Customer loyalty in the insurance industry is at risk, one report says, as only 30% of those included in a recent global survey reporting positive experiences with their insurers.
On average, only one in three customers across 30 countries had a positive experience with their insurance company, notes the World Insurance Report 2013 from research and consulting firm Capgemini, produced in collaboration with finance industry association Efma.
The report differentiates between customer experience and customer satisfaction. “Customer experience reflects the entire customer lifecycle while customer satisfaction is just a one-time measure of how products and services meet or surpass customer expectations,” Capgemini notes.
So, while the report’s Customer Experience Index (CEI) suggests that 62% of consumers have registered positive customer satisfaction levels, only a third reported positive customer experiences. The CEI looks at customer perception of quality of service with products, networks/channels, and customer lifecycle.
The report also suggests that two thirds of customers are at risk of retention with only a neutral and/or negative customer experience. Of note, customers reported more positive experience with banking than with insurance.
“When customers have neutral or negative experiences with an insurer, opportunities are created for insurers to ‘court’ other carrier’s customers, and customers may switch even for minimal extra benefits,” Jean Lassignardie, chief sales and marketing officer for Capgemini Global Financial Services commented in a statement on the report.
“Even in the U.S., the country with the highest customer experience ratings, insurers still face a risk of retention rate of 50 percent meaning no one is immune,” he noted.
To improve customer experience, many insurers are planning to invest more in social media and mobile technology, the report suggests. More than 50% of insurers in the global survey report making social and mobile a priority over the next two years, Capgemini notes.
Mobile technology is viewed by insurers as increasingly important for areas such as quotes and claims management, the company suggests.
The entire report is available on Capgemini’s website.