The Bolt Executive Summit on May 6, 2015 brought together more than 60 senior Insurance industry executives to discuss challenges and opportunities presented by the significant changes underway in the industry. This blog post is the third in a series recapping the event and its content. In this post, we’ll take a closer look at the information presented by Bolt’s own Tom Hammond, EVP Insurance Operations at Bolt. Please subscribe to our blog to ensure you get our updates directly in your inbox.
Thank you to everyone who participated in the Bolt Executive Summit, especially all of our speakers and attendees. During the event we heard from Celent and Google on why and how insurance is changing. Bolt is proud to be a partner for insurers looking for ways to navigate this changing landscape by enabling a better way for consumers to choose and buy insurance. The following is a summary of what we presented at the Summit:
The new reality:
- 70% of insurance shoppers use the internet
- 40% of insurance shoppers are on mobile devices
- 65% would consider purchasing insurance products from organizations like Google, Amazon or Verizon
The market is changing – beginning with consumer behavior, which is driving changes to distribution and ultimately, how insurance is bought and sold. During our session we looked at how the internet is powering consumers across all channels and how Google’s new role in compressing the insurance purchase process, is pressuring insurers to heighten their focus on fulfilling customer needs online and offline. We also looked at how the ubiquity of mobile devices is impacting the industry. Consumers are using their mobile devices to locate agents, gather information, get quotes and compare prices. In addition, more than half of people surveyed indicated that they are likely to buy auto insurance from a mobile device in the future. The convergence of these trends demonstrates the omni-channel imperative that will soon define the insurance industry.
What we’re seeing: customers want all of their insurance needs met in one place
In addition, we shared how consumers shifting preferences are problematic for the single carrier model, which we have found to satisfy only 40% of flow. In response, carriers need to evaluate how the following four expectations will impact their business:
- Involvement in Choice Models are now expected and a foundation to building your brand forward
- Carriers must bundle - even if the bundling and combining means selling non-proprietary products
- Carriers need to offer the right product for the customer from the right carrier, and be competitive
- It's not just price - it's about the fulfillment of needs
We recently conducted a survey that sought to identify the most important factors to consumers in choosing an insurance policy, which found that consumers were most likely to consider coverage even before price. In addition, the survey produced the following insights into the minds of insurance customers:
Attitudes of insurance: Customers are intimidated by insurance and have a low level of confidence in their current coverage.
Perceived critical needs: Customer’s personal relationships with agents tend to solve their overall uncertainty regarding how much coverage to carry and boost their confidence in the policies they purchase.
Cost perceptions: Customers perceive it to be a significant hassle to shop for insurance. Customers focus on dollar amount to determine how much time to devote to shopping around.
Servicing: Customers expect proactive contact by agents. Insurance is important to people, but running their day-to-day life is more important to them.
Unmet needs: Overall, most respondents in the survey were not getting the service levels they wanted, but many did not realize it on an unaided basis due to low level of involvement and interest in the topic.
The Bolt Executive Summit unequivocally demonstrated the huge shifts underway in the insurance industry and the need for carriers to embrace and adapt to these changes in order to succeed in the future. As a trusted partner to some of the biggest insurance companies, we at Bolt challenge you to ask yourself one question: Can I always say “yes” to my customers?
If the answer is no, we encourage you to get in touch so we help you begin providing a better way for your customers to choose and buy your products. The Bolt Platform is helping insurers always say “yes” to customers and in doing so broadening carriers’ distribution and customer relationships to succeed in this new omni-channel reality.
Contact us to learn more about how we can help you today.
See the other blog posts in this series:
See what others are saying about the Bolt Executive Summit:
ITA Pro: Google Compares Personal Auto Rates
Insurance Innovation Reporter: Google’s Distribution Disruption: Insurers Must Be Where the Customers Are