August 16, 2013

It has long been understood that there is virtually no end to the amount of abuse consumers will put up with from their banks before switching. The same, unfortunately, does not apply to insurance. Bankstone News blames the scourge of the annually renewable policy.

That and comparison sites, obviously. For it is they who have done more than anyone to create a culture in which anyone who doesn’t change insurer every year is looked upon as some kind of numpty.

And – according to  a press release put out by ‘call centre technology provider’ Aspic this week – if the constant search for lower premiums isn’t enough to convince consumers to dump their incumbent insurance providers, the merest hint of the tiniest failing on the customer service front is sure to do the trick!

Aspic’s latest Consumer Satisfaction Benchmarking Report indicates that consumers are more likely to change their insurer than any other service provider. Bizarrely, this non-revelation has received widespread coverage in the insurance press this week.

The fact that consumers are also (marginally) more likely to switch their insurance provider than any other provider after “one bad experience” is – if anything – even less of a revelation.

Given that consumers were probably going to switch insurer anyway before too long, the fact that only 33% said they would dump a “one bad experience’ insurer could be seen as comparing pretty favourably with the 30% who said they’d drop their credit card provider or the 27% who said they’d change internet service provider, faced with equivalent provocation.

Marginally more interesting was Aspic’s finding that, when asked which of a range of service providers gave them the best service, only 3% cited their insurance provider – compared, worryingly, with banks (equal top position along with mobile phone providers) on 13%.

Should insurance firms be worried at this unflattering comparison with bankers? Probably. But, luckily, Aspic’s press release offers some invaluable advice for insurance providers keen to boost their customer service satisfaction levels.

Aside from buying or renewing a policy, Aspic notes, “the main reason that people need to interact with [insurance providers] is to claim, which is often a period of stress and worry. Emotions are heightened, and customer service should be handled carefully.”

So there you go. Simple really!

bin


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