Digital Transformation has been on this year's agenda
Over 18 months have passed since we published our previous digital rankings (General Insurance Digital Experience) during which we have seen a lot of changes in the digital capabilities of the top UK Home and Motor Insurers. In this short article we summarise the key brand movements, identifying some of the changes that have been made.
The main headline is that Aviva no longer dominate the top 2 spots in both rankings as they have done in previous years with their Direct and QuoteMeHappy brands. Admiral have climbed a few spots from 2019 to overtake Aviva in the Household rankings in terms of their overall score, primarily driven by implementing a Quick Quote capability and some additional Claims FNoL functionality. Similarly in the Motor rankings, MoreTh>n have joined Aviva in top spot, closely followed by Direct Line and Hastings Direct.
The "Digital Donuts" from previous research have gone, but our new "Rankometers" show that at the top level, across all insurers and products, we have seen some positive movement in the Quote & Buy, MTA and Claims capabilities. Nearly all insurers in the research offer a Quote and Buy functionality online, however Quick Quote (for Direct Customers) has not progressed beyond the 3 brands that offered this capability in 2019 - only Admiral (Household) have added this capability, with Lloyds Bank (Household) turning this functionality off. Until price comparison websites embrace shorter question sets, it's difficult to justify investment for brands who rely on aggregator sales.
The overall stats for MTAs see seven out of ten insurers offer the ability to view and/or make changes to policies online. This continues to move forward, and demonstrates the desire to enable customers to undertake policy administration activities online. This was particularly highlighted this year as customers needed to remove unnecessary cover for motor insurance during lockdown periods and insurers scrambled to offer this functionality online so that it would minimise the impact to Operations teams.
Claims has seen some progression too, mostly focussed on FNoL, though some insurers are offering full digital journeys for simple claims such as Accidental Damage to low value articles in the home and some motor insurers carrying out Total Loss claims in minutes rather than days. A further breakdown in Claims capabilities, encompassing Digital Technology and Claims Tracking functionality (shown only at individual Insurer Brand level at the moment) will be factored into overall scoring soon, so expect the overall Claims number to drop in the coming weeks.
Renewal capabilities seem to have taken a step backwards, and it will be interesting to see how this develops in the next 12 months as the FCA's General Insurance Pricing Practices Market Study takes shape early next year.
Customer Interaction across the board has seen a step backwards. This is largely due to our scoring methodology changing here. Voice Assistants and Messaging Apps are now commonly used in every day life but insurers are also starting to embrace these technologies too, and therefore we have added this to our scoring. We'll be publishing the Customer Interaction "rankometer" in the New Year.
Since our last research was published, digital transformation has very much been on the agenda at major insurers, particularly with the events of 2020, and this is evidenced through the changes we have seen in developing the 2020 rankings.