New study from IDC and Liferay analyses customer experience trends in the insurance industry
Despite the impact of COVID-19 on the global economy , the insurance sector is one of the largest business process optimisation technologies investor . In fact , IDC Research estimates that the IT spending in this segment will rise at a Compound Annual Growth Rate ( CAGR ) of 6.0 % globally to 2024 , reaching a market size of US $ 135 billion . According to a joint InfoBrief by IDC and Liferay , this can be primarily attributed to the fact that 73 % of the financial services industry is projected to maintain or increase IT spending compared to 2020 .
The technologies that will drive this growth are related to optimisation and customer centricity . Among IT spending in the insurance sector , Customer Experience ( CX ) will have a 37 % market share by 2024 , rising at a CAGR of 17.5 % to reach US $ 50 billion .
On the other hand , providing an excellent and personalised experience to new digital customers is a must for any insurer to build loyalty and long-term relationships , with 60 % of insurers saying attracting and retaining customers are their top priorities .
As consumers continue to evolve on their digital needs and preferences , they require new ways of interacting with the brands .
Today ’ s tech-savvy customers are not just ready for self-service but prefer self-service over assisted service . IDC and Liferay ’ s study shows that 55 % of insurers already have or plan to develop a customer dedicated online portal . Omnichannel engagement and frictionless insurance are strategic priorities related to CX that best describe what insurers expect to accomplish to achieve their digital mission .
It is also necessary to prioritise key Digital Transformation use cases and develop a Digital Transformation roadmap to evolve to the future digital state .
IDC research also reveals that 60 % of insurers have a plan to implement personalised communications for customers .
In order to simplify and customise these experiences , insurance companies should incorporate intelligence to internal and external processes for a better understanding of the customer journey , and also , align their organisation with the corporate perspective , strategy and systems .