Targeting Innovation: How Your Customers Might Respond

by Craig Weber,  Michael Fitzgerald, April 14, 2015
Industry Trends
Global

Abstract

Delivering innovation is an increasingly important element of insurers’ strategies, But do customers recognize the value of innovation in insurance? How are they likely to respond to various types of innovation, and will this impact their loyalty?

This report from Celent looks at how insurance innovation initiatives are viewed by consumers. In a survey designed to probe several of the most likely areas for improvement, consumers voiced their opinions on specific service, product, and sales investments.

“The voice of the customer comes through loud and clear,” says senior analyst Mike Fitzgerald, who coauthored the report with Celent’s CEO, Craig Weber. “They highly value improvements in service processes and want to see these prioritized ahead of changes to sales and product.”

“A robust 76% of respondents rated innovation target areas as high potential or modest potential, suggesting that consumer appetite for innovation is high,” says Weber.

The report provides customer scores on both improvement and retention. It uses a segmentation approach to illustrate which innovations are most important to specific customer groups.

The report is based on a survey of over 800 consumers in North America.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

 

Key Research Questions

3

Consumer-Led Improvement and Innovation

4

Rating Potential Improvement Areas

5

 

Highly Digital Vs. Analog Consumers

6

 

Active Vs. Passive Consumers

8

Innovation’s Impact on Loyalty

11

 

Pleasing the Highly Digital — The Value of Experimentation

12

Conclusion

15

Leveraging Celent’s Expertise

16

 

Support for Financial Institutions

16

 

Support for Vendors

16

Related Celent Research

17

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