Insurers must confront the reality of their CX and move beyond transactional mindsets

Customer experience has a significant impact on cost, brand, and growth – which is why it must be at the core of everything businesses do. However, insurers confess they have fallen behind other industries as their attention has been focused on the likes of cybersecurity risks, rising interest rates, and supply chain challenges.

But that is set to change. Our research revealed that insurers are at a turning point for CX as they recognize it must become a top priority – but the path to realizing value is never straightforward.

To better understand the state of CX within the insurance industry, HFS Research, in partnership with Sutherland, surveyed 400 leading insurance executives and conducted interviews with a handful of key executives. The results provide valuable perspectives into the state of the industries CX, and how insurers are planning to transform it as we move deeper into 2024.

Key findings include:

• Fifty-seven percent (57%) of insurers agreed that customer experience (CX) has not been a priority in recent years as macroeconomic headwinds have diverted focus elsewhere.
• Forty-seven percent (47%) of insurers told us that improving CX is one of their most critical business objectives—a renewed focus after years of oversight.
• Almost 50% of insurers believe CX disruption is likely, yet investment plans haven’t translated into action. There is a gap between recognition and implementation.
• Insurers predict it will take them three to five years to achieve their CX goals, which means laggards still have time to catch up.
• Twenty-five percent (25%) of insurers measure the success of their CX initiatives through financial metrics, while 21% measure through retention rate. Insurers must define clear KPIs before embarking on their transformation journey.
• Forty percent (40%) of insurers believe they are a leader in CX, while 43% believe they are at parity with their competition. This suggests that insurers believe the lack of CX focus is an industry-wide challenge.
• Around three-quarters of insurers highlighted the same CX roadblocks around people, processes, and technology, which must be addressed.
• Sixty percent (60%) of insurers identified claims and servicing as CX’s most significant pain points.
• Around one-third of insurers plan to develop their CX capabilities internally. They must not underestimate the importance of ecosystems.

To read the complete report, click the download button below.