Customer satisfaction has been a key aim for life insurance companies. However, the annual survey by Hansa Research, a market research company, called "Investor CuES" which measures customer satisfaction of the life insurance industry using a metric called 'Net Promoter Score' (NPS) shows stagnation in this important area in the last one year from 2023 to 2024.
The NPS score of the industry increased significantly in the previous years, rising from 38 in 2021 to 54 in 2023. However, it remained the same in 2024 at 54. The survey attributes this to lack of brand differentiation and changing customer expectations.
Among the top insurers, ICICI Prudential and Max Life have secured the highest scores in the survey due to their user-friendly products and plans, digital support, easy documentation and policy issuance.
HDFC Life, Tata AIA and LIC were the other brands that finished in the top 5.
LIC has increased its score after declining in the last two years due to underwhelming digital experience, reported Cafe Mutual.
The other key takeaways of the survey are as follows:
- Easily and quickly available policy forms were the number 1 brand selection criteria among customers;
- While 44% policyholders have seen their claim requests rejected in the last one year, 27% of them were unaware about the reason for rejection;
- Medical reasons were the number 1 reason for rejection of claims;
- There is a growing understanding in customers about life insurance as a wealth building tool;
- The brand awareness of private insurers in the uninsured customer segment is rising;
- The top three reasons for customers to not buy life insurance are behavioural biases/perceived need, affordability and a belief that life insurance products are difficult to purchase;
- The uninsured customers in non-metros cited affordability as a bigger barrier while buying life insurance They also called other better investment options as a reason for not purchasing life insurance;
- The younger demographic between 25-35 years selected a brand based on ease of purchase and preferred monthly payments using online modes; and
- 30% of customers cited lack of contact by insurers as a reason for leaving a policy. This number has increased by 8% in the last one year.