Differentiating at the right journey touchpoints is the key to value creation
Pre - purchase
Purchase
Post - purchase
Customers appreciate a well-designed website interface that simplifies understanding and facilitates seamless information assessment
Q1 - Was I able to assess the policy options and make an informed decision?
Voice of Customer insights
Customers cited the relevance of customer reviews and testimonials as a crucial parameter while making the decision –
- “Not much research was needed because whenever I spoke to my colleagues and people around me, they also suggested Brand A as a good company.”
Customers compare and assess various policies during the pre-purchase stage –
- “For term insurance plans and market-linked offerings, Brand B and Brand C were doing a good job in terms of interest rates. However, Brand C's rates were a little lower.”
Customers expressed the need for easy understanding of the policy benefits before purchase –
- “The terms and conditions should be only 3-4 pages. It becomes hard to keep track of them. So, minimise and explain them clearly, or provide a small video format.”
Customers prioritise strong relationship management when purchasing policies from bank-based insurers
Q2 - How was my experience purchasing the policy?
Voice of Customer insights
Customers value policy customisation and flexibility along with assistance from the agent/ sales staff –
- “Based on my income, requirements, and planning for the next 10 years, if I discuss all of these with an agent, they will definitely come up with a customised plan for me. So, yes, the private sector companies do a good job in terms of customising the plans for me.”
- “The process with Brand D was relatively simple. The paperwork was mostly done by him. I just had to provide my ID proofs and fill out some forms. He helped me with the form filling, so it was easy.”
- “I think the other companies' customer service is really good. Catching hold of them is very easy, and whenever I've spoken to the executives, they were quite professional. So, I haven't had a problem as such in terms of customer service.”
Minimising efforts at customer’s end is crucial for continuous engagement with the brand and renewals
Q3 - Is it convenient for me to manage and avail the benefits of the policy?
Voice of Customer insights
Ease of premium payments can positively impact customer experience –
- “To a certain extent, I'm happy with Brand A. I wouldn't argue much about the benefits as they are comparatively a little less than what the private sectors are providing. But it's okay. I'm pretty satisfied with the security, making the commitment and the overall ease of paying premiums investments, tension-free investments, and the ease of paying the premiums. Overall, I'm quite satisfied with what Brand A has done.”
When encountering any issues, customers expect the service provider to be accountable for resolution support –
- “I had purchased health insurance from Brand E through policy aggregator website. There was an issue with the insured amount, and when I contacted Brand E’s customer service, they told me to resolve it through the policy aggregator. It took more time because I purchased it through a middleman.”
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
The segment has shifted towards a customer-centric approach, which is reflected as high fulfillment across prioritised attributes -
- Insurers are offering additional services, such as wellness programs and financial planning tools, to enhance customer satisfaction
- Insurers have been innovating with new products and solutions that address emerging customer needs, such as flexible policies and coverage for modern risks
- Insurers emphasise empathetic interactions and strong relationship management to build long-term customer loyalty
Digital transformation is another key trend, where the insurance segment is advancing rapidly –
- Insurers are increasingly adopting digital platforms to offer seamless experiences, including online policy purchases, claims processing, and customer support
- Insurers are also providing consistent and integrated experiences across multiple channels, such as apps, websites, and physical branches
Customer retention is high, with 55 percent ambassadors; Customer satisfaction is driven by trusted brand name and service quality
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.
55 percent of the customer base are ambassadors as the insurer meets their expectations on -
- A seamless and intuitive online interface ensures convenience, making the renewal process effortless and engaging for 8 percent of the customers
However, 40 percent of the consumers are still likely to substitute the insurance provider –
- 9 percent of customers may switch insurance providers if negative market sentiment diminishes their confidence in the brand's reliability and reputation
- Poor service quality or unresponsive interactions can lead 8 percent of customers to seek providers who prioritize attentiveness and professionalism
Segment is delivering on the experience requirement at 81/100; ‘Expectation’ being the leading pillar
Performance across the KPMG Six pillars of Customer Experience (Weightage of the pillar to the overall experience requirement)
‘Expectation’ (22 percent), and ‘Integrity’ (18 percent) are the key pillars of experience influencing customer’s purchase decision
Insurers are meeting customer expectations by –
- Maintaining transparency in policy terms, pricing, and claims processes
- Ensuring competitive pricing and offering value-added services like health programs or financial planning tools
- Simplifying policy applications, renewals, and claims processing to save customers' time and effort
- Creating consistent and integrated experiences across various customer touchpoints
Insurers can improve performance on the ‘Resolution’ pillar by –
- Offering resolution services across multiple platforms, including chat, email, phone, and social media
- Monitoring customer feedback and data insights to address potential problems before they escalate
- Investing in technology to automate customer support
- Setting accountability on the team to drive timely resolutions
Willingness to pay more is high on ‘Expectation’ pillar and associated attributes such as range of policies and market presence
Top experience attributes influencing the customer’s willingness to pay
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Consistent delivery on relevant policies, with a range of offerings catering to all customer types
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Helpful service and support from sales agents across online/ offline channels
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Consistent availability of the insurance provider covering a range of pin codes
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Offerings by a trusted insurance provider which is well recommended within the social circle
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Delivery on promised value across services for the money paid
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 aspects translate from personalised convenience, omnichannel browsing or even exclusivity in customer support.
Customer preferences play a significant role in determining their willingness to pay more for life insurance policies
Below are the key attributes that influenced this decision -
- 32 percent of customers are willing to pay the most for insurance providers that offer a diverse range of policies catering to different needs.
- 28 percent of customers are inclined to pay more for insurers who deliver exceptional service through skilled agents and sales staff.
- 26 percent of customers prefer providers with a robust presence in the market. A reputable and well-established brand assures customers of a sense of stability, reliability, and credibility.
- Another 26 percent of customers place a high value on the trust associated with a brand.
Our customer experience (CX) insights across sectors
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