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A report released last week by Arkansas-based marketing company Axciom in conjunction with SourceMedia Research reveals some of the top issues that insurance industry leaders face during this unprecedented period of martech growth and rising customer expectations.
Insurance product categories included in the report were: life, property/casualty, health, annuities, investments, and worker’s comp.
The survey found that more than half of insurers use ten or more martech platforms and fully 80% plan to increase their martech investments within the next year.
Top martech challenges facing insurance industry leaders
It’s clear the insurance industry is grappling with establishing a framework for ensuring quality and accuracy of their customer data.
Defining data ownership and siloed data are two of the top challenges facing insurance industry leaders. Other challenges include ensuring data quality, integrating legacy systems, creating distribution channels and maintaining privacy.
Avoiding negative perceptions and establishing trust from customers were key pain points among insurance marketers.
Nearly 80% of customers indicated that they are willing to take their business elsewhere if their experience with the insurer wasn’t hyper-personalized.
Key findings of the study revealed that 23% of insurance executives consider enhanced customer experience as their primary marketing success indicator in 2019. But good customer experience requires investment in new technologies and this can often lead to even further fragmentation unless a clear plan is in place.
About 75% of insurers use between five and 14 martech solutions, an indicator that data fragmentation is a problem in the industry. Insurers understand that customer satisfaction is tied to changing expectations. The report revealed these expectations include the following:
- Cross-channel personalization
- A seamless customer journey
- Accurate, secure, and private data
- A variety of buying choices including when, how, where, and from whom
- Real-time responses and interactions
- Experiences comparable those in other industries outside of insurance
Top martech opportunities facing insurance industry leaders
The push to manage data fragmentation and provide seamless customer service may be challenging, but it also provides insurance companies with the opportunity to become industry leaders.
Roughly half of insurance customers said that most brands fall short of delivering a great customer experience, while nearly 70% of consumers admitted that their standards for a good experience are higher than ever.
Companies can streamline the process of implementing critical new martech solutions by priotizing their objectives and creating a plan to integrate their data framework. In fact, industry executives indicated that their top planned martech investment over the next year was a unified customer data platform (CDP) followed by investing in analytics and reporting.
You can view the review the full report at Axciom’s website.