Insurance Customer Service Trends in North America

by Michael Fitzgerald, October 26, 2010
Operations/ Benchmarking
North America

Abstract

Organic growth and client retention have historically been key issues in insurance. The current economic environment and the outlook for the near term to medium term make them critical. It is more important than ever to keep the clients you have. Other than acquisition, the only way grow is to take business away from a competitor. The days of a rising tide lifting all boats are over.

Improving customer service is a logical response to the current challenges. It is a battleground for some companies as part of their chosen competitive strategy. For all others, it is table stakes.

A new report, Insurance Customer Service Trends in North America, examines the processes and technology in use in North American insurance companies. The goal in conducting this detailed data analysis and in talking to key carriers is to provide a snapshot of the organizational structure, skills, and automation employed to gain competitive advantage through outstanding service delivery.

“Going forward, the pie is going to get smaller,” says Mike Fitzgerald, Senior Analyst and author of the report. “Market growth will likely be below historical norms, making client retention and account rounding more critical than ever. Premier customer service delivery contributes to these goals.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

5

 

Methodology

5

 

Limitation

5

Respondent Demographics

6

Organizing and Measuring Service Delivery

9

People

12

Process

14

Technology

16

Conclusion

19

 

For Insurers

19

 

For Vendors

19

Leveraging Celent’s Expertise

20

 

Support for Financial Institutions

20

 

Support for Vendors

20

Related Celent Research

21

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