Insurer service up significantly but still ’much room for improvement’

There is still “much room for improvement” when it comes to insurer service despite an uplift in quality over the last six months, according to Gracechurch.

New data published today (25 February 2025) showed that the market average net promoter score (NPS) is up nine points since mid-2024, with the index average at +12.

The improvement represents a 32-point increase since mid-2022, when the study started.

Ben Bolton, managing director at Gracechurch, said: “Back in 2022, concerns were being raised in various quarters about insurer service and sure enough the initial survey baseline results reflected those concerns, with low service ratings on average.

“Since then, many insurers have worked hard to improve and this seems to have been given greater impetus as competition increases and more deploy research to focus effort on the customers’ and brokers’ most important service requirements.

“Insurers at the top of our service index are now achieving NPS scores of 30+, which is positive by any industry standard.”

Inconsistency 

However, the results also show wide service inconsistency across different insurers, with a 58-point gap on the NPS between the best and worst performers.

And the NPS index in Gracechurch’s UK claims monitor, which tracks commercial insurer service among claims specialists, shows the market average stands in negative territory at -3.

Bolton said: “Claims service is a tougher nut to crack. There have been talent challenges, now easing, plus poor technology and ongoing supply chain issues.

“The commercial claims process everywhere is quite clunky but, while it’s far from perfect, some of the leading insurers are now getting to grips with it, including the implementation of solid technology. These players will achieve competitive edge as customers are demanding better claims service.”