Incumbent Insurers Are Falling Short.

• Position: PROPERTY & CASUALTY

The most-important elements for today's property and casualty (P&C) and life insurance customers are functional ones, such as those related to quality of products and services and ease of doing business. Yet, most incumbent insurers are not delivering on these fundamental preferences, let alone higher order traits, maintains a report by management consulting firm Bain & Company, Boston, Mass.

A mere 20% of millennials in the U.S. give their P&C providers high scores for the key elements that matter most to them. "Insurance customers don't have complicated needs. They want to be able to choose from a good selection of policies at reasonable prices. They want clear, transparent information, and they want smooth, hassle-free interactions. They expect their insurers to help alleviate their anxiety, not add to it," says report coauthor Darci Darnell, global head of Bain's Customer Strategy & Marketing practice.

As a result, the industry increasingly is vulnerable to digital innovators that sell directly to consumers and bypass established companies by creating more value for their customers. Survey findings reveal that consumers--especially digitally active millennials--are very...