Thursday, 23 February, 2012
Bloody Meerkats and an endless stream of unimaginative and downright infuriating caricatures sums up the “bounded creativity” of an industry whose idea of innovation has been dulled by years of squeezing every ounce of customer value out of products and processes to feed its insatiable appetite for revenue…and, hopefully, underwriting profit!
In particular, the Personal Lines market is so deep in a rut of its own creation that, for all any of us know, this meerkat (I will concede they are cute!) may be a scout sent to see what the terrain beyond the rut looks like.
Well here it is: how could anyone in their right mind trust an industry, whose best interests are served by attracting customers with a “good” risk profile, rewarding their profitability and loyalty BUT insists on spending outrageous amounts on scattergun marketing and incentivising disloyalty, then tries to claw back costs by compromising the integrity of cover and service.
In a recent survey of 400 nationally represented insurance buyers, a clear message has been given that despite all the advertising and hype, there remains a serious lack of trust in insurance providers.
- Just under 73% believe that insurance providers make the terms and conditions in their policies deliberately complicated.
- Half believe claims are never paid out fairly.
- A third believe that insurance providers expect them to lie about a claim.
Looking at the survey it cannot be disputed that price is a real determinant of converting an insurance sale, with 72% of the respondents attesting to this fact.
However we need to look a bit more deeply. We questioned further about what factors are the most important when taking out or renewing a policy, their replies were clear and unambiguous. 89% stated that they look to their provider to be trustworthy and 79% said that it is important for insurance advisors to have professional qualifications related to insurance.