ILC ARTICLE

Consumer trust around the claim is improving – CII


The Chartered Insurance Institute’s (CII) latest trust index, a survey of 1,000 consumers and 1,000 small businesses from across the UK, has found that the public’s experiences of making a claim are significantly more in line with their expectations than they were a year ago.

In order to measure the gap between consumers’ expectations and the performance they see from an insurer, the index asks consumers and small businesses to rate what is vital for insurers to deliver and whether it is being delivered by their insurer (both out of seven). These figures were then contrasted to find the gap between expectation and delivery.

Comparing the results of this year’s survey with last year’s, the index shows improvements in consumers’ trust in the ‘moment of truth’ around making a claim within the motor, travel and home insurance markets.

In 2018, the gap for the speed with which a claim is processed was 7.12 however in 2019 it was 5.43.

Consumers’ experience of respect for the customer scored with a gap of 6.39 last year, whereas in 2019 it had reduced to 4.84.

Customer control over the process in 2018 sat with a 6.06 expectation and performance gap, however this year the gap was only 3.43.

The area which showed the biggest gap between expectations and performance is still the way in which insurers reward customer loyalty – this increased from 7.64 last year to 9.1 in 2019.

Guiding Principles

Dr Matthew Connell, director of policy and public affairs, said: “Last year, we highlighted the impact that renewal pricing was having on consumer trust. Since then, the insurance sector has implemented the ABI/BIBA Guiding Principles and Action Points for General Insurance Pricing, and there has been an encouraging amount of high-profile marketing activity promising existing customers that they will be treated fairly.

“This means that insurers have increased awareness of the issue of rewarding loyalty but perceptions around performance have not changed yet. We expect that as the actions taken by insurers to reward existing customers for their loyalty take effect, the rating around this crucial aspect of trust will begin to rise. This experience underlines the fact that once trust falls, it takes a long time to rebuild it.”  

Source:  Cover

"This experience underlines the fact that once trust falls, it takes a long time to rebuild it."

Dr Matthew Connell, Director of Policy and Public Affairs

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