27th July 2016

A recent survey of UK consumers has revealed that penetration of self-service for car and home insurance is greater than ever. Up to 60% of policyholders use online self-service, with 37% of respondents using online portals to manage both car and home insurance, and a further 23% using the technology for at least one of these insurance lines.

The survey, conducted by Censuswide on behalf of CDL, supports the claim that technology is driving changes in consumer behaviour, attitudes and expectations, creating an 'expectation economy'. In this new and ever-evolving expectation economy, businesses that are not up-to-the-minute with latest technological advances risk being left behind, with tech disruptors having redefined the 'norm' when it comes to waiting times and service levels.

The 'expectation economy' has been coined to describe the rise in customers who expect instant access and instant service. Indeed, the key benefits of self-service cited by the 2,000 respondents were ease of storing and accessing documentation and policy details (74%) and time savings (59%), while more than four out of ten have used their portal for renewals or to generate new quotes.

Since the introduction of Uber and Amazon, there has been a dramatic reduction in the amount of time customers are prepared to wait in order to access a service. Now more than ever, people are time-poor and value the convenience of 24/7 access when it comes to buying and managing their insurance.

With online self-service portals removing operator intervention in tasks such as mid-term adjustments, renewals and the generation of new quotes, customers do not have to experience the waiting times and potential delays associated with calling up a contact centre.

The ability to make policy adjustments and access insurance online is increasingly becoming the norm, and represents the logical next step for consumers who are already buying their insurance over the Internet.

Despite this, the survey also revealed that obstacles to full adoption of self-service still remain. These included preference for dealing over the phone (42%), preference for dealing in person (20%), and privacy concerns (24%).

Even with the birth of the expectation economy and the pace of technological innovation, it is no surprise that barriers remain to full self-service. The consumers who feel less confident about buying insurance, have more complex requirements or are concerned about online security will always value the opportunity for more personal interaction with a provider.

It is for this reason that retailers must remove obstacles to service, and offer full multi-channel access and interaction through online, telephony and webchat. This is vital in delivering a 21st century digital experience and ensures that neither the traditional or tech-savvy consumer is left behind.

To meet the demands of 21st century consumers, retailers must stay ahead of the curve by reducing waiting times in all cases and boosting functionality through technology with touch-points at every level. Ideally, self-service technology should support instant access to both automated and personal services via multiple channels, and allow for a seamless experience as consumers switch between them.

Interestingly, the survey highlights one in five customers who are open to the idea of self-service but bemoan a lack of availability of an online portal solution from their insurance provider.

With 66% of customers reported to have switched brands or business due to poor service (Accenture Global Consumer Pulse Survey), low brand loyalty means that retailers who are unable to provide the latest service solutions face the very real threat of being abandoned for their competitors.