This is not the best of times for insurance companies. Annualized life premia sales fell by 23 percent in the first half of 2009 while premium sales fell 20 percent in the first quarter alone. Moreover, policies purchased fell 4 percent in the second quarter.
This is the result of the ongoing downturn in the economy. To better understand the decline, let's examine customer satisfaction trends by looking at data from the American Customer Satisfaction Index and the Financial Services Customer Experience Survey 2008
From the above data, it is clear that customer experience can make or break a deal for insurers. And the need to care for customers as efficiently as possible has never been more critical, thanks to increased competition from newer providers who aggressively use the internet as a channel. As a result, the older – more traditional – players have had to invest significant resources to move to a direct-to-consumer business model as compared to the more traditional channel model which is dependent on third-party brokers or independent insurance agents.
This change is challenging for the channel shift to happen seamlessly. Insurers must overcome six challenges which affect the growth of their businesses
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