NZ insurance brands struggle to meet customer expectations - study

A recent study has revealed that New Zealand insurance companies are not meeting customer expectations, with over 71% of respondents feeling that brands across various sectors, including insurance, fail to deliver on their promises.

The Brand Experience Gap Study – commissioned by Accenture Song, the tech-powered creative group of Accenture – evaluated customer experiences with 80 of New Zealand’s largest brands across eight sectors.

The study involved 2,479 New Zealanders who rated their interactions with brands in sectors such as financial services, telecommunications, insurance, utilities, travel and tourism, retail and grocery, and media and entertainment. Customers valued attributes such as ease of interactions, good customer service, and security of personal information.

Insurance companies fail to deliver customer promises

The study found that insurance companies were among the worst performers in New Zealand, with 72% of users indicating that providers do not fully meet their promises.

One of the key insights for the insurance industry was the importance of customer confidence in claim payouts. This was highlighted as the most critical issue, reflecting a broader dissatisfaction with the reliability of insurance services.

“Kiwi brands are failing to deliver the very thing their business is built on – its promise to the customer,” said Storm Day, chief business officer at The Monkeys, Aotearoa & Accenture Song. “There are multiple factors that influence this: businesses are scrambling to cut costs and protect profits against a strained economic backdrop. But when customers see such a vast gap between a brand’s promise and the experiences they encounter, their trust for the brand erodes.”

Technology can enhance customer experiences in the New Zealand insurance industry

Day noted the potential for technology to enhance customer experiences in the insurance industry.

“Technology offers enormous potential to help companies live up to their promises. We’re helping clients use Generative AI to personalise the customer experience,” she said.

The study suggests that insurance companies need to close the gap between their promises and customer experiences to remain relevant and achieve sustainable growth. Focusing on reliable claim payouts and leveraging technology for personalised service are crucial steps towards rebuilding trust with New Zealand consumers.