Furthermore, in life insurance in particular, there will always be some customers who prefer to be advised by a real person and who are willing to pay a little more for it. Firuzan Iscan: One of our renewal-agenda items is digital by default, but it’s not just digitization of our processes. Select topics and stay current with our latest insights, An insurer’s journey to better customer experience: A conversation with Allianz’s Firuzan Iscan. Noting that COVID-19 has been the catalyst for unprecedented change in nearly every sector, the company highlights that insurance carriers have been particularly affected by the operational challenges presented. A personalized insurance engine enables quicker and simpler interaction and ensures each customer gets the most suitable product in line with his or her individual situation. Finanzmarktpanel, Growth from Knowledge, 2019, gfk.com. 2 Digital business models mean that each customer touchpoint is also a point of sale, so customer centricity needs to be a core value: if the offering doesn’t meet the customer’s expectation, all they need to do is click out—and the customer is gone. The first, of course: once a customer becomes loyal, he or she tends to retain his or her policies with us. Globally now we are using the same approach. 8McKinsey & Company Since 2009, the Consumer Decision Journey has covered over 125,000 consumers across 350+ brands in 30 different industries SOURCE: McKinsey CDJ data 2008-2017 Financial and insurance companies (e.g., core banking, wealth management, insurance) Geographies studied Consumer electronics and telecom companies AutomotiveConsumer goods … Head of customer and distribution experience. Flip the odds. By focusing on supporting these individual interactions across channels, insurers can be better positioned to provide an excellent experience and strengthen … The majority of insurance customer journeys get interrupted or stalled. During the journey design process, agile insights can then be used to rapidly test new ideas and journey steps with customers, with more scale than traditional focus groups. We use cookies essential for this site to function well. Take a patient journey lens. McKinsey Global Institute. McKinsey Global Insurance Pools, 2019. Digitalization and technological advancement have always been top priorities for Otto Bitterli throughout his career at Sanitas. Subscribed to {PRACTICE_NAME} email alerts. McKinsey has found that five best practices increase the chances of success: strong executive ownership and a clear mandate for cross-functional journey owners to drive change across the organization. Applying design thinking to the customer journey in life insurance requires a fundamental shift along four dimensions: Instilling customer empathy. Psychological safety and the critical role of leadership development, The COVID-19 recovery will be digital: A plan for the first 90 days. When we think from the customer perspective, most of our customers are hybrid customers. The prospect of a personalized insurance engine will shape the industry over the next decade, with technology giants and insurtechs pushing the pace of the development. Firuzan Iscan: I think that’s the most challenging subject, because it’s not one function’s responsibility in the organization. Ranking: Insurers, ServiceValue, 2020, servicevalue.de. When a customer does submit a claim, the first notification of loss (FNOL) … We will continue to work on this subject. McKinsey: How do you mobilize the organization behind the goals that you described, about becoming more customer oriented? Then we developed digital tools, and then we tested them with our agents. We cannot just focus on online or offline. Insurance distribution channels 2019, German Insurance Association (GDV), 2019, gdv.de. Uwe Stuhldreier: Of course, the cost advantage of the personalized insurance engine will be felt more quickly among digital natives with the tools and infrastructure already in place. It is an ambitious target. McKinsey: How and when did you realize customer experience should be a priority for Allianz? Other journeys are industry-specific: for example, utilities might realize that when a customer moves, it represents a moment of truth. collaboration with select social media and trusted analytics partners Our flagship business publication has been defining and informing the senior-management agenda since 1964. Most transformations fail. Most often, the answer manifests as utmost simplicity and ease in digital communication, and price advantages for the customer. The technological aspects require a range of new capabilities such as real-time data management for closed-loop marketing—tracking customers across all touchpoints with the insurer. in McKinsey’s Dallas office, Dave Elzinga is a principal in the Chicago office, Susie Mulder is a principal in the Boston office, and Ole Jørgen Vetvik is a principal in the Oslo office. It is an ambitious target. A personalized insurance engine enables quicker and simpler interaction and ensures each customer gets the most suitable product in line with his or her individual situation. The concept of “multi-access” represents a more granular look at the customer journey. Of course, we are using cross-functional teams, but we need to