A survey by independent financial researcher Defaqto has found that the elements of protection provider service rated most highly by financial advisers encompass the entire customer journey, from processing of new applications to payment of claims, highlighting the importance advisers place on ongoing customer satisfaction and retention.
Defaqto questioned 500 financial advisers who recommend individual protection products, asking them to rate 41 aspects of provider service across the following nine categories:
- Provider perception
- Administration of new business
- Administration of existing business
- Claims
- Commission and remuneration
- Product and products support
- Broker consultant services
- Underwriting
- Online services
The findings showed that the two of the top three elements of service (timeliness processing applications and staff competence) are in the ‘administration of new business’ category, while four other service aspects within the top 10 fall within the ‘claims’ category (staff competence, claims management, claims payment timeliness and staff courtesy). Treating customer fairly, which encompasses many measures throughout the policy lifecycle, was also an important element of service to advisers, ranking second.
Ben Heffer, Defaqto’s insight analyst for life and protection, said: “There is a growing emphasis on the general competence of staff and treating customers fairly. The sympathetic, consistent and competent handling of claims is shown to be very important as well, but, as before, the timeliness of processing new applications is still of greatest importance to advisers.
The processing of new applications has a direct relation to customer satisfaction and the income stream for advisers, while poor claims management has the power to alienate consumers from the insurance industry and inculcate mistrust, which in turn means less value and worse, an insurance-poor populous.
“The fact that the top 10 aspects of service was found to include so many diverse elements of the consumer journey, from initial application to the payment of claims, with a strong emphasis on fair treatment throughout, highlights the emphasis advisers place on ensuring the best outcomes for clients at all stages of the process.”
Defaqto’s Review of Protection Service, published today, is based on our latest survey of advisers who deal in individual protection products and contains:
- A detailed breakdown of the 41 aspects of protection service, showing how they are ranked in order of perceived importance and contextualised with independent analysis
- Tables showing which aspects of service are meeting or failing to meet adviser expectations
- The names of the top three protection providers across the nine main service categories
This publication can be downloaded free of charge at: www.defaqto.com/adviser/free-guides