It turns out that it takes more than just customer satisfaction to keep customers loyal to their insurers. An Accenture Global survey 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.
“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.
The most important factors aiding 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.
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