Insurers will lose customers if they fail to improve service - survey

UK insurers will lose customers if their service is not up to scratch, new research shows.

The research, commissioned by customer experience technology firm Quadient, also shows insurers need to focus on data protection and improve customer apps.

Market research firm Lightspeed polled 2,060 UK consumers on behalf of Quadient as part of a wider European survey. It found that over three quarters (77%) of UK participants would ditch businesses that do not meet their expectations, with more than half (52%) of those surveyed believing that they have more power than five years ago.

Customer communication was a vital factor in determining whether to remain with a business, with 81% of UK respondents highlighting this as important in their decision-making process.

A slew of insurance apps, such as AXA-backed gadget insurance app Trov and ’personal insurance concierge’ Brolly have been developed lately aiming to improve customer experience, but there is more work to do. Just 8% of those surveyed in the UK felt that the insurance industry was the best where it comes to mobile apps.

Quadient Europe, Middle East, Africa and Asia Pacific president Ian Clarke said: “Whether they like it or not, businesses in every industry have to adapt to consumers’ new power and customer experience expectations”.

“For instance, using mobile apps to both communicate and provide essential services is a hallmark of the modern customer experience, yet some industries are lagging behind even in this.”

In addition to seeing communication as important, UK consumers are also becoming more data-savvy and are increasingly placing value on the data that they share with insurers and businesses.

The value attributed to personal data by UK consumers was €166 (£147). The UK ranked second of the countries surveyed for this, with only consumers in the Netherlands having higher expectations (see table). In exchange for their data, consumers are likely to expect better services and discounts to improve the customer experience.