Canadian life insurers need to better nurture customer relationships through improved digital communications and distribution strategies, according to new research.
Ernst & Young (EY) discloses this finding in its report, "Consumer Insurance Survey: Reimagining customer relationships."
"As insurers face challenges in retaining customers, there's work to be done in developing strong mutually beneficial relationships," says EY Partner and Canadian Financial Services Insurance Leader Marc-Andre Giguere.
According to the survey, only 6 in 10 (59 percent) of Canadian consumers trust life insurance companies, the lowest trust rating compared to pharmaceutical companies (61 percent), car manufacturers (64 percent) and banks (81 percent), signaling serious customer relationship issues. The numbers are similar for P&C insurance companies, that have only 56 percent trust, versus pharmaceutical companies (59 percent), car manufacturers (68 percent) and banks (73 percent).
The report indicates that insurance products are "typically out of sight and out of mind" because insurers have few interactions with customers, making "each one a critical opportunity for strengthening customer relationships and building trust." To that end, insurers need to invest more in digital communications initiatives that consumers are receptive to.
