Insurers Must Move Beyond Traditional Customer Satisfaction Metrics

Insurers’ positive customer experience ratings are much lower than their customer satisfaction levels. To truly understand a customer relationship, insurers must apply comprehensive customer experience metrics.

As insurers struggle to keep costs under control while driving growth – or at least retain existing customers – customer experience has emerged as a key area for both better understanding their customer relationships and delivering on customers’ preferences for products and services.

As insurers have migrated to a more customer-centric operational approach they have learned that customer experience quality is a far more relevant metric to get a true picture of their customers’ satisfaction across products and channels over the entire customer lifecycle. Traditional customer satisfaction metrics rely on readings that are taken at a single point in time. Customer experience quality measurements, by contrast, can take into account scores of touch points between insurer and customer and determine whether the interaction was positive, negative or neutral. This approach has yielded new insights into insurance customers, including the following:

  • Retention risks are highest for customers having a negative/neutral customer experience.
  • In every geography, insurers’ positive customer experience ratings are much lower than their customer satisfaction levels.
  • Even in the US, where the customer experience rating is the highest, more than 50% of customers are retention risks, indicating that significant opportunities exist to improve experience levels based on the areas customers say matter most.
  • When compared to their banking brethren where interaction points are much more frequent, insurers have marginally lower customer experience ratings. Banking’s higher customer experience ratings indicate that best practices in data analytics, market segmentation and cross-channel integration are being implemented.
  • Online channels are now preferred by insurance customers for activities like finding best price and comparing policy coverage, but customers prefer physical distribution networks (agents and brokers) when it comes to gaining trust.

Some of these findings may be unsurprising, but all provide validation about customer perception and behavior that has profound implications for technology strategy. However, the most important revelations are those that an individual insurer can clean from examining the experience of its own customers, which in turn will counsel a more specific view of the imperatives that carrier faces in retaining and building its customer base.

Scott Mampre // Scott Mampre, a business and transformation executive with over 25 years of experience advising and delivering solutions for industry leaders in the area of business, operations and technology transformations. His experience  includes working insurance carriers from the P&C and life & annuities, and health sectors, as well as with stakeholders across the healthcare value delivery system, including manufacturers, intermediaries, and healthcare delivery organizations.

Comment (1)

  1. There is no ONE insurance conmpay that is right for everyone everyone is rated individually and all companies have different likes and dis-likes , different credit tiers, different business models, and many other factors that can vary your rate and a QUOTE is ONLY a quote until the policy is issued.Typically, insurance rates will vary from State to State and can even vary by ZIPCODE! It also will depend on the type of car/truck, coverages, limits of liability, and driving record. Some companies run credit scores and MOST run a motor vehicle report and CLUE (Comprehensive Loss Underwriting Exchange) report to see about undisclosed accident involvement. A lot of these reports might get a BETTER finding with your SSN BUT we CAN get this info WITHOUT your SSN.The best thing to do is call a LOCAL independent agent or broker. Don’t go across town, or to some other city look for someone CLOSE. Just look in the phone book for the PIA or Big I (Trusted Choice) logos and you will find a professional licensed agent that will be able to help you solve your insurance problems, and give you rate comparisons of several different companies. An independent insurance agent will normally have a dozen different companies and if he cannot help you, he should be networked with other local agents that can. In my agency, we have companies that do NOT run a credit score and welcome drivers with less than perfect driving records and specialize in youthful operators!Most of the replies on this site say go to this on-line carrier or that on-line carrier or that 1-800 number but I’m sure that when you do, you will find some impersonal computer user with a script to work from and you won’t be able to talk with the same person every time you have a problem!Good luck, drive RESPONSIBLY and I hope this helps!

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