The 2015 study on Customer Loyalty in the Life Insurance Sector by Indian Market Research Bureau International has shown that 26% of customers are unhappy with their current insurance providers are unlikely to renew their insurance the following year.
Although High Risk customers who choose to discontinue with their existing life insurance providers have halved over the last two years, the survey showed.
Customers' grievances have been resolved significantly and the guidelines set by the Insurance Regulatory and Development Authority are working in favor of the customers.
Customers also seem to be happier with the services being provided to them. They are being reminded of their due dates regularly and are receiving the premium receipts on time for the payments that they make.
"IRDA regulations have had a significant impact on the way insurance players have ramped up their products and services," said, Praveen Nijhara, VP, CSMM, IMRB. He also added that the study provides a thorough analysis of customers' perceptions and it helps companies to reduce the risks relating to potential loss of customers.
Number of customers using the online channel to make payments has also shown a sharp growth.
The report also states that close to 60% customers are Truly Loyal to their insurance providers.Truly Loyal customers are those who are loyal towards a particular brand and are certain to buy more.
Unfortunately, new customers gave low ratings on 'Ease of using the website for transacting'. So the companies are gearing the Agents up on technology to improve their modules on product knowledge and soft skills.
It is also found that customers who bought insurances through agents have weaker perceptions and experiences about the companies. The Insurance sector also needs to focus on the Agents, according to the report.
The report is based on the responses from over 6500 customers from across 15 cities.
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