We’ve all heard the “shop around” advice for customers looking to renew insurance policies, but while most are keen to sniff around, a survey shows nearly a third of Brits find the process frustrating.
A YouGov survey, commissioned by software company Pegasystems, examined customers’ attitudes towards the renewal process and what makes them renew. Here’s what it found, based on January 2018 responses from more than 1,600 UK adults with cover:
- 62% would allot the time to find the best price from a range of insurance providers.
- 30% described the hunt as “frustrating”; 16%, “time-wasting”; 9%, “satisfying”.
- 73% said being given a quote comparison with equivalent insurers – to assure the quote is reasonable – would encourage them to stay with their current provider.
- 69% would likely renew with their existing insurer if they’re offered a practical three-year deal on premiums without cost hikes.
- 60% would be inclined to keep their policy with the same firm if the renewal process was made simpler and personalised.
“The clear message from consumers is they find the quest for new deals at renewal frustrating and a waste of time,” commented Tony Tarquini, European insurance director at Pegasystems. “They want their time back, the work of crafting a better deal done for them, and to be confident that they are getting a reasonable deal.
“For insurers fighting to retain customers it is significant how consumers are willing to make a commitment back to the insurer who will give them that comfort through innovative offers and better, personalised service at renewal.”
Tarquini said “re-imagining” renewals for everyone’s benefit requires new digital and agile operating models that are based on technology centred on artificial intelligence and real-time decisioning.
“By doing this, insurers can break the vicious cycle forced on them of ‘new customers only’ pricing, reward loyalty and kill off the loyalty tax stigma,” he said.
Related stories:
SchemeServe enhances insurance software for brokers
Policyholder slams "ridiculous" £10,000 insurance excess
.jpg)
