New data released by the Chartered Insurance Institute (CII) indicate that professional brokers are outperforming price comparison sites, banks, building societies, and insurers in building consumer loyalty and confidence.
The CII’s Public Trust Index shows a growing gap between consumer expectations and their actual experiences with insurers, marking the widest disparity since the survey's inception in 2019. This trend underscores the importance consumers place on loyalty rewards, such as not paying more than new customers, and their dissatisfaction with insurers' performance in this regard.
The “opportunity gap,” which measures this difference, has increased for the sixth consecutive survey, now standing at +10.59, surpassing the previous peak of +10.35 in May 2020.
A similar trend is observed in consumer confidence. Respondents indicated that insurers could improve in handling claims professionally, fairly, and efficiently, as well as in assessing risks individually.
The opportunity gap for confidence has also reached a series high, equalling the previous peak of +8.44 from May 2020. Additionally, consumers reported a decline in their experiences with insurers during the claims process compared to the previous survey. However, the importance placed on these factors also decreased, resulting in a narrower opportunity gap.
Consumers who purchased insurance through price comparison sites reported the widest opportunity gaps regarding loyalty. In contrast, those who used professional brokers reported the narrowest gaps.
Overall consumer satisfaction dropped by 1 percentage point to 85%. The Index also examines responses by age, gender, and ethnicity. Satisfaction among respondents aged 18-34 fell to 79% from 82%, notably lower than other age groups. Conversely, satisfaction among those aged 55 and over increased from 87% to 88%.
CII group policy & public affairs director, Dr Matt Connell (pictured above), commented on the findings, noting that despite insurers' efforts to comply with the FCA’s General Insurance pricing rules, consumers remain unconvinced of the benefits.
“Consumers rated brokers’ performance as better than any other for buying insurance,” he said. The results underline the importance of interactive advice to consumer understanding. While some may see the services brokers offer as simply a cost to the consumer, it is clear from this evidence that if insurers want to achieve the highest levels of consumer understanding, a tailored explanation from an adviser is essential
The data also indicate that broker-assisted consumers report better experiences regarding claims speed, aligning with the Consumer Duty outcome of customer support.
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