give leadership, project-management leadership, to business owners to involve them more and also to accelerate implementations. For example, several service industries, such as insurance, banking, utilities, and telcos, have similar “I join” and “I quit” journeys. Unleash their potential. Uwe Stuhldreier: Insurance is an inherently complex industry, and building a personalized insurance engine is no simple feat. Economic growth across the continent is actively reshaping Africa’s historically underdeveloped insurance market according to a recent report by McKinsey and Company, which outlines the trajectory of the African insurance market’s growth an Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Learn about 1. Firuzan Iscan: Three years ago, in Allianz Turkey, we introduced a digital agency and digital customer program, part of our digitization initiative. . Since its founding in 2000, HUK24 has been at the forefront of online insurance services (see sidebar, “About HUK24”). Press enter to select and open the results on a new page. Please use UP and DOWN arrow keys to review autocomplete results. True customer centricity was in the middle of five renewal-agenda initiatives, and actually we started from this point to think about how we can build a customer-centric organization and how we can improve customer satisfaction. Uwe Stuhldreier is the chief marketing and sales officer of HUK24, the largest direct motor insurer in Germany and the direct insurer of HUK-COBURG. However, especially given the dramatic shift toward digital interaction brought on by COVID-19, the shift to digital in insurance is underway—with increasing pressure to automate in order to realize efficient cost structures and therefore be able to offer competitive prices, and to meet the immediacy that customers expect from other industries. So 90 percent is about culture, and that’s why through these projects and through all these initiatives we want to involve more people in the organization; we want to include all stakeholders. We built a very efficient mechanism to serve our customers, but actually customers don’t experience the processes; they are experiencing the journey, so that’s why we changed our perspective from process into journey. Consultancy company McKinsey & Co continues to chart the evolving insurance/insurtech market in its latest report ‘Insurance productivity 2030’. However, only one in 10 insurers in McKinsey … Insurers with digital business models are leading the charge at a time when customers are increasingly demanding the sophisticated, on-demand tools they know from other industries, from retail to healthcare. In the ultimate stage of the journey, the risk function creates value by integrating ERM with corporate strategy. Please click "Accept" to help us improve its usefulness with additional cookies. Consequently, we have to monitor points in the journey where customers routinely get stuck and proactively apply fixes to reduce the need for human help. McKinsey: How do you scale that on a global basis for such a large organization? We want to start again from our customers. And when the CEOs, the executive teams commit on these initiatives, then we can expect more from cross-functional teams. The analysis confirms what has been true for decades: there is significant variability among top insurance companies. We spoke to HUK24 executive Uwe Stuhldreier on how the personalized insurance engine works, how it can cater to customers’ needs, and how it may become an important game-changer for the insurance industry going forward. If you continue browsing the site, you agree to the use of cookies on this website. … As McKinsey starkly puts it: “Acknowledging the urgency to undertake a digital transformation – both to reap its rewards and fend off threats – is one thing. When we introduced our customer-centricity initiative two years ago, it was not clear for many people, but now we have a common understanding of our main purpose, of our aim. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Firuzan Iscan: I think the most important thing is that we’ve started to change the company. Please click "Accept" to help us improve its usefulness with additional cookies. I think we need to involve more business owners in order to implement faster. I can say that we are running all these projects, we are designing solutions, but when we come to the implementation, it’s not easy. Please use UP and DOWN arrow keys to review autocomplete results. collaboration with select social media and trusted analytics partners Harald Fanderl is a partner in McKinsey’s Munich office. McKinsey: What has your approach to digitization been? Overall, 72% of the respondents expressed concern about at least one type of healthcare expense (Exhibit 1). Unleash their potential. Insurers are on the cusp of a new era of claims management, one supported by rapid technological advancements that provide unprecedented visibility into the claims process. Please click "Accept" to help us improve its usefulness with additional cookies. Flip the odds. We started to analyze customer journeys first: health-claims journey, pension-communication journey, and motor-claims journeys, and we identified some pain points.

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