An estimated 15.5 million people (33% of the adult population) claim that they have switched insurers over the past two years due to poor service, according to new research from information management firm EDM Group.
The company has also interviewed insurance intermediaries and senior executives on their views on the opportunities open to insurers for improving their levels of efficiency, and at the same time reducing costs. Nearly 15% of insurance executives believe that the opportunities here are ‘huge’, and a further 38% think they are ‘significant’. 68% think that more digitisation of information and data by insurers would help significantly here, and a further 18% believe it would have a small role to play. The corresponding figures from the research with intermediaries were 56% and 29%.
In terms of which areas offer the best opportunities for insurers to improve their efficiency, 53% of insurance executives cited back office administration. This was followed by claims (44%), customer retention (38%) and underwriting (35%). When the insurance intermediaries were asked this question, 68% said back office administration, followed by 42% who said customer retention and 22% underwriting.
Some 42% of insurance executives interviewed believe that insurers will be effective in improving their levels of efficiency over the next three to five years, compared to 12% who don’t. The corresponding figures for insurance brokers are 27% and 19%.
Craig Campbell, head of insurance sector at EDM Group, said: “It is clear from our research that both insurance executives and intermediaries believe there is significant room for improving levels of efficiency and cutting costs in the industry, and that the digitisation of information has a clear role to play here. For this reason, we see this as one of our biggest growth markets.”