Majesco Research Indicates UK Insurance Market Failing to Deliver on Customer Expectations
Staff Writer | July 14, 2015
Majesco announces the results of its UK insurance market research into the quality of the customer experience. Independent market research commissioned by Majesco, and carried out by Redshift Research, reveals one in every three customers feels insurers are failing on minimum level service expectations.
Even the highest customer satisfaction score in the insurance industry of 69 percent, reached by motor insurance providers, compares unfavorably with world class companies such as Amazon, which scores 86.7 percent. By comparison, rail travelers report an overall satisfaction figure of 83 percent.
Other key findings include:
- Over 70 percent of the market indicates they want a ‘family’ product, combining motor, home, travel and pet in a single insurance policy. Nearly 42 percent would buy a family product tomorrow, while 30 percent were unsure but did not rule out the option—highlighting a significant majority (72 percent) of the market expects access to a product that is not available today.
- While insurance remains a price sensitive sector in the UK, the research notes that high value customers in particular are not buying on price. In lower income categories, price is most valued by 80 percent of people but in higher income categories the importance of price falls to 60 to 75 percent while the importance attached to quality of service shows a reverse trend.
- Most customers would prefer to manage their policy themselves, via an online website (57 percent) or using a secure online portal (49 percent).
- Over 60 percent of respondents say their motor or home and contents insurers only contact them once a year, probably on renewal.
- Life, pensions and ISA providers were reported to be more communicative with 47 percent of respondents indicating their insurers communicate with them once a year, whilst 26 p0ercent received communication two or three times a year.
The research further highlighted that insurers should focus on delivering good, consistent service rather than focus on ‘free gifts’ or trying to be the cheapest. A third of customers simply wanted to improve the time it took to answer calls, while 29 percent of life, pensions and ISA customers thought providers could improve service levels by offering 24/7 access to a secure web portal.
Furthermore, the research revealed that customers felt insurers of all types should communicate more effectively by making better use of the customers’ preferred channels of communication with a majority preferring contact by email, for all types of insurance. While 55 percent of customers of life, pensions and ISA providers are mainly contacted by post, 62 percent would prefer to be contacted by email—and only 36 percent want to be contacted by post
A key conclusion that may be drawn from the research findings is there is significant gap between customer expectations and what insurers provide today, indicating insurers must make changes that will enable them to stand out from the crowd by delivering exceptional service. There is real opportunity to alert customers buying on price to the service differential that could mean an easier claims process or time-saving self-management of documents and renewals. A new entrant to the market – someone who listens to what customers want and delivers on that – potentially stands to disrupt the entire insurance sector very quickly.
“The 2015 Majesco research report is a wakeup call to an industry that has become hidebound by traditional ways of working and still lacks sufficient focus on the customer experience,” says Vidyesh Khanolkar, vice president of Majesco Limited in the UK. “The report suggests that the insurance industry is not listening hard enough to what customers are clearly saying that they want. Insurers need to make substantive improvements in customer service, make it easier for customers to access documents and customer support. Bring new products to market and improve the ease with which administrative tasks are done online. Addressing customer needs is no longer just good business practice but could prove to be key to survival and future business success.”
- Electronic Chat with Jeroen Morrenhof
- Legacy Systems Are Dead. Really? Don't Count On It.
- Now Accepting Nominations for the 2019 ITA Bridge Awards
- It's time to register for ITA LIVE!
- Registration is Now Open for ITA LIVE 2019!
- What to Expect from a Digital Experience Platform Implementation
- ITA Pro Magazine September Edition is Now Available
- It's National IT Professionals Day
- Save the Date for ITA-LIVE 2019
- OneShield Software and UrbanStat Work Together to Improve Real-Time Analytics and Risk Decision-Making
- ITA LIVE 2019 - SAVE THE DATE!
- Insurance Technology Association Announces New Editor-in-Chief
- August 2018 Edition ITA Pro Magazine is Now Available
- Enterprise Architecture in an Agile World
- Top 10 Tips for Securing Your Mobile Devices and Sensitive Client Data
- Industry Insight: 4 Global Insurance Trends in Digital, Data, Content Services and Security
- Diving Deeper into Prioritizing Your Strategic Digital investments
- Why Content Rules
- How Mass Personalization Will Open the Small Business Benefits Market
- At Year End 2017, Will Your Organization Be Protected from Cyber Risks?
- Do Insurance Bots Dream of Mitigating Risk?
