Posted by Andrew on September 10, 2018
Much like any other service-driven industry, insurance companies rely on customer satisfaction to stay in business. If customer satisfaction is low, insurers are at a significant risk to lose their customers to competing companies. Customer loyalty is no longer what it used to be, either. Forty percent of policyholders are unhappy with their current provider and they are considering switching to a new insurer within the year.
This is a significant risk for a few reasons. Insurance companies could see $400 billion in insurance premiums switch hands over the span of one year. That is a significant amount of destabilization in the industry. While some insurers may benefit from the change, many cannot withstand such a significant change in finances. One-fourth of customers are also willing to cancel an existing contract regardless of fees or penalties. Compounding this problem, customers are willing to shop online to purchase insurance rather than using their existing provider.
Customer satisfaction is the key to loyalty. If customers aren’t happy, they have no incentive to stay with their existing insurance company. The following are several ways insurance companies can increase customer satisfaction:
If your insurance business is struggling with customer satisfaction or noticing problems with customer retention, Actec can help. Contact us to learn how our innovative FNOL solutions can help your company today.