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Leveraging Consumer Insight

in Insurance

Heiko Franken, Christopher Freese, Ian Frost, Jean-Christophe Gard,
Kosuke Kato, Astrid Stange, and Ulrich Stephan
February 2010

adapt its marketing campaigns. rather than just according to income. Their opinion of the industry itself is neutral. The hallmarks of insurance—security and stability—are top of mind for many consumers. but it has burnished the image of institutions that are perceived to be safe or even staid. or senior). They also describe insurance products as intangible and hard to appreciate.” The Insurance Paradox Our study of consumer attitudes found both reassuring and worrisome signals. Understanding consumers—their attitudes toward insurance and how the crisis has changed their view of the industry—is the first step in tapping the full potential of consumer insight. they are satisfied with their own insurer. such as peace of mind. Still. confused. They find product descriptions—in print and even when provided by a salesperson—to be loaded with cryptic terms and almost impossible to understand. and the United States—and was based on a survey of more than 1. In this respect. ◊ Japanese consumers have the most positive attitude toward insurance. young worker. Few are anxious or angry about their specific provider. but only with respect to specific products and the generic benefits they provide. The Boston Consulting Group recently conducted a study of consumer perceptions about the insurance industry and its major brands. The second step is to segment consumers on the basis of their perceptions about insurance. sales techniques. security. In general. while far from immune to the effects of the crisis. Germany. or life stage (such as student. The study. Insurers can also take immediate steps to leverage consumer insight.000 people in each market. Japan. Many. companies should demystify their products and make the most of rare “moments of truth. these consumers see insurance as something they must have—a necessary evil. ◊ U. the insurance industry. however. But translating these priorities into new demand and higher rates of retention requires a deep understanding of consumer behavior. Paradoxically. consumers endorsed several measures that would have a positive impact on their attitude toward an insurance company. The Boston Consulting Group February 2010 . It might even roll out new brands that appeal to a particular niche. done in mid-2009. while others are nearly universal. The vast majority of consumers—between 72 and 88 percent. wealth.Leveraging Consumer Insight in Insurance T he financial crisis has tarnished the image of financial services as a whole. focused on four major markets—France. To this end. most consumers have either a neutral or a negative view of the industry (and its products). In our study. ◊ Most German consumers have a negative view of the insurance industry and are dismayed by its complexity and lack of transparency. depending on the country—are content with their insurer. and wary about life insurance and retirement planning. however. over time. is in a relatively strong position. and product offerings to suit specific groups. A company that has developed a refined understanding of consumers can. The degree to which consumers look askance at the industry varies among the four countries. Some behaviors vary by consumer segment. however. as well as the keys to loyalty. and protection. consumers associate life insurance and retirement products with safety.S. along with in-depth workshops and interviews. Among other things. These measures should enable insurers to pursue a range of actions that will spur growth and enhance retention. This segmentation should then be enriched with insights into purchasing and channel preferences. are anxious.

