It turns out that it takes more than just customer satisfaction to keep customers loyal to their insurers. A new survey just released by Accenture Global found that while 86% of insureds who filed a claim were satisfied with how it was handled, 41% of those customers are still likely to switch insurers in the next 12 months. Why?
"The very act of filing a claim makes a customer much more likely to switch insurers, regardless of how satisfied they are with the experience," says Michael Costonis, a managing director of Accenture's insurance industry practice and global head of claims services. "Insurers should look at how connected devices and other digital technologies can help customers better manage risks to reduce claims frequency."
The study, which is based on a survey of nearly 8,000 vehicle and home insurance customers in 14 countries, also found that 14% of insureds who submitted a claim in the past two years were unhappy with the way it was handled. Unfortunately for their insurers, 83% of these dissatisfied clients have either already changed companies or are planning to in the coming months.
But the news isn't all bad. The majority of customers (77%) are willing to share personal information with their insurers if there are some additional benefits in return such as lower premiums, quicker claims settlements, and personalized recommendations that could help manage their risk better and avoid losses.
What kinds of information are they willing to share?
- The condition of their cars – 56%
- Driving habits – 52%
- Location via Global Positioning System (GPS) – 39%
- Information from smoke/carbon monoxide/humidity & motion detectors – 78%
- Video camera footage – 35%
"Customers are willing to share information, and insurers that are able to use this information to help customers manage risks and reduce the number of claims will not only lower claims costs, but may gain an advantage in terms of customer loyalty," says Thomas Meyer, managing director of Accenture's insurance industry practice in Europe, Africa and Latin America. "To do this, however, insurers will also have to meet customer expectations in a wide range of areas, including speed of settlement, transparency and use of innovative technologies such as mobile and social media."
The most important factors contributing to customer loyalty are how quickly claims are settled and transparency during the process, said 94% of the respondents. The value of digital channels should not be underestimated, either. Two-thirds of the customers surveyed said they prefer using digital channels to check their claims status and 53% said they wouldn't recommend their insurer to friends and family if they didn't have the ability to use digital channels to communicate with insurers.
Social media also influences customers' perceptions and approximately one-third of the respondents will use these channels to post their experiences, whether negative or positive. Forty-three percent said they will read reviews that others post about their experiences.
Where the respondents lived also seemed to influence how satisfied they are with their claims experience. Customers in Denmark (92%), the Netherlands (91 %) and the U.S. (90%) had the highest customer satisfaction rates, while residents of Italy (73%) and Spain (76%) had the lowest.
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