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.”
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