Insurance companies' loyalty to clients

Ernst & Young analysed policyholders' expectations and their opinions of insurance companies' performance in seven regions of the world (23 countries), surveying 24,000 clients. It turned out that insurance company clients rarely renew their current contracts, are not loyal to their insurers and are dissatisfied with the quality of insurers' service. The insurers have their own explanation for these results.

Ernst & Young concluded that insurers often fail to keep up with changes in the economy, while clients themselves are placing ever higher demands on service quality. A total of 24,000 insurance company clients were surveyed across seven major regions of the world: Asia, Europe and the Americas, as well as India, Japan and the UAE. Clients' level of trust is highest in India (93%) and lowest in Japan (51%).

There are very few loyal clients on the insurance market who are willing to keep renewing their existing policies without analysing competitors' offers. A significant share of insurance company clients are dissatisfied with the level of service and the quality of customer care.

The loyalty problem may become more acute in the near future, as a result of which some clients will abandon familiar insurance arrangements and "old" companies in favour of those players that fight most actively for clients' trust. The development of modern internet technologies is also having a major impact on the insurance market. More and more consumers analyse offers online, often taking advantage of the opportunity to conclude contracts online.

Dissatisfaction with insurance companies' performance is backed up by figures. For example, more than 50% of respondents believe that the quality of service in the insurance segment is lower than in other markets (banks, pension funds). In addition, there is a high share of clients who are unhappy with the lack of economic and other incentives from insurers to retain their loyalty.

A growing number of consumers analyse offers on the internet, often taking advantage of the opportunity to conclude contracts online. Dissatisfaction with insurance companies' performance is supported by figures. For example, more than half of respondents believe that the quality of service in the insurance segment is lower than in other markets. In addition, there is a high share of clients who are unhappy with the lack of economic and other incentives from insurers to retain their loyalty.

These statistics clearly show how important it is to use the services of professionals when choosing an insurance company.