering the tailored, personalised, and digital service today’s customers’ desire.  

This is forcing insurers to re-think processes and modernise the way they do business especially in today’s uncertain climate, where falling behind the pace of change is simply not an option.  

To keep up, the right tools and technology are needed to take out the paper, reduce phone calls, and enable the delivery of outstanding customer service.

Interesting fact- 41% of insurance interactions are negative for customers (Finextra).  

Find out more about how technology is changing the customer journey in our latest whitepaper on Customer Centricity in Insurance on the key trends impacting today’s insurance industry and how customer centricity can be achieved through digital transformation: