As inflation perpetuates significant premium increases, insurance carriers must stay focused on customer experience (CX) to improve customer sentiment and loyalty.
To help P&C carriers respond to recent shifts in the market and resulting customer feedback, NPS Prism analyzed insurance customer experience trends for Q3 of 2022. Our analysis was based on unbiased, direct survey feedback from 15,000 insurance consumers. We focused most notably on trends associated with premium increases and related NPS scores, as well as opportunities within digital channel experiences.
We’ve compiled our top insights from the last quarter and developed actionable takeaways CX teams can use to navigate ongoing premium increases, increase NPS and improve customer experiences as the market continues to evolve.
Auto and Home eNPS declined ten points in 'renewal' and "purchase' experiences between Q1 and Q3 2022.
Inflation has shifted the trajectory of the global economy, impacting nearly every industry and market segment. The insurance space, in particular, has seen steep premium increases across coverage types.
In the Auto insurance space, call center performance across emotive episodes declined by five points in 2022.
While call center episodes have led to a decline in digital NPS for many carriers, digital claims episodes pose opportunities for them to recover channel performance.
Carriers’ average speed to pay out Auto and Home claims may have remained stable between 2021 and 2022, but their customers are relying more on digital channels to file and follow up on these claims.
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Auto and Home customers with an auto-renew option are 25% more likely to renew than customers without auto-renew.
As premiums increase and customers continue leaning into digital channels, carriers must be proactive in facilitating renewals for their customers. Carriers should use digital channels to communicate with customers at least 30 days before renewal, including clear updates about premium increases, coverage changes and any other details that may affect their renewal decisions.
Beyond upfront communications, many carriers find that auto-renewal options increase the likelihood of renewal and boost NPS amongst the customers who choose to renew. Auto-renewal options account for customers’ preferences toward digital, self-service experiences and create a natural starting point for renewal conversations.
Insurance customers who use only digital channels give their carriers lower loyalty scores than multichannel customers.
Despite steady upticks in digital adoption, insurance customers remain heavy users of offline, human-led channels — like contact centers and in-person meetings. The value of these human channel experiences only increases as customers become more frustrated with their premium options when renewing or shopping for new policies.
However, insurers must strike the right balance between human and digital, merging innovative, convenient purchase experiences and empathic, personalized ones.
Carriers should evaluate NPS and customer feedback across specific episodes in the buying process, then make strategic decisions on where and how to integrate human touch points into digital-first experiences.
In times of pricing increases and market uncertainty, carriers should invest in customer feedback and competitive analyses to inform CX strategies that align with their customers’ ever-evolving needs and expectations.
NPS Prism’s CX benchmarking platform provides your insurance organization with in-depth customer feedback and custom NPS benchmarks that point you to the most impactful improvement opportunities, allowing your CX team to keep a pulse on customer sentiment and how your experiences compare to your competitors.
Footer: Source: NPS Prism US Insurance Survey Q3 2022 n= 15,000