Research from insurance software provider Majesco indicates that the UK insurance market is failing to deliver on customer expectations.
Market research commissioned by Majesco found one in every three customers feels that insurers are failing on minimum level service expectations.
Majesco highlighted while insurance remains a price sensitive sector in the UK, the research notes that high value customers in particular are not buying on price.
In lower income categories, price is most valued by 80% of people, but in higher income categories the importance of price falls to 60-75%, while the importance attached to quality of service shows a reverse trend.
A third of customers simply wanted to improve the time it took to answer calls, while 29% of life, pensions and ISA customers thought providers could improve service levels by offering 24/7 access to a secure web portal.
Better communication needed
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Furthermore, the research revealed that customers felt insurers of all types should communicate more effectively by making better use of the customers’ preferred channels of communication with a majority preferring contact by email, for all types of insurance.
While 55% of customers of life, pensions and ISA providers are mainly contacted by post, 62% would prefer to be contacted by email – and only 36% want to be contacted by post.
A key conclusion that may be drawn from the research findings is that there is significant gap between customer expectations and what insurers provide today, indicating insurers must make changes that will enable them to stand out from the crowd by delivering exceptional service.
Vidyesh Khanolkar, Vice President, Majesco (UK), said: "The 2015 Majesco Research Report is a wakeup call to an industry that has become hidebound by traditional ways of working and still lacks sufficient focus on the customer experience.
"The report suggests that the insurance industry is not listening hard enough to what customers are clearly saying that they want. Insurers need to make substantive improvements in customer service, make it easier for customers to access documents and customer support. Bring new products to market and improve the ease with which administrative tasks are done online."