The percentages are similar in other markets. too. even after the crisis subsides. Market. their experiences with insurers—when renewing coverage. “This has had a strong impact on my financial planning. people are often unwilling to admit that they made a bad decision. Processes run smoothly. On average. (See Exhibit 1.” Consumers have come to view insurers as safer than banks. ◊ Japan has bucked the trend. consumers consider many banks to be safer than insurance companies. The fact that insurance is both mandatory—if not in actual fact. They see them as expensive. This was close to the ten-year average. We asked consumers to estimate the percentage of motor-vehicle insurance premiums that is spent on claims—in other words. The Impact of the Crisis on Consumer Perceptions Insurance products have connotations that carry greater weight since the crisis. Second. in general. is imbued with a new awareness of the value of thrift. or making a claim—tend to go well. the combined ratio (the percentage of gross earned premiums paid out in claims and expenses) in motor-vehicle insurance amounted to about 102 percent in 2008. (See the sidebar “Dealing with Adversity in the U. The actual level of discontent may well be higher than the numbers indicate. In a recent BCG survey of consumer sentiment—which took in views from around the world—70 to 80 percent of respondents said they had intensified their bargain hunting across a range of goods and services.) They place a higher priority on long-term security than on short-term savings. Despite the crisis. but they are not inclined to make a decision based only on price. 20 percent are used for marketing. and the insurer steps in helpfully when the consumer has suffered a loss. the crisis has changed consumer attitudes in ways that dovetail with the core values of insurance.S. and 20 percent are pure profit. and give significant weight to a company’s reputation when making a purchase decision. In Germany. The Boston Consulting Group February 2010 . but many regard the products with some disdain. Most plan to continue searching for deals. ◊ In the United States. then for the sake of financial security— as well as intangible colors their view of the industry. This perception has not changed much—consumers had a fairly positive view of the industry before the crisis as well. however. while 20 percent are spent on customer acquisition and administrative expenses. consumers in the four countries believe that about 40 percent of premiums go toward paying claims. To the extent that consumers are “trading down” in insurance. opaque. and hard to compare because of all the fine print. consumers perceive insurance companies to be safer and more secure than banks. most insurance companies are seen as safer than banks. we expect this behavior to focus mainly on motor-vehicle insurance. This could be a lingering effect of Japan’s “lost decade” of the 1990s.Leveraging Consumer Insight in Insurance 2 ◊ French consumers know that insurance coverage is essential. Consumer behavior. They would rather give their insurer a passing grade than say they made the wrong choice. “I lost a lot of savings due to the downturn. People have become preoccupied with financial security. But unlike consumers in other countries. The gap between perception and reality is staggering. The industry’s image is not helped by widespread misperceptions about the arithmetic of insurance. the French have come to trust both insurance companies and banks more since the crisis. In three of the four countries surveyed. people dislike buying insurance. First and foremost.”) ◊ In Germany. a sentiment that held even during the dark period from November 2008 to March 2009. The insurance paradox is the result of two factors. In other categories. ◊ In France. the amount of money that flows back to policyholders.” one consumer said. people consider insurance companies to be safer than banks. which has become commoditized. for example. but this sentiment may not translate into higher demand. At the same time. when insurance companies had trouble coping with deflation and low interest rates. consumers are interested in shopping around. especially life insurance.

which provide them and their families with a safety net during difficult times. rattled by the downturn.9 Compare financial products Buy annuities in order to be secure in retirement 4. These challenges are part of a perfect storm affecting the conversion process. the selling message is often poorly aligned with the issues that are most important to consumers today. They are more in tune with the core values of these products. consumers1 Definitely no As a result of the crisis.” The insurance paradox is at its most extreme in the United States. 1 The survey of U. anxiety.7 Seek low-price offerings from unknown companies 3. and other changes to the operating model—will win a disproportionately high share of the market and accelerate their recovery from the downturn.S.Leveraging Consumer Insight in Insurance 3 Dealing with Adversity in the U. qualitative interviews.” one consumer said. U.1 U.0 Spend more on life insurance in order to feel more secure Accept high prices in exchange for relying on established companies 3. I already do or plan to: 1 2 3 Definitely yes 4 5 6 7 4.S. June 2009. which could help bolster demand. most of whom have seen their investment returns plummet. have major obstacles to overcome. Exhibit 1. however.066 insurance consumers in the United States. processes. are not buying.3 Switch to life insurance that has lower premiums 4. Many. and they see insurance as helpful and necessary. the conversation is clouded by mistrust and confusion. have become more preoccupied with saving. Market The steep decline in new sales of life insurance in 2009 suggests that these products. the sale is harder to make because many consumers have less money to spend.S. As a result. Others. And even when they do. Companies that find ways to tap into this potential demand—not just through better marketing but through redesigned products. the crisis has improved attitudes toward certain insurance products. Ultimately. these consumers associate buying insurance with confusion.3 4.S. U.3 Switch to life or annuity products that are less risky 4. consumers are more interested in shopping around for life and annuity products But price is not always the deciding factor Neutral 4. The Boston Consulting Group February 2010 . Some have lost income. Stated simply.4 Borrow against the cash value of life insurance 3. Consumers want protection more than ever. All too often. Consumers Are Shopping Around—but Not at the Expense of Safety and Security Impact of the crisis on U. On a positive note. and fear.0 Sources: BCG survey of 1. which are considered indispensable. insurers is the rapid deterioration of consumers’ confidence in—and opinion of—financial institutions in general. advisors are reluctant to reach out to clients.2 Cancel and cash out life insurance 3. but they hate the process of selecting products and generally do not trust the people or the companies selling them. “Because of the crisis. with both positive and negative attitudes in stark relief.S. consumers continue to view life insurance and retirement planning as helpful and protective.8 Seek life products that can be used as collateral 3.S. consumers recognize the need for life insurance and retirement planning. consumers covered only life and annuity products.S. Making matters worse. they put off insurance purchases.S. “I am much more aware of what I need to do in terms of financial security. They find insurance-speak incomprehensible and are seldom confident of their ability to make the right choice. At the front end. Even more troubling for U. U.

