Traditional insurance may fend off disruptive automation if, and only if it succeeds in maintaining an empathic touch. On the 9th of August, we reported trends in UK household insurance. Today we bring fresh news of a report by the Institute of Customer Service. This concerns the state of client satisfaction in the UK at July 2017. And it makes interesting reading regarding the UK insurance industry's state of customer confidence.
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The Institute of Customer Service is generally pleased with progress. The UK is back to January 2013 levels, it believes thanks to better complaint handling. However, it cautions that prospects of higher inflation coupled with unsecured borrowing may lead to ‘more exacting demands on price and service’.
This could be music to the ears of automated insurers. The Institute’s UK Customer Satisfaction Index now stands at 78.2%. This follows on four successive improvements, and ‘there is a wide variation of satisfaction across different types of customers, sectors, and organisations’.
The UK insurance sector index is the sole cloud on the horizon, being the only one of thirteen where client satisfaction has fallen. We need to find out reasons why this happened, and what has changed.
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The Institute of Customer Service report reveals that customers expecting excellent service at a higher price are generally more positive when they get it, than clients paying less for a no frills delivery. This opens a line of reasoning that traditional insurance must excel in order to outwit insurance machines.
Insurance Business Mag notes that not all insurers did poorly. LV= did best, while Halifax and M&S improved the most.
As Jo Causon, CEO of the Institute explains, “To begin to build on client satisfaction in an uncertain economic climate, place the customer at the centre of business strategy – or risk losing out to those [insurers] who do.”
The Auger customer satisfaction index is running at 98%, and has improved year on year. We rely on transparency, honesty, and a determination to drive a claim through to its completion, to garner high praise. In addition, one of our major clients (a household insurance name) tells us their independent Net Promoter Score rates us the best of all their suppliers. This means they recommend us most in terms of client satisfaction.