One of my must reads during the Holidays was the latest Satisfaction-survey on the Insurance industry. The annual survey, Svenskt Kvalitetsindex, is based on input from 20.000 Insurance customers and hence the ultimate Jury on the performance of the industry.
The chart below presents the development for the different segments in the industry, i.e. P & C Private / Corporate, Car Insurance, Pension Private / Corporate and Insurance Advisors:
As you can see, the overall Satisfaction Index is the second highest since 2003 but there are several observations that deserve some reflection from the industry and the individual players. You are not entirely acquitted and off the hook if…
- …you represent a life insurance company with a drop in the satisfaction levels from last year. And do not try to hide behind a bearish market. According to the survey institute, the customers rate your product quality higher than your service quality.
- …you cannot meet the customer’s expectations. It will eventually hurt the loyalty as in the case of SPP that has half the loyalty index compared to peers. Customers stress that they expect good advice and information that is easy to grasp.
- …you represent P & C companies with clients that have had insurance claims during the period and now show a significant lower satisfaction than peers without claims. You have missed out on your moment of truth and chance to build life time loyalty.
But let us not forget the heroes that deserve recognition. The Car Insurance companies have increased their satisfaction levels and are almost on par with the other segments. In addition, Skandia has also bounced back to the same level as the peers. It really proves the truth in the old saying “It takes years to build up trust, but only seconds to destroy it. “ It took Skandia seven years to restore the trust after the bonus circus in year 2004.
I see a pattern when looking at the stars in each segment. I will get back to the subject on my next blog entry where I will look at the satisfaction levels with the banks, but I would really appreciate your input on this minimal survey or quiz: what is the common denominator between Handelsbanken Liv (Life Insurance Private), Länsförsäkringar (Life Insurance – Corporate) and Dina Försäkringar (P & C).