These factors create a powerful brand advantage over publicly listed insurers. however. and trustworthiness. and strong relationships. we asked consumers to describe the qualities of the perfect insurer. We looked closely at the results for three qualities: expert knowledge. Mutual insurance The Boston Consulting Group companies in these two countries have a tremendous opportunity to increase their market share by promoting the inherent strengths of the model. which suggests that French consumers have a good understanding of the mutual concept. These companies have an unmistakable need. and sympathy. Germany. such as approachability. we asked consumers in all four countries to rank the main brands across a range of qualities. ◊ In Germany. The results in France and Germany were similar: consumers associate the perfect insurer with serenity. The fourth group comprised middle-of-the-pack companies that blend together in consumers’ minds.”) ◊ In Japan. February 2010 . Finally.Leveraging Consumer Insight in Insurance 4 Attitudes Toward Specific Companies In France. only a handful of companies managed to stand out. In both countries. In Japan. ◊ Insurance companies fell into five groups in the United States. costs. They are seen as partners. To understand how insurance companies might be able to differentiate themselves. the institutions receiving the three highest marks for sympathy were all mutuals. In France. which provide both expert knowledge and value for money. Learning from Mutuals Mutual insurance companies have a better image than other insurance companies. mutuals are less well understood. Companies in a second cluster have outstanding value for money and also rank high in sympathy. Participants in our interviews and workshops frequently cited the first two qualities as critical. there was a catchall cluster that included brands lacking in any defining characteristics. which typically spell out their claims. Nonmutuals cannot mimic all the advantages of mutuals. Outside of France. Only 2 percent thought it was not a good idea at all. Consumers also see mutuals as more sympathetic than other insurance companies. and profits. and are considered more trustworthy than publicly listed insurance companies and banks. only one-third of our survey participants knew about mutuals. Most of the top-rated brands were mutuals. ◊ The differentiation among brands was a little stronger in France. for example. mainly because of their expert knowledge and value for money. First were all-around champions. brands were more sharply defined by expert knowledge and value for money. their narrow focus on consumer segments or regions. not just providers. These were followed by experts. In Japan. Such reporting is common practice among mutuals. and their reputation for honesty and trustworthiness. to set themselves apart by repositioning their brands. Our workshops revealed five characteristics that underpin the image of mutual insurers: their longevity. their practice of returning profits to customers (who are the shareholders). Finally. usually associated with specific products. and less than 25 percent said they were knowledgeable enough to explain the concept. value for money. Next were price leaders. which provide good value for money. (See the sidebar “Learning from Mutuals. There was a similar lack of familiarity in Germany. as well as a clear opportunity. they associate the perfect insurer with peace of mind and full coverage for the entire family. particularly in France. but they can recreate the kind of transparency that consumers value. fairness and honesty. There were about 20 large companies that consumers think of as similar or nondescript. trust. The middle ground was crowded. and Japan. We asked consumers In Germany and France if they would appreciate having annual updates about how their premiums are used. confidence. their local presence. around 65 percent of respondents thought this was an excellent or a good idea. harmony. There was one cluster of expensive experts—mainly traditional Japanese companies—that have outstanding knowledge but lack value for money.

