September 30, 2024
1 minute read
In 2023, the UK has seen a notable surge in insurance premiums, with nearly 35% of car insurance customers and 30% of home insurance customers facing hikes of over 10%. This trend has adversely affected customer loyalty, resulting in a 27% decrease in renewal likelihood for car insurance customers, and 22% drop for home insurance customers.
Fortunately, clear communication can help mitigate this impact. When insurers transparently explain the reasons behind premium increases, the likelihood of policy renewal improves by 25% for car insurance and 14% for home insurance.
Effective communication during the renewal process is crucial. Responsive and knowledgeable representatives play a key role in managing customer expectations. When staff fall short in these areas, it can lead to significant eNPS penalties of 44 to 49 points, even when the representative's customer rating drops only from 'great' to 'good.'
To boost renewal rates and reduce penalties, insurers should prioritize training their staff to deliver clear, timely, and informative responses about premium changes. This proactive approach not only fosters trust but also strengthens customer loyalty, even in a challenging market.
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