Business Wire IndiaKantar, the world’s leading marketing data, insights and consulting company, today launched its Annual Life Insurance Customer Satisfaction and Loyalty Report 2019. The study shows that Customer loyalty has seen an increase over the last year (69% in 2018 to 71% in 2019) led by an improvement in the customer experience though there is a limited differentiation between brands on products and service experiences offered by them. Key Findings
- Trustworthiness and accessibility emerge as key drivers to gain customer loyalty
- While life insurance is bought primarily as a savings instrument and to provide financial support to the family in case of death, there is a rise in the proportion of people buying life insurance as a tax saving instrument: 2.3X increase compared to 2012 (similar proportion across age groups)
- 1 in 5 of life insurance customers are unsure about how much life insurance cover is needed. This is an opportunity for insurance brands to create touchpoints for educating their customers.
- Younger customers are more loyal than older customers and are 1.2X times more financially aware.
- Digital/ electronic premium payment has risen 1.3X over 2018 and insurance brand owned websites record a 1.9X rise over 2018. Even though consumer behaviour in digital adoption has shown a marked development, it is still not a replacement for physical interactions – while purchasing a policy or while seeking service/ issue resolutions.
- This year’s report also delves into women as a segment
Top 10 brands for Customer loyalty *
| Rank | INSURER | Truly Loyal% |
| #1 | LIC | 78 |
| #2 | SBI LIFE | 77 |
| Joint #3 | HDFC Life, MAX Life | 75 |
| Joint #5 | Bajaj Allianz., Birla Sun Life, ICICI Prudential, Kotak Life Insurance |
72 |
| #9 | Tata AIA | 69 |
| #10 | Reliance, Nippon Life Insurance | 68 |
*Figures above reflect proportion of Truly Loyal % for each player. In case of same Truly Loyal %, the brands have been arranged in alphabetical order Commenting on the 2019 edition of Annual Life Insurance Customer Satisfaction and Loyalty Report, Piyali Konar, Executive Vice President, Insights Division, Kantar said, “With the changing macroeconomic landscape, life insurance companies are struggling to remain differentiated in the minds of customers. If we compare the findings of our syndicated life insurance study from a few years back, the loyalty among the LIC customers were around 35-40 percentage points higher than the other private insurance players. Today, we see the gap vanishing and brands are no longer differentiated from each other. Customers are loyal to multiple companies at the same time and may shift to an alternate brand when they plan to buy a new policy. Thus, developing targeted products, attracting the right customers for those products, and keeping them satisfied are keys to survival.” The 9th round of the Insurance India syndicated report offers significant insights into the relationship between customers and insurers in the life insurance space. It helps organizations understand customer’s expectations from an insurance service provider vis-à-vis current levels of experience, to what extent the customer expectations have been met, and assess the customer loyalty to their brand. The study is based on 6500+ responses across 13 brands and more than 15 cities across India.
Source: Businesswire