Although 62% of consumers will invest time in searching for a better insurance deal at the point of renewal, only 9% feel the process is “satisfying”
Consumers do not like searching for a new insurance policy and would like to see more innovative solutions by insurers at the point of renewal, a YouGov survey of 1,600 UK adults has revealed.
The survey, commissioned by software provider Pegasystems, showed that almost three quarters (73%) of consumers would like to be given a quote comparison with equivalent insurers in the market at the point of renewal to assure them their original provider is giving them a fair deal. This would encourage them to stick with their current provider.
Of those surveyed, 69% said that being offered a reasonable, fixed, three-year deal on insurance premiums with no fixed costs would make them more likely to stay with their insurer.
Over half (60%) of consumers felt that making the renewals process simpler would make them more likely to renew with the same company.
Although more than half (62%) of people will look around when it comes to renewal time, less than a tenth (9%) described this as “satisfying”. However, 30% said the process was “frustrating”, while 16% thought it was “time-wasting”.
Commenting on the findings, Tony Tarquini, European insurance director, Pegasystems said: “The clear message from consumers is they 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 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.”
He continued, “Re-imagining renewals to benefit everyone requires new digital and agile operating models, based on technology which can personalise the balance between making money and giving real long-term value to the customer. At the heart of this technology must be AI and real-time decision making, pre-emptively helping customers to make good, informed decisions about where to place their business.”
Tarquini concluded: “By doing this, insurers can break the vicious cycle forced on them by “new customers only” pricing, reward loyalty and kill off the loyalty tax stigma.”