See how far Canadian consumers' trust in life insurance companies has fallen.
Over 40 per cent of Canadians have lost faith with life insurance companies, giving the industry the lowest trust rating on an Ernst & Young survey.
According to the survey, only 59 per cent of Canadian consumers trust life insurance companies. That’s the lowest trust rating compared to pharmaceutical companies (61 per cent), car manufacturers (64 per cent) and banks (81 per cent), signaling serious customer relationship issues.
"As insurers face challenges in retaining customers, there's work to be done in developing strong mutually beneficial relationships," said Marc-Andre Giguere, EY Partner and Canadian Financial Services Insurance Leader.
Digital communication channels and improved distribution strategies could help insurance companies better connect with consumers and gain market advantage.
By nature, insurance products are typically out of sight and out of mind, with very few interactions between customers and insurers.
"76 per cent of life insurance consumers are willing to use digital and remote channel options for different tasks and transactions. To stay relevant and enhance personal interaction, insurers must develop flexible and multichannel contact options like online chat, video tutorials and mobile apps," said Giguere.
To improve the effectiveness of existing contact channels and establish more digital options for consumers, insurers should invest time and resources to identify which channels customers want to use and how they want to use them. Pilot programs for specific product lines or regions can help build the business case for updating and optimizing distribution channels and service models.
Insurers can also improve their customer relationships by:
According to the survey, only 59 per cent of Canadian consumers trust life insurance companies. That’s the lowest trust rating compared to pharmaceutical companies (61 per cent), car manufacturers (64 per cent) and banks (81 per cent), signaling serious customer relationship issues.
"As insurers face challenges in retaining customers, there's work to be done in developing strong mutually beneficial relationships," said Marc-Andre Giguere, EY Partner and Canadian Financial Services Insurance Leader.
Digital communication channels and improved distribution strategies could help insurance companies better connect with consumers and gain market advantage.
By nature, insurance products are typically out of sight and out of mind, with very few interactions between customers and insurers.
"76 per cent of life insurance consumers are willing to use digital and remote channel options for different tasks and transactions. To stay relevant and enhance personal interaction, insurers must develop flexible and multichannel contact options like online chat, video tutorials and mobile apps," said Giguere.
To improve the effectiveness of existing contact channels and establish more digital options for consumers, insurers should invest time and resources to identify which channels customers want to use and how they want to use them. Pilot programs for specific product lines or regions can help build the business case for updating and optimizing distribution channels and service models.
Insurers can also improve their customer relationships by:
- taking responsibility for the overall health of all customer relationships
- greatly improving their customer intelligence by embracing advanced analytics
- acting predictively, precisely an nimbly in advance of key decision points
- being "easy to deal with" by offering relevant and timely solutions during critical interactions
