- Over a third of consumers believe that insurers do not treat customers well
- That is despite over two-thirds of insurance customers saying they are likely or very likely to recommend to a friend or relative their current insurer
- 73% of insurance purchases now involve price comparison sites
Target Group, the financial services outsourcing and software business today reveals that the insurance industry is facing a customer expectation challenge. The findings of its latest whitepaper Myth v Reality: The Expectation Gap in the UK Insurance Industry has revealed that 40% of consumers do not believe that insurers treat customers well. This is despite over two-thirds (69%) of insurance customers saying they are likely or very likely to recommend a friend or relative to their current insurer.
The whitepaper, which is based on a survey of 1,000 UK consumers, also reveals that almost one fifth (20%) of respondents admitted that they didn’t even look for important information, like how to make a claim, at the point of purchase.
Nearly half of insurance customers (49%) said that finding the cheapest product on the market was either important or essential while 39% cited value for money as the most important factor when picking a policy. Further important findings revealed that nearly three quarters (73%) of insurance purchases now involve price comparison websites and nearly a third (32%) of respondents researched their most recent insurance provider using a smartphone or tablet.
Bill Alley, Co-Group CEO Target Group, says: “The findings of our latest white paper present an interesting challenge for UK insurers. While nearly three quarters of respondents are more than happy to recommend their current insurer to friends or family, over a third still believe the industry doesn’t treat its customers well overall. Our findings suggest that this could be down to a combination of residual impressions of the industry left by the financial crisis, negative personal experiences in the past and a lack of engagement by policyholders when it comes to finding out important information such as how to make a claim.”
Alley concludes: “The question insurers need to address is how they turn initial goodwill from customers into mutually rewarding and long-term relationships. With the prevalence of price comparison sites reducing the direct interaction insurance brands have with their customers, it’s vital that omni-channel technology and practices are adopted to make the most of each touch point with the customer to leave them with a positive experience.”
Target Group is a leading provider of Business Process Outsourcing (BPO) and software solutions for over 50 major financial institutions across the globe, including clients such as Goldman Sachs, Morgan Stanley, Credit Suisse, Barclays and Shawbrook Bank.
Our leading fintech platform manages assets in excess of £24 billion, enabling our clients to automate complex critical processing, servicing and administration of loans, as well as investments and insurance. We deliver competitive advantage and enable scalable growth. Alongside BPO and software solutions, Target leverages deep domain expertise to advise on process improvement, due diligence, and regulatory compliance. Target systems currently process over 18 million accounts and collect £3billion of direct debit payments each year on behalf of both private and public sector clients.