Are you happy with your insurance cover and cost? The answer may be yes – but that may not prevent you from looking elsewhere for a better deal.
That is the finding of a research study by Accenture this month, which discovered that even if a person or business is happy with an insurance claim, it does not necessarily stop them jumping ship to another insurance provider.
Accenture rounded up almost 8,000 insurance customers in 14 different countries and questioned them about their insurer loyalty.
Their study showed that while almost 9 out of 10 insurance customers (86 per cent) said they were satisfied with the way an insurance claim they made in the past two years was handled, more than two-fifths of them (41 per cent) said they were "likely" or "very likely" to switch to another insurer sometime in the next 12 months.
Unsurprisingly, insurance customer churn was even higher among dissatisfied consumers.
Of those respondents who had claimed on their insurance in the past two years, 14 per cent of them said they were not satisfied with how it was handled by their provider. More than 8 out of every 10 dissatisfied customers (83 per cent) said they were planning to, or have already, changed their insurance provider as a result.
This means that out of around 8,000 respondents, approximately 2,800 satisfied customers and 1,000 dissatisfied ones were planning on leaving their insurers in the next 12 months, or have already done so.
Finding better health insurance deals
With health insurance heavily incentivised, it is even more important to find an insurance package that lets you keep the costs low. Lifetime Health Cover (LHC), for example, can see over 30-year-olds pay an additional 2 per cent for every year they remain uninsured. In terms of business health insurance, this can push premiums up significantly for older employees.
With a 65-year-old likely to pay 70 per cent more on health insurance than a 30-year old, many customers can see the benefit of shopping around and cutting costs where they can, despite being relatively satisfied.
Managing Director in Accenture's Insurance Industry practice and Global Head of Claims Services, Michael Costonis, said this shows insurance companies could do more to both attract and retain consumers.
"While a customer who is dissatisfied with the way his or her claim was handled is almost certain to defect, a satisfied customer will not necessarily remain loyal," he explained.
"The survey results clearly show that delivering average claims satisfaction levels is not enough. The bar has been raised and in order to clear it, insurers need to provide a differentiated claims experience that not only delivers on service but maintains the appropriate financial discipline as well."
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