which we used in Japan. a marketing message or product offering. February 2010 . proved useful when categorizing consumers in all four countries. To arrive at a more accurate. It facilitates market and opinion research. (The capable/sovereign versus lost and confused dimension. see the sidebar “BCG’s Study Methodology. These two dimensions go a long way toward describing how people approach the insurance sector. most were hit hard by the crisis. Does he or she have the motivation and capabilities needed to be actively involved in the process of assessing and buying insurance products? ◊ Peace of Mind Versus Necessary Evil.”) We then used a quantitative survey to ensure that these criteria would result in segments that are internally homogeneous—with consumers in each group sharing key characteristics—and externally heterogeneous. This dimension captures consumer attitudes toward the industry as well as toward specific brands or products. BCG uses this method primarily to understand issues relating to brand management and strategy. serve. which provided additional insights into the impact of the crisis on consumer attitudes. This dimension describes a consumer’s behavior when dealing with insurance issues.) Two dimensions. there is room for insurers to make their brands more distinct. used in BCG’s Study Methodology BCG’s Customer Minds and Branding in Insurance study was conducted in the summer of 2009. the segmentation of target groups. Consumers’ perception of insurance companies is blurred by the large number of brands that lack definition. Across all markets. for example—are inextricably linked to money. most insurers segment the consumer base according to wealth or income. while caretaking partner versus untrustworthy cheater is a more extreme version of peace of mind versus necessary evil. actionable segmentation—one that can steer the development of marketing campaigns and product portfolios—we developed a process for categorizing consumers according to their attitudes and motivations. say. ◊ Active Versus Passive.) In Germany. It also reflects consumers’ relationships with insurers and their perception of the benefits of insurance. and The Boston Consulting Group the development of market strategy.000 respondents in each country. The research combined several mind-discovery workshops and an online survey with more than 1. in particular. Such segments would be distinct enough to provide cues for altering. these preferences are more closely correlated with underlying attitudes and motivations. (See Exhibit 2. The criteria for this behavioral segmentation were uncovered during our mind-discovery workshops. we added a third dimension—relationship-seeking versus independent—to capture other important variables in behavior. nonmutuals and middle-of-the pack insurers—which are too general to make a lasting (or accurate) impression on a company’s target customers. The study also drew on BCG’s Consumer Sentiment Barometer. In fact. Most brands fall into broad categories—for example. In fact. Our method allows consumers to be segmented along a small number of dimensions. But such a value-based segmentation assumes that consumer preferences—for certain products or channels. (The dimension capable versus not capable. they are so comprehensive that by themselves they were enough to segment consumers in France and Japan. Mind discovery is a proprietary method for conducting consumer and expert workshops. and retain customers. (For more on our approach. is very similar to active versus passive.Leveraging Consumer Insight in Insurance 5 there was a group of companies defined mainly by negative perceptions. Developing a More Refined Consumer Segmentation To determine how they can best acquire.

