The South Africa Customer Satisfaction Index (SAcsi) discovered that people are unhappy with the value they’re getting from their insurance.
For the second year in a row, the average index for the industry has gone down. The survey, taken on a sample of over 3,000 policyholders and carried out from December last year to March.
The brands included in the study were Hollard, Mutual & Federal, Santam and OUTsurance. OUTsurance had the highest score (80.0 out of 100). Santam (77.3) and Mutual & Federal ( 77.1).
The industry average is 76.4 out of 100. Hollard was the only one below the industry average with a score of 71.6. This average is 2.4 points lower than last year.
Customer satisfaction due to lack of regular contact
SAcsi founder Adré Schreuder said the fall in the average was because most firms were not meeting expectations.
In the short-term industry, buyers have little contact with the seller. And every complaint had a huge impact on the satisfaction index.
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OUTsurance may lead the overall scores, but it had a big decrease in its Net Promoter Score by 8%. Which is a measure of how likely customers are to recommend their insurance provider to others. Hollard had a slightly better promoter score at 7%. The survey suggests an active social media plan can boost a company’s score.
Customer satisfaction means an increase in profits
Another point looked at was customer loyalty. What is looked at is how long customers remain with the company after they increase their prices. Schreuder noted that the entire industry had a decline in customer loyalty.
Schreuder’s findings were echoed by a report released by the Ombudsman for Short-Term Insurance (OSTI) last month. The body processed more than 10,000 complaints in the past year, a 10% increase from the previous year.
Of the 10,000-plus complaints, almost half were from the motor insurance sector while 20% were from household insurance. Get free home insurance quotes on the internet.