The insurance sector, its transformation… and its limits (Argus/Sopra Steria study)

The insurance sector declares that it is fully committed to the customer relationship project, according to the Argus-Sopra Steria study. But it appears less invested in internal organization.

Doesn’t the world of insurance tend to underestimate the investment necessary for the evolution of working methods in its global transformation project? This is one of the questions that can legitimately be asked after reading the study carried out by L’Argus de l’assurance, in collaboration with Sopra Steria, concerning the various challenges of modernizing this industry.

First lesson: the insurance sector appears, in view of the figures of the study, fully committed to the transformation of its activity, and particularly in terms of the customer experience. No less than 91% of the decision-makers surveyed cite the improvement of this customer experience – the UX, according to the jargon in force – as a priority axis for the transformation of their company, ahead of the increase in operational efficiency (89%) and the development of the information system (86%). An essential priority, would not fail to add certain observers and professionals, who consider that this sector has fallen far behind with regard to the standards imposed by the Gafa – the giants of the Internet and telephony – and other players in the new economy. This perception, however, is contested within the profession, since a very large majority of respondents (61%) consider that their company is ahead in terms of thinking about the successful customer experience.

91% of decision-makers cite improving the customer experience as a priority

Business Development

In any event, the priority given to UX appears to be at least consistent with the main objectives pursued by insurance organizations during their transformation project, namely commercial development through the acquisition of new customers (91 %) and customer retention in the portfolio (89%). As for the actions already undertaken to improve this customer experience, comes first the digitization of the subscription and management processes (79%), followed by the improvement of interactions with customers (78%) and the expansion of the distribution scope. (68%)… far ahead of the enrichment of service offerings (50%) or the creation of a distribution platform.

Methodology

Study carried out online by Infopro Digital studies from October 27 to November 22, 2021 for L’Argus de l’assurance and Sopra Steria among 150 decision-makers in the insurance sector.

Blocking points

Conversely, and more surprisingly, the issue of internal collaboration and organization methods ranks at the back of the list of decision-makers’ concerns. They are even 20% of them to consider as not a priority what is now called the search for agile methods. One might think that the needs in this field are met, but no! Nearly 40% of the professionals surveyed recognize that their company is somewhat behind or very behind in this area of ​​change, a score well above that recorded for the customer experience (33%). And the functioning in silos, so often announced as being on the way out, persists more than ever if we stick to the results. With 33% citations [plusieurs réponses possibles, ndlr]the item “Our organization makes cross-functional collaboration difficult” ranks in the top three of the obstacles encountered by companies in carrying out a global transformation process.

In the classification of blocking points, this lack of organizational agility thus comes just behind the “outdated” nature of information systems. Except that the decision-makers are obviously fully aware of the need to develop their IS as a priority, as evidenced by the IT investment budgets in insurance. This is obviously less the case for the internal organization!

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