) To segment consumers in the United States. They will not compare prices. our segmentation covered both life and nonlife products. Germany. France (n=1. The latter group includes people who know they need better coverage and feel anxious as a result. as well as on brand and channel management. Similar segments exist in other countries. these included optimizers. the behavioral segmentation yielded distinct groups. In the other countries. Needless to say.Leveraging Consumer Insight in Insurance 6 Exhibit 2. they sleep well at night. as personal relationships are extremely important to them.004). Relationship seekers have a positive attitude toward insurance—they value the peace of mind it provides—but they are a more captive audience. and relationship seekers. The former category includes people who take comfort in knowing that their personal insurance coverage is sufficient. our segmentation was based on research into consumer attitudes toward life and annuity products. who represent about 10 percent. nor will they consider using any channel other than the company’s sales agent. Some have successfully adapted their marketing strategies to suit specific segments. for example. Consumers Can Be Segmented on the Basis of Their Attitudes and Behaviors Primary dimensions for segmenting insurance consumers France Active versus passive Peace of mind versus necessary evil Japan Capable versus not capable Caretaking partner versus untrustworthy cheater Germany Involved versus indifferent Capable/sovereign versus lost and confused Relationship seeking versus independent United States High versus low importance of relationship Active versus not seeking information Feeling well-insured versus not well-insured Peace of mind versus necessary evil Source: Quantitative research in Germany (n=1. who represent about 8 percent of the population. In France. T B C G F  . and the United States (n=1.) In each country. The true test of this approach—and a measure of its potential value to insurers—came when we started to assess the bearing of each segment on customer acquisition and retention strategies. we added a fourth dimension—feeling well-insured versus not well-insured. May through July 2009. (In the United States. They compare prices and are very interested in direct channels.001). Optimizers see insurance as a necessary evil but are still engaged.004). This kind of alignment is already creating value for insurers. insurers must have separate marketing strategies for segments that are substantially different from one another. sometimes varying prices or even developing different brands. our segmentation focused on life and annuity products. it covered both life and nonlife products. Note: In the United States.066). These companies tend to have better premium growth than companies that make less of an effort to target specific segments. but they will not address the problem without being pushed. In the other countries. involved versus indifferent describes people who derive peace of mind from insurance and are therefore involved in the process of buying it. versus those who see insurance as a necessary evil and are therefore indifferent. Japan (n=1. is analogous to active versus passive.

Among U.001). or it arises only when someone close to them needs insurance.) It takes time. The Boston Consulting Group February 2010 . and the decision is easily swayed by a small number of information sources. Neutral sources. The Purchasing Process Consumers say that their decision-making process when buying insurance is rational and disciplined. but most vary according to the characteristics of each group. and arrive at a product that delivers the best value. lower prices are the main reason for switching insurance providers. let alone comparing offerings. In Japan. Even passive consumers are starting make a foray into the market using the Internet. therefore. however. Price Is the Most Common Reason for Switching Reason for leaving an insurer (%) Germany Lower price at new company Previous company did not care about my needs Former product didn’t suit my needs anymore 43 Not tested 21 21 22 13 2 Japan 63 22 Bad reimbursement Recommendation by family or friends Previous company was not easy to contact Previous company had a bad reputation France 62 13 12 15 9 14 20 10 21 8 Not tested 3 12 Previous company had no aer-sales service Previous company had poor aer-sales service 8 Source: Quantitative research in Germany (n=1. and Japan (n=1. In Germany and France. before a customer will start to think about switching. Direct channels do not yet play a major role in any of the four markets. The lone exception is the segment of active consumers. Exhibit 3. France (n=1. insurance agents are the most important source of information. Note: Respondents were permitted to cite more than one reason. For many consumers. our study looked at how people negotiate the purchasing process—an experience that turns out to be more improvisational than scientific—along with the channels they prefer and the factors that influence loyalty.004). The reality. They genuinely want to compare products and prices. who are both interested in and capable of understanding the complexities of different products. But each country has some consumer segments—typically comprising active consumers—that use the Internet to research and buy insurance. recommendations from friends and family are the most important influence.004). (See Exhibit 3. Some of our insights are applicable to all segments. except for motor-vehicle insurance and some noncomplex risk life products.Leveraging Consumer Insight in Insurance 7 Understanding the Keys to Customer Acquisition and Retention In addition to examining consumer attitudes toward the insurance sector. consumers tend to get their information from advertising—on both TV and the Internet—and from insurance agents. the process tends to be spontaneous rather than planned. Customer Retention Across all segments. For most companies. is far from the ideal.S. Channels Distribution structures vary widely among the four countries. but the structures themselves change slowly. Demand is sparked by conversations with friends and family. May through July 2009. consumers. Searches are narrow. however. such as price comparison Web sites and specialized media. an easy-to-use online site is essential. are a second-order priority for most consumers. This analysis was not part of the quantitative research conducted in the United States. draw on objective sources to make an informed choice.

