With the markets looking up, recession receding, insurance industry is no exception and is poised for growth. However, the industry is facing a new consumer- one being careful, more mindful of what and where to spend - an indelible mark left by the brutal down turn and recession.
Reason? The great downturn of 2007-09 has impacted people from all strata of the society - the well heeled, middle class and the poor - alike, and the dent has been deeper than any in the past with capital losses ranging from 70% to 90 % in many cases. Though the recent market recovery has brought back some of the value, the scars are still raw- with the average investor still keeping away from the market.
There is a major change in the consumer buying behavior at all levels - moving away from the indulging type to the need focused, necessity driven model. From a rapid spend consumerist economy, we are moving into the more careful, thoughtful set of consumers who will look for value over class and jazz for every penny they spend.
Major retailers like Wall mart are focusing on furthering quality, enhanced service and need fulfillment than promoting indulgence. Financial Services firms are vying one another to cut down the fee. Many carriers have started to relook at their product portfolio trimming the frills and furs and exploring products that fulfill the basic needs for protection and savings. Exotic products with higher fees and charges are losing the glamour. Simple products with superior service quality are the need of the hour to retain the customer and grow.
Better customer segmentation, analytics and intelligence are critical to position the right proudct and grow in this market!
