The insurance industry has had a problem with its reputation for a long time.
It is often criticised for the way it handles claims, either for not paying out on valid claims or, when it does, making the process unnecessarily complex and convoluted.
This is not a new problem for the industry, but the current regulatory landscape means that how the industry operates on claims and customer outcomes is coming under increased scrutiny from the FCA.
Consumer Duty and Fair Value assessments are just two of the measures the regulator has introduced to the UKGI marketplace in recent years, and it is against this backdrop that we are set to publish the 2023 edition of the Insurance DataLab Customer Experience Report.
The headline finding is that customer experience has not improved, in fact the average CX Performance Rating has dropped slightly since we last conducted this research, falling to 68% from 69% last year.
This is partly due to a change in methodology, but there are also some underlying trends contributing to this – and these will be discussed both in the report and in our upcoming webinar, CX in the Age of Consumer Duty, taking place on 12 December at 11am. Everyone who registers will be sent a free digital copy of the report.
The new-and-improved methodology for 2023 sees the introduction of claims pay-out rates into our claims analysis, taken from the FCA value measures data – data that is now available on our market intelligence platform.
The inclusion of the claims pay-out metric has, of course, affected scores and is one of the contributing factors that has led to an 11 percentage point drop in the average claims rating, which fell to 72% – down from 83% a year earlier.
The methodology for the other three pillars – complaints, customer satisfaction and transparency – remain the same, although it is only transparency that has shown signs of improvement.
But it is not all doom and gloom, and as always, we have once again recognised the best performers in the market with an Insurance DataLab CX Gold Award, with all six award winners set to be revealed at next week’s webinar – you can register for free here.