Customer Satisfaction

From Claims to Communication: Leveraging Technology to Deliver Service Excellence

Key Findings

Clarity of communication (78%), speed of service (62%), and consistency and reliability (62%) are the top three factors for achieving higher customer satisfaction among UK insurers.
73% of UK insurers prioritise claims processing accuracy and customer satisfaction scores as key metrics for evaluating claims management performance.
Nearly three-quarters of UK insurers invest in advanced technology, such as AI and automation, to deliver superior service quality.
69% of UK insurers focus on customer feedback and continuous improvement as the second key strategy to achieving customer service excellence.

Aligning clarity, speed, and reliability to elevate customer experience

In the current business environment, customer satisfaction is more than a mere metric: it is a key driver of overall business performance. The July 2024 UK Customer Satisfaction Index survey showed that 56% of customers believe that their satisfaction depends on whether an organisation understands and cares about their personal needs.^[¹^] As a result, insurers are working to close service gaps in sales and claims to deliver a seamless customer experience.

Additionally, insurers are diving deep into data analytics to tailor experiences as consumers are keen to adopt enhanced product personalisation and even share added personal data to attain that benefit.^[^2] According to our survey findings, UK insurers rank clarity of communication (78%), speed of service (62%) and consistency and reliability (62%) as the top factors for delivering a positive customer experience, a sentiment similar to their global counterparts. This showcases the growing emphasis on prioritising core service values to elevate customer trust and fulfilment in order to meet evolving demands.

In an era where customer trust can make or break a company’s reputation, insurers are stepping up to meet the challenge, reflecting a commitment to building long-term trust and loyalty in a highly competitive landscape.

Optimising claims excellence through accuracy and satisfaction scores

In a fast-paced environment where customers expect quick responses and efficient resolutions to their queries and claims, insurers strongly emphasise speed and accuracy as key pillars of delivering exceptional customer satisfaction. According to our survey, 77% of global and 73% of UK insurers prioritise claims processing accuracy as the most critical metric for measuring performance. The same percentage of UK respondents (73%) also identify customer satisfaction scores as the next key metric for evaluating claims performance. In comparison, global insurers rank claim resolution time (64%) as the second most important quality indicator.

Moreover, claims handlers identify faster claims resolution and automation of the claims process as essential factors that could improve customer satisfaction.^[3] Implementing such approaches will enhance trust and loyalty and drive operational efficiency, positioning insurers to gain a competitive edge in a customer-driven market.

Leveraging technology and feedback: Key drivers to boost service excellence

The rise of digital adoption and evolving technology is reshaping consumer buying habits and expectations, driving demand for more flexible and transparent insurance products. As such, insurers are increasingly leveraging investments in advanced technology to streamline processes and enhance efficiency. Moreover, UK insurers are experimenting with generative AI to address practical questions and assess risks.^[4]

Notably, nearly three-quarters of UK insurers are investing in advanced technology, such as AI and automation, to streamline processes and enhance service delivery, compared to 65% of global respondents. Insurers in the UK also focus on customer feedback and continuous improvement, with 69% identifying it as the second-best strategy for delivering superior service quality. This proactive approach highlights that insurers can refine their offerings by prioritising customer-centric strategies while cultivating a feedback-driven culture to ensure more responsive services. Globally, however, 55% of insurers view enhancing staff training and development as the second-best metric for delivering exceptional service, followed by improving client communication and responsiveness.

Collaborating for excellence in service

Increasing and rapidly changing customer expectations demand closing service gaps, refining claims accuracy, and boosting operational efficiency for insurers. This requires a cooperative approach, where insurers engage with reliable partners who can help navigate challenges and enhance service delivery. By collaborating with a specialist in claims management, insurers can optimise processes, incorporate advanced technologies, and drive superior customer outcomes. Ultimately, these partnerships will enable insurers to foster customer trust, improve satisfaction, and maintain a strong position in this continuously shifting market.

^[1]“^{UK Customer Satisfaction Index (UKCSI) – July 2024: Key Findings}^{”, The Institute of Customer Service, 08 July 2024.}
^[2]“^{Hyper-Personalisation: A New Era Of Experience For Insurance Customers}^{”, CAPCO, 13 June 2024.}
^[3]“^{Customer Experience: The Claim Handler’s Perspective}^{”, Sprout.AI, PDF file, 17 Apr 2024.}
^[4]“^{Generative AI: Value creation for UK insurers}^{”, Deloitte, 27 Oct 2024.}