Insurers are waking up to the need
to adapt marketing strategies to keep pace with the rapid changes
phenomena such as social media and mobile technology are bringing
about, reveals a study by management consulting and technology
services provider Accenture.
Based on a survey of executives at
125 life and general insurers in 24 countries in North and Latin
America, Asia, Europe and Africa, Accenture found that, on average,
they plan to invest $84m over the next three years to improve their
multi-channel distribution strategies. In particular, insurers will
shift investment priorities to mobile technologies, digital
marketing – including social media such as Facebook – and channel
integration.
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Accenture noted that while some
insurers said their current investments are already focused on
creating mobile capabilities, improving digital marketing and
integrating channels (19%, 34% and 36%, respectively), a much
higher%age of insurers are planning or considering investments in
these areas in the near future (62%, 49% and 44%,
respectively).
But investing in new opportunities
is not enough, warned Serge Callet, global MD of Accenture’s
insurance practice.
“Increasing investment in mobile
capabilities to take advantage of growing use of smart phones and
digital marketing to create new opportunities to influence customer
choice is necessary but not sufficient in today’s environment,”
said Callet.
He explained that consumers are not
simply replacing one channel with another, but are diversifying and
using more channels than ever for their needs.
“The challenge facing insurers is
to develop a distribution strategy that capitalises on the
strengths of each respective channel and that will allow them to
match the right customers with the right products and services, at
the right price, through the right channels,” said Callet.
Accenture found that only 14% of insurers currently customise
products, promotions, channels, services and pricing strategies to
specific customer segments. However, the proportion is set to
increase with 26% of insurers surveyed saying they intend adopting
this approach in the next three years.
