It has been common knowledge for some time that employees are ahead of corporate IT departments in terms of adapting to new technologies. Employees, not IT departments, identified the utility of such innovations as mobile, tablet computing and social media. The IT department, in turn, had to respond to what was essentially a fait accompli as widespread use of new technologies led to reactive solutions in terms of use, compliance, security and other dimensions.
The same phenomenon has been taking place -- on a larger scale -- with consumer adaptation of technologies. We have seen industry after industry scrambling to cope with consumers who demand anytime/anywhere access to information and service. Simultaneously, consumers have made social media a powerful platform for product research and information sharing.
In the insurance industry, we believe this has led to what we call a "looming expectation gap" between what consumers want from their insurers and what they feel they are receiving. In survey research with 7000 respondents in 13 countries, we heard again and again that, while people are generally satisfied with their insurance providers, they expect more in terms of the resolution of customer service issues. These expectations are fueled, in part, by consumers' own knowledge and use of technology. Younger consumers, and those from emerging markets, are more interested in innovations such as mobile service, but they are also more likely to shop around.
For example, more than three-quarters (76 percent) of respondents below 35 years expressed interest in using mobile devices to text insurers to receive updates on claim requests, or to interact with agents and brokers through smart phones equipped with video capabilities, compared to less than half (46 percent) of respondents over 45 years.

In one of my recent posts, I discussed the fact that insurance companies are trying new ways to recruit young professionals. Interestingly, we can also look at how younger consumers are affecting the industry. To summarize other points in this article, research conducted by the authors concluded that younger customers are the least loyal in terms of staying with insurance providers. These customers are more likely to switch insurers due to interests in new services offered by some insurers on mobile devices, including the ability to text insurers and receive information via text, the ability to interact via video-enabled smartphone, access to insurers and information via Web 2.0 applications, availability of insurance applications on iPads and other tablets, and availability of interactive needs analysis on iPads and other tablets. What I found even more interesting about this article's findings is young customers are actually willing to pay a premium to get more products relevant to their needs. 




It will be important to develop innovative, personalized products and services and deliver them across all of the preferred channels.
Although insurers are not yet delivering what customers want in terms of technology and access, they can differentiate themselves and gain market share by leveraging analytics to assess which products and services are working best and which need to be changed to deliver a better customer experience. Insurers who meet customers more than half-way can establish and maintain a significant source of competitive advantage in the years to come.
Besides mobile applications, I wonder exactly how insurers can incorporate more technology into their products in services.