Pegasystems recently commissioned YouGov to survey British insurance customers about their attitudes to insurance renewal and what solutions make them renew.
The key findings showed that consumers find the quest for new deals at renewal frustrating and a waste of time. They want their time back, the work of crafting a better deal done for them, and to be confident that they are getting a reasonable deal. For insurers and brokers fighting to retain customers it is significant how consumers are willing to make a commitment back to the insurer who will give them that comfort through innovative offers and better, personalised service at renewal. If complying with FCA regulations comes as a side effect, then everyone benefits. It is up to the industry to adopt best practice as standard practice.
The key findings of the research were:
• When it comes to the renewal of an insurance policy, most consumers (62 percent) will invest the time to search for the best price from a range of providers
• However, despite this desire to “know what good looks like” consumers don’t like searching for a new policy. When asked to describe what best describes the process of hunting for a new policy at renewal, 30% of all GB adults with insurance surveyed said “frustrating” and 16 percent said it was “time-wasting”. Only nine percent described the process as “satisfying”However, to avoid searching for new policies, there was a positive response for creative solutions by insurers:
• 73 percent of consumers said being given a quote comparison with equivalent insurers in the market to assure them the quote is reasonable would encourage them to renew with their current insurance provider.
• Sixty-nine percent said being offered a reasonable, fixed, three-year deal on insurance premiums with no increase in cost would make them likely to stay
• Making the renewal process simpler and personalised also ranked highly with over half of consumers (60 percent) saying this would be likely to make them renew with their existing insurer
The heat is on for insurance companies – if you’re not implementing the Financial Conduct Authority’s (FCA) rules then you are likely to see action taken against you. The regulator has this morning warned it will take action against general insurance firms that “fail to properly implement rules introduced to increase transparency and encourage shopping around at renewal time.” The warning refers to its rules, introduced in April last year, that outlined firms must clearly show the insurance premium a customer paid last year alongside its renewal premium. It also means firms must show a straightforward message that encourages customers to shop around.