Government-owned non-life insurance companies fare better in customer satisfaction of motor insurance policyholders than their private peers. New India Assurance was ranked the highest in satisfying auto insurance customers followed by Oriental insurance and ICICI Lombard, according to a study done by JD Power Asia Pacific.
The 2011 India Auto Insurance Customer Satisfaction Index Study in its third year examined motor insurance policyholder’s experience with their insurer on six factors: interaction, claims, product/policy offerings, renewal/purchase process, billing and payment process, and premium/price for coverage offered.
It was based on responses from 5,284 customers in 20 cities across India who renewed or purchased an auto policy between January 2010 and April 2011 and had between 2.5 and 3.5 years of vehicle ownership experience. The study included 15 non-life insurance companies (11 private and the four government-owned public insurers).
The study found that although satisfaction with public insurers, as a whole remained higher than that of private insurers in 2011, the satisfaction level with public insurers decreased by 17 points from 2010, while satisfaction with private insurers improved marginally by three points. However, effective communication with customers remained a concern for both public and private insurers.
New India Assurance ranked highest in 2011 achieving a score of 804 out of 1000 point scale and performing particularly well in the renewal/purchase process factor followed by Oriental Insurance which achieved a score of 802 and performed well in the billing and payment process and renewal/purchase process. On the third place was ICICI Lombard with a score of 801.
The study however said that the overall customer satisfaction with insurance companies has declined from last year on the interaction parameter. Within this factor, satisfaction with branch office interactions declined the most, followed by interactions with independent agents and brokers.
The proportion of customers visiting insurer’s branch office nearly doubled in 2011 compared with 2010. In 2011, 46 per cent of customers indicated renewing or purchasing their policies from the branch offices. In contrast, fewer than one-fourth of customers in 2010 (24 per cent) had said the same.
“Therefore, it becomes particularly important for insurers to ensure better customer management at branch offices, especially in terms of understanding needs and requirements, providing clear explanations of policy coverage, courtesy and friendliness,” said Mohit Arora, executive director at JD Power Asia Pacific.
The study found wide variation between regions in the proportion of customers who filed claims. Approximately one-fourth of customers in the south and east regions filed a claim with their insurer in 2011, compared with less than 15 per cent of customers in the north and west regions.
Claims satisfaction was highest among customers in the north region. Customer satisfaction with insurance providers has an impact on their intent to renew their current policies and to purchase from the same insurer for their next vehicle. Read More
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