The 3 D’s changing customer expectations in the insurance industry is an overlapping interconnected cycle that seems to be driving the future of the insurance industry.
Our society’s demographics are changing and the insurance industry needs to enhance their use of digital and data to produce better targeting, positioning, customer service, and product development that meets the changing demands of consumers.
A discussion about changing demographics naturally points to Millennials, and this cohort simply does not lead the same lifestyle that their parents did when they were the same age (18-34). As simply put in the March 2016 IBM Commerce Blog, “Millennials don’t want the same insurance products Baby Boomers do because millennial households don’t look like ours!”
The emergence of peer-peer insurance, the internet of things, and more online services than ever before can possibly be traced in response to the unique needs that are emerging from Millennials’ lifestyles – for example, many Millennials are renting over owning and making purchase decisions based on experiences, not by what they’re told. An IBM Institute for Business Value survey reports that “89% of millennial consumers believe friends’ comments more than company claims” and “93% of millennial consumers usually read reviews before making a purchase.”
As mentioned in the 2016 Trends and Predictions Trends Paper by Phil Cook, many of the new licensed drivers our industry will insure this year were born in the 21st Century (i.e. post Y2K). They will also become our direct consumers in a few short years and we better be prepared to meet their needs, and even more importantly as an industry, to begin the process of defining those needs for them.
So how can the insurance industry provide Millennials with the Amazon Experience - the right product, competitive prices, good service and seamless delivery, all served up digitally? Join the CIP Society on June 2 for the live webinar, The 3 D’s changing customer expectations in the insurance industry: Digital, Data, and Demographics, where Donal Corcoran, Canada Executive Vice President, Consumer Insurance at AIG Insurance Company of Canada and Marc Lipman, Chief of Staff at AIG Insurance Company of Canada will discuss if the insurance industry is ready for these rapidly changing demands compared to other services industries and how our industry we can keep up advancements in these innovations.