How Capgemini’s CARE approach paves the way for better customer service

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Insurance companies are racing to furnish their distribution channels with tools to support superior, seamless customer experiences.
Capgemini’s 2021 World Insurance Report explores how the current distribution models are being challenged and how technology can supercharge channel effectiveness and revenue. The report reveals that new age Insurtechs are leveraging significant capital inflows to boost technological development and fuel innovation, turning up the heat on traditional insurers. In doing so, they’re able to offer greater personalisation and place more emphasis on customer experience.
As more policyholders engage with digital intermediaries, insurers of the future will boost both digital and face-to-face channels to enhance customer experience and generate value and speed to compete with emerging platforms and players. A strategically designed digi-intermediation plan will empower agents and brokers while encouraging new and expanded digital intermediaries

explain Anirban Bose (Financial Services Strategic Business Unit CEO & Group Executive Board Member, Capgemini) and John Berry (CEO, Efma).

The COVID-19 pandemic changed the structure of everything we experience, from how we work and socialise to how we shop. A survey by Freshworks, a customer and employee engagement software company, found that post-pandemic customers are more empathetic – but also more demanding. Among its conclusions, it found that 68% of customer service managers have seen an increase in customer expectations since February 2020, and 71% experienced an increase in overall contact volume and expect it to increase further.

In its 2021 Global Marketing Trends survey, Deloitte Consulting found that modern customers recognise service enhancements. 58% of respondents were able to name at least one brand that made improvements to its customer experience after the outbreak.

The smartest customer service leaders are doubling down on investments in technology that helps improve customer service,

says service transformation practice leader at Deloitte Digital, Andy Haas.

Capgemini’s CARE approach – Convenience, Advice, REach – integrates humans and machines to drive a more meaningful, productive, and frictionless digital customer experience. Something that many insurance companies aspire to provide, but few achieve. Today, policyholders no longer hesitate to drop a service provider in pursuit of a more effective CARE solutions provider. 

Insurtechs are leveraging the inflow of investor capital to further improve CARE offerings through digital technologies, including Artificial Intelligence, advanced data analytics, application programming interfaces and the Internet of Things. They’re mindful of customer expectations and, while convenience has been at the centre of their focus, their attention is now shifting towards reach.

The insurance industry is evolving, the keyword for its future is modularity. Insurers must be prepared to tackle a broad range of future scenarios. Modular offers, systems and organisational structures will be indispensable to creating a robust and responsive value change. In the coming years, industry players will be defined by their strength within a hyper-specialised value chain, and insurers will increasingly become orchestrators,

– said Anirban Bose, CEO of Capgemini’s Financial Services.

Insurance is moving from product selling to customer CARE and protection, and as the lines between insurance industry participants blur, the report predicts two scenarios emerging enabled by continued access to capital:

Embedded insurance as a value add within third-party ecosystems: Coverage is embedded at the point of sale or point of service, becoming virtually invisible. The business model evolves toward a B2B2C proposition, where ecosystem partners control customer relationships.

Embedded insurance as a value add within third-party ecosystems: Coverage is embedded at the point of sale or point of service, becoming virtually invisible. The business model evolves toward a B2B2C proposition, where ecosystem partners control customer relationships.

Added value at the core of complex offerings: Insurers evolve from selling products to CAREing for customers through predict-and-prevent propositions enabled by AI and analytics.
As traditional insurers expand their ecosystems to remain competitive, they must increasingly consider the value achievable through trusted partners, including BigTechs, InsurTechs and non-traditional players like original equipment manufacturers (OEMs).

The numbers clearly suggest that exponential InsurTech growth is here to stay therefore delivering superior customer CARE is essential. Future success in the industry will depend on players’ existing capabilities across the value chain, willingness to invest, and desire to own the customer relationship,

– said John Berry CEO of Efma.

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