How to weather the perfect storm of an uncertain economic outlook, evolving customer demands, and increased regulatory oversight
Even before the recent financial crisis, the life insurance industry was experiencing a shift in customer trust and demand. The crisis and its aftermath have served as a catalyst to accelerate this trend with a consistent drop over the past five years in penetration for the global life insurance industry. Moreover, customer trust in the insurance industry is among the lowest when compared to other industries.
The changing landscape of the life insurance industry and the after-effects of the financial crisis are causing a perfect storm of legislative changes, customer demands, and economic uncertainty. These in turn are causing significant challenges for insurance companies now and in the future. This perfect storm is having a significant impact in three key areas for insurers: product portfolios, competition and costs.
To weather the perfect storm, insurers need to focus on products, distribution, customers and competition. Capgemini has found that a focused product approach combined with an enhanced distribution strategy and customer service approach can help insurers gain a competitive advantage.