The South African insurance industry is well-developed and has played an important role in the economic landscape of the country. According to SA Customer Satisfaction Index data collected between December 2014 and March 2015, customer satisfaction in the short term insurance industry in South Africa has declined for the second year in a row.
OUTsurance and Santam have emerged as industry leaders, scoring above the industry average of 76.4%. Over 3160 customers were surveyed. Professor Adre Schreuder , founder of SAcsi and CEO of Consulta Research, says: “The lower overall score is linked to the fact that most brands aren’t meeting their customers’ expectations.”
The survey also revealed that a significant pain point for many individuals is complaints and complaints handling.OUTsurance, which ranks high for home insurance as well as for car insurance, achieved an overall score of 80%. Santam followed, with a rating of 77.3% and Mutual and Federal with 77.1%. Hollard lags behind with a below-par rating of 71.6%.
OUTsurance also achieved an 8% increase in the score for Net promoter Score (the likelihood that customers would recommend a particular brand).
The link between expectations and delivery is important when it comes to insurance. OUTsurance seems to have found a winning formula in this regard. The institution achieved generally popular reviews on Hello Peter.
The SA Customer Satisfaction Index measured customer loyalty as a combination of customer retention and price tolerance. Santam as well as Mutual and Federal experienced a significant decrease in customer loyalty – which featured as an overall industry trend.
Important factors to consider when searching for an insurance provider:Consider the customer service they provide
Pay special attention to the number of complaints listed
Are claims handled efficiently? Does the company pay on time?
Consider if the company offers the best rates.