Differentiating at the right journey touchpoints is the key to value creation
Pre - purchase
Purchase
Post - purchase
Customers frequently compare policies on aggregator websites, making it a key opportunity for insurers to stand out amid variability
Q1 - Was I able to assess the policy options and make an informed decision?
Voice of Customer insights
Customers assess relevant reviews and testimonials across different policies before deciding on one -
- “I checked insurance aggregator websites and with friends. Brand X has a good claim ratio and faster processing times.”
- “I compared the policies on insurance aggregator websites. Brand Y offered the best premium and services.”
Ease of understanding policy benefits and T&C can improve customer experience significantly –
- “Everything (Terms and Conditions, payment plans, and other details) was clearly explained, including the no-claim bonus and coverage details.”
The segment leader - a new age brand is performing well above average on all parameters, indicating signs of market disruption by new age brands
Q2 - How was my experience purchasing the policy?
Voice of Customer insights
Customers look for policy customisation and easy KYC during purchase –
- “If insurers can offer customisation options, it would be very good. You can add or remove features as per your requirement. This customisation option will build customer confidence and loyalty because the brand is not imposing anything.”
- “The KYC process was done instantly online with my PAN number.”
Quote generation and payments exhibit high variance in ratings, indicating a potential for brand differentiation –
- “The payment part was the best for me because it was hassle-free. I entered my UPI ID, received an OTP, and made the payment. I didn't have to wait. Within seconds, my payment was done, and my policy was generated.”
Building brand trust and reducing customer effort are essential for maintaining ongoing engagement with the brand after policy purchase
Q3 - Is it convenient for me to manage and avail the benefits of the policy?
Voice of Customer insights
Post-purchase, customers value a seamless claim process –
- “My car insurance has been with Brand A for a couple of years without any issues. But I had problems with my two-wheeler insurance last year when I made a claim. They held my scooter for fifteen days and created issues. So, I switched to Brand B.”
- “If a brand treats its customers well, it always grows. If they think every customer is a fraud, the brand will not succeed. Private companies are successful because of good claim ratios. Government companies offer lower premiums, but often fail to provide claims, which is problematic.”
Going the extra mile can convert a negative experience into a positive one –
- “An advisor from Brand B once helped me get my backlights replaced by putting in extra effort. This was really helpful.”
Striking the right balance between delighting the customer and the cost of servicing them is key to maximising value
Performance of the segment on the prioritised experience attributes
Personalised offerings and embedded insurance are the new additions to the insurance portfolio -
- Insurers are leveraging data analytics and AI to offer tailored policies that meet individual customer needs
- Insurance is being integrated into broader purchases, such as travel bookings or e-commerce transactions, making it more accessible
The segment is witnessing an increased focus on proactive risk management -
- Insurers are offering tools and services to help customers prevent losses, such as IoT devices for home security or health monitoring
The insurance segment is now competing with traditional D2C sectors like retail to deliver a superior user experience. Customers seek -
- User-friendly websites and intuitive navigation, faster loading speeds, and clear content presentation
- Automated reminders, one-click renewals on apps/websites, and incentives like loyalty rewards to encourage timely renewals
Loyalty is not influenced by satisfaction; 48 percent of customers will switch providers based on market sentiment and poor customer support
Customer segmentation based on satisfaction and loyalty
(percentage share of respondents)
Customer retention is dependent on their satisfaction with the brand and their tendency to explore alternatives. ‘Ambassadors’ are highly satisfied customers who will keep contributing to the brand’s success. ‘Switchers’ on the other hand, are always seeking better options. ‘Critics’ as the third segment, actively convey negative feedback about the brand, if not satisfied. Finally, ‘Dependents’ are customers who remain loyal despite low satisfaction due to lack of alternatives in the market.
51 percent of the customer base are strong ambassadors of their current insurer –
- Transparent communication ensures a clear understanding of policies, coverage, and claims processes, making 8 percent of customers feel valued and confident in recommending the insurer to others
However, 48 percent of the customers are likely to substitute their insurance provider, based on -
- 9 percent of the customers lose trust and seek alternatives if there is a negative public perception or bad press surrounding the brand
- Lack of responsiveness and empathy, or unresolved issues in customer service can frustrate customers and lead to an 8 percent dropout
- 9 percent may opt for an alternate provider if customers feel their current insurance policy doesn't provide sufficient coverage or benefits compared to its cost
The segment exhibits low fulfilment at 78/100, with potential for improvement on three of the six pillars
Performance across the KPMG Six pillars of Customer Experience
(Weightage of the pillars to the overall experience requirements)
‘Integrity’ (22 percent) and ‘Expectation’ (19 percent) are the key pillars of experience while making a purchase decision.
Insurers can exhibit ‘Integrity’ across their operations by -
- Maintaining transparency in all communications, clearly outlining policy terms and exclusions.
- Implementing robust data protection measures to safeguard customer information.
- Establishing mechanisms for internal audits and ethical checks to ensure employees operate with integrity.
Insurers can minimise customers ‘Time and Effort’ by –
- Enabling self-service for renewals, updates, and endorsements via intuitive online platforms.
- Using AI-powered chatbots for 24/7 customer support and prompt query resolution.
- Sending proactive alerts for payments, renewals, and claim updates.
- Simplifying claims processes, often supported by AI, to improve customer trust and loyalty.
The segment is driving profitability from its loyal customers, with a high willingness to pay for a trusted brand name and seamless support
Top experience attributes influencing the customer’s willingness to pay
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Complete delivery on the expectations from product for the money paid
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Offerings by a trusted insurance provider which is well recommended within social circle
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Helpful service and support from sales agent across online/ offline channels
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Easy to use customer support with responsive and good resolution
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Hassle- free policy renewables with minimum intervention required
An individual’s willingness to pay a premium is driven by immediate needs. As today’s customer evolves, the focal aspects of premiumisation has shifted from functionality to experience. These aspect may translate as personalised convenience, omnichannel browsing or even exclusivity in customer support.
Trustworthiness stands as the most critical factor shaping a customer's willingness to allocate a larger share of their wallet to an insurer.
- 31 percent of customers are willing to pay more for a brand they perceive as reliable and established.
Seamless experiences drive willingness to pay for general insurance customers
- 28 percent of customers are drawn to pay a premium for agents or sales staff who deliver a seamless buying experience.
- 28 percent would pay more for quality customer support, ensuring effective and empathetic issue resolutions.
- Another 26 percent of customers want a simplified and hassle-free renewal process, increasing their willingness to pay more for the convenience offered.
Our customer experience (CX) insights across sectors
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