As customers are more likely to accept insurance products nowadays, insurance companies have also launched various insurance policies to meet customers’ need. 「Spillover Policy」is one of examples, that buyers could cut down their premium rate by reducing the risk or improving their body health. For instance, drivers could reduce their auto premium rate by maintaining good driving behaviour.
Salesperson is not the only channel for insurance purchase
Salespersons are no longer the only channel for customers to buy products in recent years. Based on the past result of market research, customers appear to buy insurance-based investment products via banking channel. Because financial specialists not only well understand customers’ financial condition, but also can take insurance into account while making financial planning. Besides, it helps to avoid pressure from salesperson. According to the data from The Life Insurance Association of the republic of China, of the premium income from insurance policies in 2009, the income from banking channels has surpassed that of insurance salespersons for the first time and maintained more than 50% until now.
- Online insurance platform or telephone sales also provides an easy way for customers to purchase.
- As more customers get used to financial management through online platform, Financial Supervisory Commission has allowed Insurance Brokers and Agent Companies to implement online services for insurance buying since 2015.
Salesperson dominated past, brand dominates future
As customers primarily relied on salesperson for the past decades, interaction with salespersons appeared to have great impact on customers’ decision. Insurance companies could simply put their efforts in training their in-house sales team for better professional service and brand value delivery. However, with multiple channels emerging in recent years, customers prefer to search information by themselves rather than relying on salesperson’s advices. Hence, customers’ perception toward an insurance brand becomes more important because they might come across the products from different brands via different channels, and might easily get confused to make the best choice among all.
Integrate service from each channels & build distinctive brand image
Nowadays, customers have more autonomy to make decision and tend to compare multiple brands as information are more easily accessible. When product contents have little difference, brand power play an important role in this regard. In face of future market, insurance companies cannot just focus on “functional benefit” of product but should more on “emotional benefit” brought by brand value.
To avoid conflicting perception brought about by inconsistent service, insurance companies should reexamine and integrate each channel’s service procedure to deliver clear, credible brand message.
Actively understand customer satisfaction & build positive “word of mouth”
As information getting widely accessible, customers not only look for “word of mouth” from family and friends but also “word of mouth” that are perceived to have strong impact on brand credibility and reputation, particularly in insurance industry. In addition to reexamining each channel’s service procedure, insurance companies should start valuing each service experience brought to customers and understand customer’s satisfaction.
At Ipsos Loyalty, our Social Listening tool, together with our research expertise, enables us to capture salient Voice of the Customer and to discover customers’ opinions that are difficult to be identified through traditional research method. In application of social listening in insurance, we can regularly monitor what is being said about insurance brands from online, and identify positive and negative sentiment of article writer. By translating large volumes of differing data types into useful information, Ipsos can provide not only knowledge but also actionable insight to drive client’s business.
New brand-building direction for insurance industry
In short, in face of this fast-information-spreading world and fast development of different channels, insurance companies should make more effort to build distinctive brand image in a comprehensive way. To strengthen delivered brand image, insurance companies should pay more attention to the moment that customers interact with insurance companies. Either by reinforcing the interaction with receptionist on the front line or by setting standard service procedure, insurance companies should try their best to make customer have positive impression toward brand in every moment. Hence, how to deliver brand message and effectively understand customers’ opinions in a comprehensive way will be a key factor to enhance brand likeliness and loyalty in the future.
[WEBINAR] Innovation through the consumer lens
November 12 - Even established financial brands are at risk of losing influence and market share as innovative new entrants begin to inspire and occupy the attention of consumers. So, what is it that is appealing to consumers, and why aren’t we listening to them more?