Retaining a Younger Generation of Customers

PropertyCasualty360.com covered an interesting study recently conducted by Deloitte called “The Voice of the Personal Lines Consumer: Buyers in the Driver’s Seat.” The study found that 40 percent of people surveyed had been with their insurance agent for over ten years. This is an impressive statistic that shows good insurance agents are still needed, even in a time where technology is increasingly replacing human interaction.However, the majority of these loyal customers are above the age of 35 and the study found that younger consumers are more likely to change carriers every year at renewal. The study also found that technology such as mobile apps, websites and online tools and services that provide 24/7 access for consumers to communicate with carriers are key to acquiring and retaining younger customers.

Insurance carriers that can create the perfect balance of convenience from technology and the helpfulness of a human contact will be the companies that are able to attract and acquire younger customers and retain them through each stage of their insurance needs, from renters insurance to homeowners for example.

One more important finding of the study worth noting; consumers are most likely to change carriers no matter what their age after filing for a claim, especially if they’ve had a bad claims experience.

All of these findings point clearly to the need for carriers to invest in tools and technologies that remove friction from every step of the insurance process, from underwriting to filing a claim and on through the inventory, valuation, settlement and replacement phases. Taking these steps can have a tremendous impact on customer satisfaction and retention, on top of the cost savings carriers benefit from by streamlining the process across the board.

So, if you still have some technology enhancements on your “to do” list for 2012, the year is nearly half over and there’s no time better than now than to move technology to the top of your list as a top goal to achieve in the coming months. It will be a win-win for your customers, agents, brokers and your CFO.

What recent technology implementations have had the biggest impact on your bottom line?

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