Bad Customer Experience Causing Insurance Sector Instability

Tuesday, September 1, 2015 0 No tags Permalink

Accenture Strategy has just published a brand new research report, titled Capturing the Insurance Customer of Tomorrow. This is a comprehensive report covering 33 different countries, and collating the views of over 13,000 individual life insurance customers.

Some rather surprising statistics are presented within the pages of this report, which tend to point at the fact that when it comes to Customer Experience Management (CXM), then most large life insurance firms are failing to deliver a good customer journey.

The most heavyweight fact to come out of this report, is that only 29% of consumers are happy with the customer experience they are receiving from their current life insurance provider. Alongside this fact, we also find that 21% of consumers feel that all life insurance firms offer comparable products, with regard to features and price. So reading between the lines, we can see that there is a subset of people who took part in this research that are a) unhappy with the service they are receiving, and b) believe that other insurance firms have the same kinds of products available. This subset we can conclude, is in clear danger of churning.

Add to this the fact that 23% of people who answered this survey, said they would consider moving to an online only insurance firm, and the possibility of churn gets even higher. As a side note, 49% of respondents indicated they would like their current insurance firm to deal with them online more frequently.

When it comes to customer loyalty, things look equally as grim. Only 16% of global consumers said they would buy more financial products from their current insurance provider. Slightly better is the fact that 27% of insurance customers said that they trusted their current insurance provider. Still not a great number, but nevertheless, a good one for this particular set of stats.

Now, we think everyone can agree these figures are not very good. We have an entire market here, where a large percentage of consumers are likely to churn, where customer loyalty is running low, and where it seems very few companies are managing to differentiate themselves.

Here at SandSIV we could solve these problems for any life insurance provider who wants to do better at delivering an exceptional customer experience. For more information, contact us at info@sandsiv.com.

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