Resellers trying to peddle insurance along with hardware packages might find themselves in hot water because the insurance industry has a problem identifying its customers.
Analyst outfit Ovum said that insurance companies are badly informed when it comes to working out who their customers are as the whole industry is getting turned on its head by new technology.
New research from the analysts highlights how the insurance sector is trying to adapt to new models of commerce and some are falling behind.
An Ovum spokesperson said that insurance is moving from a model where one-to-many messaging works, particularly in mass media, to a framework where consumers are gaining more power in the business transaction.
This means that insurance companies are designing packages which do not meet the needs of consumers and if they are being sold as part of a reseller, or warranty package, then it will the IT company that gets hit by the backlash.
Ovum believes that until insurers understand who the customer is, they will be unable to shape, deliver, and strengthen the experience each customer expects. It thinks that insurers, and those who are peddling it, must ensure that marketing is tailored to each individual customer as closely as possible.
Barry Rabkin, principal analyst, Insurance Technology warned that the insurance industry was headed towards a competitive myopia.
He said that customer experiences were becoming the basis of competition in the insurance industry and companies need to encompass customer needs, expectations, and satisfaction into their customer experience management (CEM) strategy.
Bad experiences were also more likely to be communicated thanks to the spread of mobile technology and users who are more informed and interconnected people who are seeking advice from each other.
If a reseller does not closely monitor their insurance packages to make sure they are what their customers think they are getting, it could be their brand that suffers. Customers are more likely to blame the company they bought the package from, before they moan about the insurance.
Resellers have to offer more personalised insurance packages rather than hoping that one size will fit all.
Insurers and the companies that repackage their products must quickly weave in the importance of customer experience into the company strategy at each touch point in order to succeed or fail to meet their expectations, Rabkin said.