Celent Says

Growth, Growth, Growth and Throw Out the Customer Service While You're At It!

Catherine Stagg-Macey
Insurance Experts' Forum, February 23, 2011

Perhaps it’s the dark, gray winter skies that are making me curmudgeonly, but I’m having one of those weeks, and at the centre of my frustration are the motor insurers in the United Kingdom.

Changing cars has resulted in having to change car insurers or pay three times my current premium. I’d happily stay with the current insurer, give or take a few percentage points, but having to pay three times over the odds helps me overcome my inertia to change. I also lost the no claims bonus as I’d canceled policy four weeks before the end of term date. (Why doesn’t the no claims discount follow policyholder not policy?) I lost count of the minutes listening to awful muzak in a call center queue. One call center company had to pass me on to another section, which was then unavailable and I was told to call back. Remind me who the customer is here?

And of all the insurers I was dealing with, not one offered a customer portal where I could change my details or cancel my policy. That would have put the power back into my hands as the consumer and would have reduced the pressure on their call centres.

All this speaks to a larger trend in the UK: Our new CIO report for UK insurers makes the point that 2011 is all about growth. Terrific for the shareholders but increasingly a poor deal for the consumer.

Is there great customer service out there? I am sure there is. I’ve even heard about it. But for middle-income, middle-England buying personal lines insurance, it’s hard to find. The great economic theories espouse that poorly performing business will be punished by customers moving their money for better deals. But in this case, what choice does the consumer have?

As insurers chase down growth and continue to invest in the front office (see our report), existing policyholders are left with inflexible service and often brutal customer experience. 

This blog has been reprinted with permission from Celent.

Catherine Stagg-Macey is a senior analyst in Celent's insurance practice, and can be reached at cstagg-macey@celent.com.

Readers are encouraged to respond to Catherine using the “Add Your Comments” box below.

The opinions of bloggers on www.insurancenetworking.com do not necessarily reflect those of Insurance Networking News.

Where might this all end? What are the factors that could change the state of play? These are great questions for which I have no answer. I’ve sat on conference panels with greater minds than mine, and they shake their heads over the state of personal lines. CEO’s bemoan the power of the aggregator and lack of customer loyalty. As a customer, this is my lament for customer service. I hope someone can prove me wrong.

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments...

Already Registered?

If you have already registered to Insurance Networking News, please use the form below to login. When completed you will immeditely be directed to post a comment.

Forgot your password?

Not Registered?

You must be registered to post a comment. Click here to register.

Blog Archive

Wearables Poised to Reshape Insurer-Insured Relationship

Boosted by the impending release of the Apple Watch, wearable devices have received a fair amount of attention recently – and with good reason. This emergent technology has the potential to alter the way the health insurance industry operates on a fundamental level.

Core Transformation – The Ultimate Balancing Act

The core transformation journey requires companies to shift from reactive to proactive business models, incorporating maturing and emerging technologies, customizing and personalizing products, and accelerating speed to market while providing improved customer service.

Despite Valiant Efforts, Insurers' Consumer Ratings Drop

Insurers also are confronting waves of disruptive changes, including big data analytics, an aging population, ongoing economic uncertainty and the growing frequency and severity of natural disasters, which threaten to challenge and undermine businesses.

Why You Can't Take a Wrecking Ball to Your Legacy System

If you think of enterprises like collections of neighborhoods that need to be nurtured, you quickly see that architecture, not obliteration, is the key.

The Apple Bounce: Are Wearables Truly this Big?

I just don’t believe it; only 720,000 Androidwear watches were sold in 2014. Apple has been amazingly successful in so many markets. Were they always first? No, a lot of products before. Were they always best? Again, no, superior devices have fallen.

Ten Stats About Social, Mobile, Analytics, Big Data, Cloud and Digital

Deployment rates have grown in the year since Novarica’s last study on these topics.