Customer Satisfaction

Meeting Modern Customer Demands: Communication, Speed, and Accuracy

Key Findings

78% of Australian insurers rate clarity of communication as the highest service quality practice for customer satisfaction, followed by speed of service (50%).
Claim processing accuracy is identified by 80% of Australian insurers as the most vital metric of claim management performance.
To deliver superior service quality, 70% of Australian insurers are improving communication and responsiveness with clients, and 58% are investing in advanced technology to streamline processes.
Globally, 55% of insurers emphasise training and development for staff as key to achieving customer service excellence.

Clarity, speed and convenience matter most to meet modern demands

The role of insurance is evolving beyond traditional risk coverage and claim reimbursement. Customers now expect insurers to actively help reduce and prevent risks, offer convenient solutions, and deliver personalised experiences. A 2023 survey of over 28,000 consumers across 14 countries highlighted this rising expectation for insurers to excel beyond functional basics, emphasising the importance of ethics, providing access and reducing anxiety.^[¹^] This shift in expectations is driven by recent challenges of weather extremities, the pandemic, ageing populations, and technological disruptions, reshaping the insurers’ approach towards service quality and improving customer satisfaction.

In Australia, insurers are facing the pressure to redefine their role in addressing customer needs. The focus is gradually moving from merely compensating losses to proactively meeting customer demands for convenience at any time and place. More than three-quarters of Australian insurers (78%) believe clarity of communication is the highest-rated service quality practice leading to customer satisfaction, followed by speed of service (50%). Global insurers report a similar sentiment with clarity of communication (69%) and speed of service (65%), followed closely by the need for consistency and reliability (54%), reflecting the industry's potential to champion long-term solutions of changing customer attitudes.

Claims accuracy and resolution speed drive loyalty and success

Australian insurers are grappling with the challenges posed by increasingly prolonged and frequent CAT events. At the same time, they are navigating financial pressures stemming from constrained capital resources due to high interest rates. Insurers are also required to respond to rising regulations on claims handling while meeting community expectations, as mentioned in the recent ASIC report on claims handling of home insurance^[²^]. This underscores the effectiveness of claims management serving as a critical measure for insurers to fulfil customer expectations, strengthen trust and foster loyalty.

Our survey results reveal that 80% of Australian insurers identify claims processing accuracy as the most vital performance metric, surpassing the global average of 77%. Claims resolution speed emerges as the second key metric, valued by 64% of global respondents and 52% in Australia.

“Placing priorities on claims processing accuracy and speed plays a pivotal role in shaping customer experience, driving satisfaction, and securing long-term engagement. As the industry faces mounting pressures from climate events, economic factors and heightened scrutiny, robust claims management processes will remain a cornerstone for long-term resilience and competitive advantage. Embracing technology and fostering a customer-centric approach will be key to meeting these demands and securing future growth.”

Prioritising communication and technology for better service

Effective communication and the integration of advanced technologies are emerging as pivotal strategies to enhance service quality and meet evolving customer expectations. Across the industry, insurers are dedicating resources to improving client responsiveness and streamlining processes. In Australia, 70% of insurers highlight communication and responsiveness as key focus areas, while 58% are adopting advanced technologies to optimise operations.

Globally, these priorities align, with 65% of insurers identifying technology investments as critical to delivering superior service quality. Innovative tools such as AI-driven chatbots, real-time response systems, and tailored communication strategies are being adopted to ensure clarity, reliability, and accessibility. These advancements not only address operational challenges but also enable insurers to provide personalised, proactive service experiences that cater to diverse customer needs. In addition to leveraging technology, 55% of global insurers are also placing a focus on staff training and development (55%).

Partnering for service excellence

In today’s customer-centric market, meeting rising expectations requires insurers to address service gaps, improve claims accuracy, and enhance operational efficiency. This environment calls for a collaborative approach, where insurers can rely on trusted partners to navigate challenges and drive improvements in service delivery.

A partner with deep expertise in claims management and a commitment to continuous improvement can play a pivotal role in refining processes, leveraging advanced technology, and fostering better outcomes for customers. By focusing on clarity, speed and reliability, such partnerships can help insurers build trust, enhance customer satisfaction, and maintain a competitive edge in a rapidly evolving landscape.

^{[1] Henrik Naujoks, et al. “}^{Customer Behavior and Loyalty in Insurance: Global Edition 2023}^{”, Bain & Company Report, 16 Feb 2023}
^{[2] “}^{ASIC review finds insurers can and should improve claims handling}^{”, Australian Securities & Investments Commission (ASIC), Media Release, 16 Aug 2023}