The report describes this behaviour as the ‘millennial mindset’. Consumers are turning to non-traditional players such as BigTechs and product manufacturers for innovative, personalised offerings with enhanced customer experience and are increasingly relying on digital channels in the face of the Covid-19 pandemic.

For insurers, this means they should be re-evaluating their portfolios and harness partnerships to become ‘inventive insurers’, the report states.

The report groups today’s insurance customers into four categories – pioneer, inquisitive, experimental, and follower – based on their social behavior and shopping preferences. The report recommends that in order to remain relevant to customers, insurers need to better connect with their policyholders by providing them with hyper-personalised and experience-led engagement. Simply put, insurers need to offer the right products at the right time and via the right channels.

Anirban Bose, CEO of Capgemini’s Financial Services Strategic Business Uni, said: “Today’s competitive and fast-changing environment has been inexorably altered by the Covid-19 pandemic. Cross-generational digital adoption and the unprecedented impact of the pandemic are compelling reasons why established insurers need to transform their operating models.

“The end game will be to become the insurer that provides hyper-personalised experiences to be able to compete head on with BigTechs. There has to be a reason for consumers to choose to stay with insurers and hyper-personalisation can be that reason.”