Insurers must address dual pricing to retain trust

Insurance companies need to address the issue of dual pricing in order to retain their customers. This is according to the latest Chartered Insurance Institute public trust index.

The study surveyed in October 1,000 consumers about their experience of motor, buildings and travel insurance and 1,000 small and medium-sized businesses about motor, buildings and employers’ liability policies.

The biggest opportunity for insurers to improve their performance relates to customer loyalty. This was ranked as the most important driver in selecting a provider, ahead of price, confidence, ease of use, protection and relationship.

Chief executive officer of the CII, Sian Fisher said: “Insurers are doing many things well and command a strong level of overall customer satisfaction.

“However, despite the efforts of regulators, trade associations and many individual insurance companies, including the ABI and BIBA’s ‘Guiding Principles and Action Points for General Insurance Pricing’ industry led initiative, more work needs to be done in the area of renewal pricing,” she added. “Having an ongoing measure of how insurers are performing against customer expectations allows our members to build up a detailed picture of how they can increase public trust.

“Through our trust tool, which is a database of 50 statements about the things that consumers have told us are important features of insurance, they are telling us the factors that would increase their trust in the renewal process.”

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