Social media and mobile platforms are critical tools for insurers to improve customer engagement and fight off competition from new entrants, according to a global survey of insurance customer attitudes.

While Australian insurers ranked second and third globally for customer experience and customer satisfaction, more than 70% of their customers will consider moving to another insurer.

The authors of the 2012 World Insurance Survey, consultant group Capgemini and global financial association Efma, say Australian customers might be satisfied with their insurer, but will nevertheless switch insurers for a better deal.

Half of the 16,500 customers surveyed globally for the report say price is a factor when leaving an insurer, although 41% say product features are also important.

Capgemini Australia Financial Services VP Mark Jarvis says the problem for insurers is the lack of “touch points” with customers.

“Customer satisfaction with local insurers has always been pretty high, but that doesn’t always translate into loyalty,” he told insuranceNEWS.com.au.

“Typically you take out a premium which you pay annually and if necessary you make a claim, but that’s about it. But if you look at a bank, they have a lot more touch points – you need to make contact with your bank a lot more often.

“Under those circumstances, it’s very hard for insurers to drive loyalty and enthusiasm, particularly when insurance is viewed as a commodity.

“This is where the use of social media is a great way to provide value for the customer.”

Mr Jarvis says Australian insurers lag behind their international counterparts on social media platforms, although pockets of innovation are emerging.

He cites Suncorp speciality car insurer Shannons as an insurer using social media effectively. Shannons launched the “Shannons Club” in January as an online social meeting space for car enthusiasts to share information, photos and videos about their vehicles.

The insurer has also uploaded 137 videos on YouTube, receiving nearly 290,000 views.

“If you look at some organisations using social media effectively, it’s not necessarily about driving content or touch points that are directly applicable to the product,” Mr Jarvis said.

“Social media is better used as a marketing tool not for product marketing but for brand awareness.”

“I think the report really does focus on the need to improve brand loyalty,” he said.

“We’ve moved away from purely getting costs down and making things run smoother, a lot of low hanging fruit has been removed.

“The interesting thing will be looking at some of the emerging competition to traditional insurers.

“The emergence of non-insurer brands into the market will drive a sense of urgency in improving brand loyalty as well.”