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Top three insurance customer needs

Marco Balzarini & Lukas Urech &

Digitalisation has created and will continue to create new markets. It has broken down industry boundaries and also violently shaken up the insurance industry along the way. Only if insurers are familiar with the needs of their customers can they withstand the digital tsunami.

Insight in brief

Top three trends for insurers:

  • «Simplicity wins»
  • Flexibility
  • Trust and guarantees as the basis for success

Insurers have to think strategically about their positioning and the depth of their supply chain. Not only do they have to know their insurance products and services of tomorrow and quickly digitise core systems, they also have to place their portfolio in attractive ecosystems.

Such a positioning has been assumed by, for example, the Swiss insurer Helvetia: its CEO Philipp Gmür stated at InsuranceCOM, the business-to-business platform of the insurance industry, that Helvetia specialises in the ecosystem Home. The insurer is pursuing the strategy to focus on this one area of life – with the aim of being at the place where the customer need usually arises.

The three central needs of insurance customers

Knowing the customer needs is no longer just a central area of focus for insurers, but is crucial for their survival as a result of rapidly developing digitisation. But many insurance companies are still getting stuck in this regard, because they do not grant the needs of customers enough importance. Currently, policyholders look for the following three aspects with regard to their insurance:

  1. Simplicity wins
    Simplicity wins, always. Customers want easy insurance policies that can be taken out with little effort – digitally, with a few simple clicks. They don’t want to register and enter their contact details just to wait for a call. They want to see the price and the included services immediately and want to be able to take out the insurance policy immediately.
     
  2. Customers love flexibility
    Policyholders want to be flexible. They don’t want to chain themselves to an insurer for years. Similar to the emerging trend among subscribers in the telecommunications industry, insurance customers also want monthly termination options and deadlines.
     
  3. Trust and guarantees as the basis for success
    Many of the points of contact between insurers and policyholders are by default negative, for example when the customer has to pay an invoice, handle increasing premiums (especially in the case of health insurance) or make a claim. Policies change, small print is too well hidden, vaguely defined dependencies emerge: the most damaging aspect for the customer relationship is when a claim, contrary to customer expectation, is not covered. Insurers keep customers only if there is confidence and this is boosted regularly and enduringly.

In order to meet these three central customer requirements, insurers have to act fast. It is time to put some work into intuitive applications, a coherent customer journey and transparent systems.

Marco Balzarini

Marco Balzarini

Consulting Director
Contact person for Switzerland

Bridging the gap between strategic orientation and implementable activities is one of Marco Balzarini's core competencies. He has successfully combined these elements for years in client mandates as well as in Zühlke's Leadership Team. He leads the Solution Center Digital Consulting Team and has been a partner of the Zühlke Group since 2015.

Lukas Urech Zühlke

Lukas Urech

Director Business Development
Contact person for Switzerland

For more than 20 years Lukas Urech has been helping companies implement digitalisation projects. He joined Zühlke in August 2016 and is responsible for the insurance business as Director Business Development. Lukas holds a MASt in General Management from ETH Zurich and specialises in solution-orientated business development. Creating value for customers is his number one priority.