Insurance companies and advisors must work together to enhance customer service in order to attract clients in the increasingly competitive market for insurance, according to Louis Régimbal, a partner in KPMG LLP’s financial services practice.

Speaking at KPMG’s annual Insurance Issues Conference in Toronto on Wednesday, Régimbal said that it’s become increasingly difficult for insurers to differentiate themselves solely on the basis of their product offerings, given the commoditization of insurance products.

“It’s a very crowded universe, a very noisy marketplace,” said Régimbal, who heads the firm’s insurance practice in Quebec. “How do you get noticed?”

For insurers to set themselves apart, he said they must compete on the basis of exceptional service.

“Customer service is a new battleground in the space of insurance,” he said. “There is a need to differentiate oneself at this point, and we think the customer experience is a fantastic way to achieve that.”

Currently, most insurers are too heavily focused on selling products, Régimbal said. He pointed to research showing that only 35-47% of customers in Canada are completely satisfied with their insurance provider, which, he suggests, indicates that service is lacking.

“Those numbers are low by most industry standards. In a lot of other industries, those numbers are a lot higher,” he said. “There’s a challenge for the industry today to improve its overall satisfaction levels.”

To improve service, the industry should spend more time getting to know clients, understanding their needs, and designing solutions that are tailored to meet those needs, Régimbal said. A survey conducted by KPMG shows that clients are increasingly demanding “made-to-measure” products and solutions that fit their specific needs.

Clients also want their insurance provider to be easily accessible, to keep pace with changing times, and to offer products with speed and simplicity, according to KPMG’s research.

Although financial advisors are typically the ones dealing with clients face-to-face, the insurance companies themselves should also be playing a role in the customer service process, Régimbal said. He urges insurers to spend more time interacting directly with clients, establishing a triangular relationship between the insurer, the advisor and the client.

“In the insurance industry, the intermediary’s role is very important,” he said. “But as we go forward, there’s no question that we have to try and collapse that into a triangle, and make sure it’s a three-party discussion.”