NEW YORK & LONDON--(BUSINESS WIRE)--Majesco, a global provider of core insurance software, consulting and services for insurance business transformation, today announced 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 that 1 in every 3 customers feels that insurers are failing on minimum level service expectations. Even the highest customer satisfaction score in the insurance industry of 69%, reached by motor insurance providers, compares unfavourably with world class companies such as Amazon, which scores 86.7%1 – by comparison rail travellers report an overall satisfaction figure of 83%2.
Other key findings include:
- Over 70% of the market indicates they want a ‘family’ product, combining motor, home, travel and pet in a single insurance policy. Nearly 42% would buy a family product tomorrow, while 30% were unsure but did not rule out the option – highlighting a significant majority (72%) 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% of people but in higher income categories the importance of price falls to 60-75% 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%) or using a secure online portal (49%).
- Over 60% 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% of respondents indicating their insurers communicate with them once a year, whilst 26% received communication two or three times a year.
- Only 4% of customers indicate the enticement of a cuddly toy – such as the friendly rodents and robots so popular as TV advertisement characters with the insurance industry – would influence their decision as to whether to recommend their insurance company to friends or family.
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% 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% of customers of life, pensions and ISA providers are mainly contacted by post, 62% would prefer to be contacted by email – and only 36% want to be contacted by post
A key conclusion that may be drawn from the research findings is that 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.
Vidyesh Khanolkar, Vice President, Majesco (UK) Limited comments, “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. 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.”
1 UK Customer Satisfaction Index of January 2015.
2 National Rail Passenger Survey Autumn 2014
To request a copy of the research report, “Assessing the Quality of the Customer Experience – The 2015 Majesco Research Report on the UK Insurance Market”, please send an email to firstname.lastname@example.org.
Majesco enables insurance business transformation for approximately 140 insurance customers by providing solutions which include software, consulting and services.
Our customers are insurers, MGA’s and other risk providers from the Property and Casualty, Life, Annuity and Group insurance segments worldwide. Majesco delivers proven software solutions, consulting and services in the core insurance areas such as policy, billing, claims, distribution management, BI/ analytics, digital, application management, cloud and more. For more details on Majesco, please visit www.majesco.com.
RedShift Research Methodology
The 2015 Majesco Research Report on the UK Insurance Market was conducted among 1000 UK adults with an insurance policy.
The interviews were conducted online by Redshift Research in May 2015 using an email invitation and an online survey via Redshift Research’s Crowdology panel.
Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. In this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 3.1 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.
Sample was selected from the Crowdology & Crowdology partner panels. Crowdology™ is an online panel owned and operated by Redshift Research. The Crowdology™ panel is balanced across regional, age and gender demographic factors, and is nationally representative of the UK population. Each respondent completes 120 profiling questions before being accepted to join our panel. Panel Quality Management is carried out frequently to ensure reliable surveys.