With COVID-19 occupying much of our thoughts this past year, we decided to dedicate much of the World Insurance Report 2021, our 14th edition, to the value-chain link most conspicuously affected by pandemic conditions – distribution. Prolonged lockdowns and social distancing have forced insurers to ramp up the efficiency of both direct (human) and digital distribution channels while delivering more personalized service. Our report offers suggestions and future-proofing engagement solutions based on customer and executive surveys, case studies, and research and analysis.

What did we learn as we compiled our 2021 report? All engagement channels offer unique and critical benefits. And to boost customer Convenience, Advice, and Reach – what we call the CARE equation − insurers must innovate offerings, business models, and capabilities to communicate efficiently.

More than 60% of insurers said COVID-19 was affecting their acquisition efforts, and around 40% said customer retention was similarly shaken, according to a September 2020 poll. As a result, many insurers are now considering technology solutions to hedge against further disruption by enriching their engagement channels, creating WOW-factor impact, and delivering stellar customer CARE.

As we mentioned last year, virtual engagement had gained popularity among all insurance customer demographics, well before the pandemic. And now, our 2021 research finds that more than 80% of customer interaction with insurance firms is digital. However, less than a third of insurers believe digital channels are effective sales closers because, unlike agents and brokers, they can’t provide policyholders with truly individualized advice.