Page 163 - India Insurance Report 2023- BIMTECH

India Insurance Report - Series II 151

Customer Centricity in Insurance

- Tapan Singhel
17 MD & CEO of Bajaj Allianz General Insurance

When was the last time you had a fantastic customer experience? The kind of experience that left
you feeling so satisfied and valued that you couldn’t wait to tell your friends and family about it?
According to a recent survey, only 1 out of every 26 customers will actually do that. That means that for
every person who raves about your company, 25 others are silently dissatisfied. If you do not already
understand the power of customer centricity, the following few statements will help you appreciate the
full extent of it. Companies with a customer-centric approach are 60% more profitable than those that
aren’t. That’s right, 60%! But that’s not all. According to a study by Deloitte, customer-centric companies
are also 2.1 times more likely to be considered “excellent” by their customers. So, what is customer
centricity, and why is it such a game-changer in today’s business world? Let’s dive in and find out.

1. What is Customer Centricity?

Customer centricity refers to the business approach that focuses on providing an exceptional
experience to the customers. It involves understanding the customer’s needs, preferences, and expectations
and aligning the business processes and strategies accordingly. A customer-centric company prioritises
customer satisfaction and loyalty over short-term profits.

To achieve customer centricity, companies need to gather and analyse customer data and feedback,
personalise their marketing messages, and tailor their products or services to meet the customer’s needs.
They need to invest in customer service and support to ensure their customers have a positive experience
throughout their journey with the brand. Customer centricity is crucial for long-term success as it
creates loyal customers who will likely promote the brand to others. It also helps companies to stay
competitive by providing a differentiated offering that meets the customers’ needs better than their
competitors. Ultimately, customer-centricity is about creating a mutually beneficial relationship between
the company and its customers.

2. Customer Centricity in Insurance

The Indian insurance industry is undergoing a paradigm shift, largely driven by a variety of factors
that are fundamentally changing the way that insurers deliver their products and services. Firstly,
technology has played a substantial role in altering the way that insurers operate within the industry.
With the widespread proliferation of digital channels, customers now expect instant access to information
about their policies and claims, as well as easy-to-use, 24-hour self-service options that enable them to