Two thirds of consumers agree that insurers are trailing
other industries on customer service and rewarding customer loyalty.
70% intend to research their next insurance purchases and
the use of online resources is to set increase dramatically.
75% report a lack of contact from their existing provider at
the point at which they were due to renew their insurance
Ernst & Young’s Global Insurance Customer Survey highlights
how a combination of increased expectations and accessible technology mean that
the insurance industry is now facing a far more demanding customer and that
those suppliers who fail to make a rapid move to a more consumer-friendly
business model risk being left behind.
Shaun Crawford at Ernst & Young, comments “The
expectations of consumers are constantly evolving and the insurance industry
has not always managed to keep pace. There are some remarkably consistent
underlying themes about what consumers want and where they expect more from
insurers.”
The survey of 24,000 insurance customers across 23 countries
underlines that globally the consumer is more active and better informed – over
two-thirds of consumers will proactively research their next purchase, more
than double those who researched their last purchase. Consumers have high
service expectations, but a substantial majority of them are reporting little
or no proactive communication from their suppliers and think that insurers have
fallen behind other sectors in customer service and rewarding customer loyalty.
Shaun Crawford explains, “Consumers are taking a much more
proactive approach to educating themselves about their products and their needs
and there is frustration with the industry’s apparent lack of
transparency. Consumer expectations in
terms of service standards and rewards for loyalty are already being met by
other service industries and the modern customer wants to see the same from
their insurer. Unless the industry
addresses these issues quickly, we expect switching rates to increase in the
next decade and that non-traditional providers with better service platforms
could use the opportunity to take market share.”
The majority of consumers across the globe believe that the
life industry is trailing in service standards and in rewarding customer
loyalty. Shaun Crawford says, “The results are clear - the consumer is used to
the multichannel, consumer-friendly approach of other service industries, and
wants insurers to match them. Keeping
customers is no longer just about price or brand, building a two-way
relationship will be key to the success of the industry in the future.”
Consumers are now proactively researching their options. 70%
intend to research their next life purchases.The use of online resources to
research insurance products is also set in increase dramatically over the next
few years.
Shaun Crawford comments, “The rise of new technologies does
not mean that existing channels will become obsolete but consumers will expect
a seamless, consistent response from insurers and so the new channels need to
be integrated effectively.”
Greater transparency and simpler products will be a deal breaker in the
future.Well over a third of consumers find the life products on the market too
complicated. They would like to see simple and more transparent products.
Private medical insurance news: 26 February 2012
