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The Actuary The magazine of the Institute & Faculty of Actuaries

Customer service in insurance sees improvement, survey finds

Insurance is no longer one of the top three sectors with the worst customer experience, according to a survey by service design consultancy Engine


Train delays © iStock
The public transport sector has the highest proportion of customers with the worst experience. © iStock

Based on responses from more than 1,000 UK adults, the firm’s latest Customer Experience Survey finds that the proportion of people saying insurance is among the worst culprits for customer service dropped to 25% from 27% in 2015.

Insurance is one of the sectors to see an improvement, as it dropped from the third to the fifth worst and was overtaken by public services and broadband/media.

However, Engine’s co-founder Oliver King said “there’s still a long way to go.” 

“Improving things at the coal-face really requires a fundamental change at the top by creating a compelling vision about what the company stands for and how it deals with customers, which resonates with both senior stakeholders and front-line customer roles.”

In order to remain competitive and reduce churn, King said insurers needed to become “more customer-centric and get ahead of the rising tide of service expectations”. 

“Customers are looking for services that create a lasting positive impression and ultimately make their lives easier,” he said.

“Pricing can be copied by competitors but what really wins the day are easy to use services that weave together great functionality, usability to connect emotionally with customers and save them precious time.”

Top 10 sectors for worst customer experience/service, with 2015 figures in brackets:

Public transport/trains – 38% (32%)

Utilities – 36% (31%)

Public services – 32% (25%)

Broadband/media – 30% (26%)

Insurance – 25% (27%) 

Mobile – 23% (25%)

Banking – 23% (23%)

Retail – 18% (17%) 

Food services/restaurants – 14% (15%)

Automotive – 13% (17%)