May through July 2009. A Call to Action Connecting with the consumer requires detective work. but companies may be able to develop more granular segments based on other factors. France (n=1.”) For many companies. and Japan (n=1.) In Japan.001). In addition. The Boston Consulting Group February 2010 . To improve customer acquisition and retention. (See Exhibit 4. and even roll out new brands that appeal to a particular niche. (See the sidebar “Hearing the Consumer’s Voice. particularly if they are relationship oriented. But rather than focusing on what makes customers leave. sympathetic agents and customer inertia—the convenience of staying—are the most common reasons why people stay with an insurer. But to put consumer insight into action. The basic segmentation dimensions will mirror those defined for the four markets above. the process of leveraging consumer insight will entail substantial transformation. Using such a refined segmentation. the burden of switching—the time spent searching for information and filling out forms—outweighs the benefit of a lower price. good service and an impeccable reputation will keep customers on board. Unfortunately. companies should begin by segmenting their existing and target customers according to their attitudes and behaviors. Note: Respondents were permitted to cite more than one reason.Leveraging Consumer Insight in Insurance 8 Consumers in passive segments are much more loyal to their insurance providers.004). A marketing campaign targeting people who are. these consumers are not inclined to research prices or other providers. It requires not only careful study but also clever adjustments to the business. 30 to 40 years old and in a certain income bracket will be blunter than one geared to people who share specific traits. say. and training. product development. Only a few consumers said they had switched insurers because of poor service or unfulfilled needs. many do not. companies can promote certain products to specific segments.004). develop new guidelines for the sales force that clarify which approaches work best with certain consumers. For them. The Drivers of Loyalty Vary by Country Reason for staying with an insurer (%) Germany France Good service 53 Good reputation 52 Good past experience with a claim 45 27 44 Discount for existing clients 32 22 44 33 19 11 14 37 35 Convenience of staying 16 35 42 Lowest price Agent convinced me 50 47 Sympathetic agent Japan 30 46 10 31 20 Source: Quantitative research in Germany (n=1. How do you keep them from entertaining competing offers or actively shopping around? In France and Germany. Exhibit 4. we were more interested in what makes them stay. This analysis was not part of the quantitative research conducted in the United States. Segments based solely on age and income only scratch the surface of consumer insight. a company must have an effective market-research function. The changes set in motion by segmentation should—over time—affect marketing campaigns.

