CRM for Insurance

A new report has highlighted how UK insurers should perhaps be paying a little more attention to how they approach customer experience, after it was revealed only 16 per cent of customers feel it had improved over the last 12 months.

The KPMG Customer Experience Barometer suggested personal interaction, embracing digital channels and considering a new way of thinking in terms of retail could be three ways to go about bolstering clients’ experience.

Such recommendations were made after it was revealed that e-retailers performed better in the index, with well over half (53 per cent) of clients having extremely positive things to say about their experience of this. Not to mention that better customer experience actually contributes to lower cost-per-acquisition.

UK head of insurance at KPMG Phil Smart explained how addressing customer experience was indeed a challenge for insurers, not least as the market is continually evolving. Furthermore, with so many different rivals competing for the same market space, it can be hard for one insurer to stand out from the crowd over another.

Nevertheless, he went on to say: “Commoditisation hasn’t held online retailers back and insurers have much to learn from this sector.” Global head of insurance at the organisation Gary Reader reiterated Mr Smart’s about the value of being flexible, adding that insurers would need to be able “to deliver a high-quality and differentiating customer experience”.

A reconsideration of the approach taken by insurers in the UK is arguably needed after the report showed the UK’s figure to be notably lower than those of other countries. For example, in China almost two-fifths (39 per cent) of insurance clients felt there had been an improvement in their experience of working with insurers.

What’s more, Association of British Insurers’ figures show the UK’s insurance market to be the largest in Europe and third largest in the world.

The full KPMG report was based on a survey of 5,000 customers from 160 general insurers, leading banks, life insurers, utilities and e-retailers in the UK, the US, Australia, China and Germany.