- Conditioned to Respond
- Managing & Mobilizing Insurance Data in a Connected World
- Race to the Finish Line
- New Tools, New Opportunities in Claims
- ITA LIVE: Reaching Insurance Industry Crossroads
- Advice to Insurance IT Leaders: Keep Your Eye on the Ball
- New Date, Venue for ITA LIVE 2017
- Guidewire Makes Major Push to Small and Midtier Market by Acquiring ISCS
- Insurance Disruption is Happening Right Now
- Insurity Adds Strategic Investment Partner, General Atlantic
- Beyond Transformation: The Convergence of Finance, Risk, and Actuarial Functions
- The Rapid Evolution of Consumer Protection Regulation
- Talent Hunt: Finding, Attracting, Retaining Top People
- Insurers Flexing Their Distribution Models
- Technology Driving Disruption in Insurance
- Fear of ‘Next Bubble’ Challenges Life, Annuity Carriers
- Technology Allows Commercial Lines Insurers to Stand Out
- Single Sign-on Viewed as Biggest Tech Challenge for Agencies
- ISCS Observes 20th Anniversary; Scurto Predicts Major Changes Ahead
- Policyholders and Their First Impressions
- Progressive Making Progress on the UBI Front
- High and Dry: Insurers Search for Disaster Recovery Plans
- Insurers Sign The (Un)Dotted Line
- Reflections of a Retired Insurance CIO
- Mobile Device Management Just One Answer to BYOD Issue
- Lessons from GEICO and Progressive on Winning the Critical Buying Stage
- You Are a Target for a Cyber Attack
- Web-based Systems are the Next Evolution in Claims Technology
- Gaining a “Wow” Experience from Web Users
- Time to Shift from Business/IT Alignment to Business/IT Alliance
- Healthcare Insurers Changing to Consumer Model
- Organization is the Key for Selecting Software Vendors
- Analysts Expound on the Needs of the Mid-tier Insurance Market
- Finding the Cure for Obamacare’s Website
- New Software Solutions Benefit Insurers on the Inside and Outside
- Products, Market Impede Investment in Systems for Life Insurers
- Combatting Cyber Threats: Predict, Prevent, Persist
- The Future of Telematics Heads Beyond Insurance
- The Shame in Cyber Security Lapses
- Building Policy Administration Systems for the Future
- Insurers Look Into The Eyes of Their Policyholders
- It’s a New Dawn for the ITA
INSURANCE IT NEWS
- Crawford Technologies Announces Release of ePresentment Gateway for Box
- New Study of More than 100 Insurers Finds Success Among Early Adopters of Emerging Tech, Says Novarica
- Anshuman Purohit Assumes Senior Technology Leadership Role at CastleBay Companies
- AVYST Welcomes Kitty Ambers as Chief Growth Officer
- Agero Strengthens Executive Team with Bill Gerraughty as Chief Financial Officer
- Electronic Chat with Jeroen Morrenhof
- 2019 Global Insurance Accelerator Cohort Reflects Evolution of InsurTech
- Nearly 50% of US Insurers Are Enhancing Security Capabilities Across the Board, Says Novarica
The Email Chat is a regular feature of the ITA Pro magazine and website. We send a series of questions to an insurance IT leader in search of thought-provoking responses on important issues facing the insurance industry.
ITA LIVE 2019
The tide is up! It's time to register for ITA LIVE 2019, our annual educational and networking conference! Our theme is "The InsurTech Revolution: Cutting Through the Hype." and we'll be bringing in a torrent of industry thought leaders, amazing insight and wonderful perspectives on the world of insurtech and its impact on the insurance landscape.
ITA LIVE 2019 will present real-life examples of true startup technologies that are helping insurers gain real advantage -- and a competitive edge -- in the marketplace. We’ll highlight the more successful InsurTech partnerships, while offering case studies that demonstrate exciting innovation and cutting-edge techniques impacting all aspects of the insurance ecosystem.
Ride the wave to LIVE 2019. Sign up today! We look forward to seeing you in May, 2019!
BLOGS AND COLUMNS
You have surely heard it said that small businesses are the growth engine for America. Today, the phrase has a special ring to it for benefits... READ MORE
With stagnant growth and lingering low interest rates, the life insurance industry faces a challenging future... READ MORE
Finding insurance carriers willing to write commercial lines risks has always been a challenge for producers... READ MORE
As Guidewire Software prepares for the start of Connections, its 11th annual user conference that begins on Nov. 2, Brian Desmond, chief marketing... READ MORE