On average. The study included a survey of more than 800 executives and nearly 200 interviews. Second. This involves. In our study. In our study. and less than 40 percent of survey participants said that market research is used at their companies for decisions on pricing. many consumers said their insurer had called to say that their rates were being reduced. companies must focus on two factors. Other companies find ways to play a visible role on a regular basis. or distribution channels. To capture the full potential of consumer insight. capability. In France. ◊ Make insurance more tangible. Some. At the opposite end of the spectrum—stage four—it is a source of competitive advantage.” only 34 percent of line managers said that they do ◊ Fewer than half (41 percent) of insight staff thought the business leaders in their organization could pass a pop quiz on important facts about consumers If companies are not hearing the consumer’s voice. getting senior managers involved and expanding the scope of the function. companies need to improve the performance of the consumer insight function by upgrading capabilities and talent and focusing the team on the right activities and deliverables. Many insurance products remain dormant until customers need them— that is partly why consumers describe insurance as intangible (and hard to appreciate). for example. The claims process is the definitive moment of truth—the time when the insurer does something that has a direct and substantial impact on the customer’s well-being. The study identified four stages of a company’s consumer-insight Generating and exploiting consumer insight— knowledge that brings a company closer to the hearts and minds of its targeted consumers—is a capability that can yield immense impact. These customers felt they were being treated fairly. Insurers have few opportunities to leave a lasting. and they can do so by describing some of the outstanding efforts they have made in response to claims. Insurers need to make their presence felt. There are few business decisions that could not benefit from a deeper understanding of consumer behavior. it may be because they follow a hemmed-in approach to market research. State Farm Insurance has partnerships with several state highways to provide safety patrols. In the United States. An insurer can make a strong impression by being there when the customer needs support—not just over the phone but in person. along with the number to call to request free roadside assistance. prioritization of brands and markets. only 20 to 35 percent of a company’s market-research budget is devoted to strategic studies. which helped build loyalty. In addition. promotional activities. and resource allocation. First. At stage one. ◊ When asked whether consumer insight teams “consistently answer the question. This was one of the key findings of a recent BCG report. Frustrations were evident among both the recipients of market research—the line managers—and those who generate the output. But insurers can also take immediate steps to leverage consumer insight. only 35 percent of the executives surveyed described their consumer-insight capabilities as best in class. walled off from critical business decisions. they need to improve the engagement model. ◊ Make the most of rare moments of truth. which benchmarked the consumer insight capabilities of 40 companies across a range of industries. among other things. While all companies see consumer insight as a major contributor to financial performance and growth. it is essentially an isolated order-taking function. consumers endorsed several measures that would have a positive impact on their attitude toward an insurance company. with a mandate that spans the organization and findings that influence cross-firm decisions such as acquisitions. positive impression on the consumer. So what? about the data they provide. are able to mobilize substantial resources in response to natural disasters. insurers should try to manufacture moments of truth that are separate from claims. The patrol vehicles are painted in the company’s colors and reflective signs along the highway bear the company’s name. The Consumer’s Voice—Can Your Company Hear It? (November 2009).Leveraging Consumer Insight in Insurance 9 Hearing the Consumer’s Voice Most companies recognize the importance of the market research—or consumer insight—function but they struggle to unlock its value. The Boston Consulting Group February 2010 . almost 90 percent of companies were still at stage one or two.

insurance companies have an opportunity in both the near and the long terms to leverage a better understanding of consumers. The Boston Consulting Group February 2010 . That can help minimize the risk of alienating customers. spelling out exactly what is and is not covered. They should explain terms and conditions as clearly as possible. In short. particularly if the company makes it clear that premiums are used largely to pay claims. they should say why. Insurers can build trust with consumers by demystifying their products.Leveraging Consumer Insight in Insurance 10 ◊ Increase transparency. And when premiums rise.

please visit www. You may contact him by e-mail at franken. build more capable organizations. Jean-Christophe Gard is a partner and managing director in the firm’s Paris office.com. and transform their businesses.Leveraging Consumer Insight in Insurance 11 About the Authors Heiko Franken is a partner and managing director in the Hamburg office of The Boston Consulting Group.kosuke@bcg.heiko@bcg. Inc. Emmanuel Huet. Finn Age Hänsel.com. © The Boston Consulting Group. You may contact him by e-mail at freese. Ian Frost is a senior partner and managing director in BCG’s Chicago office. Kate Manfred.christopher@bcg.jean-christophe@bcg. You may contact him by e-mail at stephan. Founded in 1963.astrid@bcg. and production.com. You may contact him by e-mail at kato.com. Tim Bercio. The authors would like to thank Aliaa Ali. We partner with clients in all sectors and regions to identify their highest-value opportunities. You may contact him by e-mail at gard. They would also like to thank Dan Coyne for his help in the writing of the report and Kim Friedman and Gina Goldstein for contributions to its editing.ian@bcg. Liselotte Maichel. For more information. Kilian Berz. address their most critical challenges. You may contact him by e-mail at frost.com. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. Gaby Barrios. Christopher Freese is a senior partner and managing director in the firm’s New York office. Ulrich Stephan is a principal in BCG’s Munich office. and Felix Waldeier for their support and input. All rights reserved. BCG is a private company with 68 offices in 39 countries.com. 2/10 The Boston Consulting Group February 2010 . Diana Diedler.com. Astrid Stange is a partner and managing director in the firm’s Cologne office.ulrich@bcg. 2010. You may contact her by e-mail at stange. Kosuke Kato is a partner and managing director in BCG’s Tokyo office.com.bcg. design. and secure lasting results. The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. This ensures that our clients achieve sustainable competitive advantage.