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CEO Zurich: ‘Insurers fundamentally weak when it comes to customers’

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Insurers who still want to grow can best focus on real service towards their customers, said earlier this week CEO of the Swiss insurance giant Zurich Mario Greco. In the meantime, more and more insurers actually pick up this ball, whether or not out of opportunistic motives.

CEO Zurich: ‘Insurers fundamentally weak when it comes to customers’

The Financial Times picked out earlier this week with a big story about the identity crisis in which the insurance industry is according to business newspaper. More and more insurers are leaving the traditional business model where a (financial) risk is covered. Instead, the companies will actually help their customer if there is a problem, for example if the water pipe has burst.

Great opportunity
Hardly growth

Logically, analyst James Shuck of Citi Group says. “The customer does not want to buy a product. The customer wants a problem to be solved. “In many global insurance markets, there is hardly any growth, and insurers are faced with low interest rates and capital requirements.
Customized business model

Many insurers have responded to all these challenges with an adapted business model. The British insurer Standard Life no longer positions itself as such to its merger with Aberdeen Asset Manegement. The company now earns money by offering investment services to consumers who still want to make a little profit in these times, instead of taking risks themselves.
Babysitting service for insured persons

Other insurers make work in a slightly less drastic but surprising way. For example, Generali offers a babysitting service in Italy for insured parties who have to stay in hospital. Travel insurer Cover More offers psychological help and trauma nurses for tourists who have ended up in a disaster.

Mario Greco, CEO of Zurich (photo), is so enthusiastic about service that he last year about half a billion euros to cover Cover More to take over. “This is a great opportunity for the industry to be fully understood by customers, which was her Achilles heel for years. Consumers did not understand why they needed insurance. ”

Low loyalty customers

With the provision of services, Greco wants to increase customer loyalty in the insurance sector. “The entire sector has a fundamental strategic weakness when it comes to customers. Clients sometimes have 10 to 15 policies, but rarely more than two or three in the same company. Customer loyalty is low and this (service RP) is the biggest chance for growth. The industry will not have many other growth opportunities. ”
Limit costs claims

The article states that increasing customer loyalty is not the driver for all insurers to do more services. The shift to service is also a way to limit the cost of claims. Technology is an instrument to keep an eye on what customers do. Handy if you have to risk risks, but also good if you want to prevent damage. “Instead of writing a check when something bad happens, it prevents annoying things from happening,” says Shuck.

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