Customer service remains an integral part of an insurer’s business despite the industry undergoing a digital transformation, Allianz Chief GM Broker & Agency David Hosking says.

“Because people are researching online but still purchasing offline, you still need to have a good service proposition to support that,” he told insuranceNEWS.com.au.

“We are aware, with the amount of information readily available, there is still not going to be a substitute for face-to-face service.”

Mr Hosking told last week’s Northern Territory Insurance Conference in Darwin that Allianz places a high value on outstanding customer service. This brings retention, cross-selling and upselling, and new business and referrals.

The insurer has introduced a program designed to raise service levels, which it says is already paying dividends in tough market conditions.

Mr Hosking’s presentation showed the commercial broker division enjoyed an 83.2% retention rate this year, up from 79.6% in 2014.

New business grew to $135 million from $123 million last year.

“What we believe is that if you can have excellent customer service consistently, your customers will stay longer… and that will improve your retention,” he told insuranceNEWS.com.au.

“Your existing customers will want to buy more from you and, through word of mouth, you just end up with more new customers.”