Customer-centricity lies at the heart of innovation and also at the heart of insurers’ very survival, according to a KPMG report on New Zealand’s insurance industry.

The professional services giant’s General Insurance Update 2015 for New Zealand says the most successful disruptors are gaining headway by putting customers first.

“The object of innovation should be to drive growth by delighting customers – either through improved efficiency, more customer-centric products and services, or through new channels and approaches,” the report says.

It cites Spanish-based insurer Mapfre, which pioneered an insurance-based customer service model by launching products like pet insurance covering both animal health and owners’ civil liabilities.

Steven Mendel, the CEO of UK financial services startup Bought by Many, is quoted in the report saying that customers “no longer want to go to meet with brokers and they no longer want generic products. What they want is a tailored experience and product offerings that reflect a deep understanding of their needs and risks.”

New British player Beagle St has already captured 8% of the UK life insurance market in just three years due to its customer-centric approach, the report said.

Beagle St’s CEO Matthew Gledhill says his company became so successful so quickly by focusing on the customer and delivering what customers want – simplicity, accessibility and value.

“That’s why our products can be bought within 10 minutes, usually at prices 30% lower than traditional players, and with a basket of value-added services included free of charge.”

KPMG’s global head of retail Mark Larson says New Zealand insurers need to take an “omni-channel approach” to provide individual customers with a seamless experience across multiple “touch points” – the broker, the web portal, the customer service channels and the claims hotline.

Examples of New Zealand insurers who have enhanced their digital offerings are AA Insurance, AMI and State who now provide quotes and accept initial claims notifications online and allow customer’s access anywhere, any time.