Customers expect more from insurers, bankers

Banks and insurance firms are up against a demanding, rapidly evolving clientele: Kantar IMRB survey

Until a few years ago, insurance companies and banks in India had a fairly firm grip on what their customers wanted. If it were a bank, customers were big on the number of branches it had, what was its reputation in the market and so on. And for insurance companies, it was largely about recommendations from friends and family. However, a number of surveys conducted to gauge loyalty, performance and price considerations in financial products during 2016 showed that times have changed significantly and companies need a whole new set of image boosters to lure, retain and engage their customers. 

The Kantar IMRB survey titled Customers aren’t happily ever after says that be it banking or the insurance sector, consumers now are more aware of what they are buying than they were, say a few years ago. The availability of more options, a more customer friendly approach by companies and better distribution infrastructure has led to a more evolved buying experience. And that has, in turn, raised the bar for banking and insurance products.

Customers are also more likely to compare products between sectors, expecting their insurers to be more like a travel company when it comes to service, for instance. “Brands need to realise that customer expectations are no longer bound to an industry and today they are choosing you for more than just your product,” said Piyali Konar Chatterjee, executive vice president, Kantar IMRB & Stakeholder Loyalty Expert

Services have become one of the mainstays for companies. But there is a need to move from effort to effortless service, which also takes into account timely communication, fast resolution, timely support and instant updates on transactions, the report says. “In addition to the core product and service, a wholistic and an integrated experience, that is, ancillary services are becoming more important to the customers.” the report notes.

The majority expects a seamless digital experience but is still influenced by agents and advisors while they buy an insurance policy. A growing number of people are going online for their research, but only rarely is the Internet the only source of information when it comes to picking a financial product. “Customers now expect their insurers to offer simple, transparent and flexible products and services — all online. They look at claims paying ability, service quality, and expert opinion before they choose to buy a policy from an insurance company,” said Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance.

In the many conversations conducted during the surveys, the team at IMRB-Kantar reports, customers came across as more disbelieving. Many said that they actively sought the cons as well as the pros of a product and said that they expect insurers to communicate with them more often and in greater detail. They compared them with e-commerce companies that inform customers about every step from the time the amount is paid to the delivery of the product.

“The ecommerce sector, has changed paradigms with respect to making payments, purchasing a product, service communication. Industries like telecom, insurance have also introduced innovative policies like introduction of mobile network portability, health insurance policy portability, which is leading to lower barriers. Given this transformation, no longer do consumers want to put all their eggs in one basket,” said Nitasha Singh, senior consultant, Kantar IMRB & Stakeholder Loyalty Expert.

Companies, the report added, must look at the customer journey differently. The story begins with acquisition but does not end there. They need to engage and retain customer interest. And also keep in touch more often as customers are not always vocal about their expectations.

The changing face of the customer

Trust less, research more  

According to Kantar IMRB’s survey Insurance India, 2016 fewer customers are going for word-of-mouth recommendations. What used to be a market shaped by family and friends has shifted towards a network of agents, company representatives and online portals 

• More than 50% actively met with agents/ advisors before making their decision 

• 20% looked for information online about brands, products etc 

• Around 15% went to insurance company branches before finalising their purchase 

• Buyers arm themselves with information from multiple sources, comparing service and experiences between sectors; customers said they compare airlines, hospitals and insurers as they seek “customer centricity” across touchpoints

Demand more 

Customer expectations on service have changed dramatically and more are willing to change insurers if they are not happy 

• A survey of lapsed life insurance customers revealed more than 60% did not contact the insurer about their problems prior to letting their policy lapse or surrendering

• Customers said insurers should be easy to deal with, simple and ensure easy access

• Continuous engagement preferred; customers want timely communication, updates, fast resolution of issues, instant updates about transactions and reminders

Want tech, but with a human face 

• While customers expect and rely heavily on a digital engagement with their insurers and banks, they seek direct contact with a representative

• More than 40% of customers who bought online, interacted with an agent/ advisor prior to purchasing the policy online

• A study for a leading mobile service provider revealed, only 30% of the customers chose to complete their requirement on IVR (interactive voice response). The rest needed “human intervention” to complete their requirement