The recent Protection Viewpoint Report reveals consumer expectations for speedy protection coverage.
- According to the report, 28% of consumers desire protection within 48 hours.
- About 44% expect claim decisions within a week, indicating demand for efficiency.
- Advisers face mixed reviews regarding service levels, with varied opinions noted.
- Transparency in annual statements is crucial, prompting calls for clear policy information.
The Association of Mortgage Intermediaries (AMI) has introduced its fifth Protection Viewpoint Report, highlighting consumer expectations in the insurance sector. With a focus on a customer-centric approach, the report reveals that 28% of consumers expect protection coverage to be established within 48 hours of application. This expectation underscores the necessity for insurers to be agile and responsive in their service delivery, especially in a market becoming increasingly oriented towards consumer convenience.
Further analysis reveals that 44% of consumers wish for claim decisions within one week, and 27% seek payments in the same timeframe. Such expectations indicate a growing demand for efficiency in processing and settling claims, aligning with the modern consumer’s preference for rapid service. This finding challenges insurers to enhance their operational procedures to meet these timelines.
The report also provides insights into advisers’ perspectives on service levels provided by insurers. While some advisers—around 28%—have reported a decline in service quality, about 20% have noticed improvements. In claims handling, the data is equally mixed, with 16% citing worsened service levels and 12% observing improvements. Such feedback prompts a need for insurers to standardise and elevate their service levels across the board.
On the aspect of policy retention, the data is encouraging. It states that 65% of advisers are actively working to maintain the effectiveness of protection policies, which is an increase from the previous figure of 60% in 2023. Regular policy reviews are conducted by more than half of the advisers, and 16% remind clients about the flexibility and payment deferral options, enhancing retention rates for 44% of those who undertake these actions.
Despite the positive trend in retention, the report points out areas needing improvement. It mentions that only 33% of consumers recall receiving an annual statement from their insurer, and just 16% reported that it led to a policy review. Consumers have voiced a need for transparency concerning what their policies cover, premiums, end dates, claim procedures, exclusions, and additional benefits. Such demands for transparency indicate a shift towards detailed and clear communication from insurers, a sentiment echoed by Robert Sinclair, AMI’s Chief Executive.
As insurers strive to meet these consumer expectations, industry leaders like Vikki Jefferies of Legal & General and Carrie Johnson from Royal London have highlighted the need for continued improvement. Jefferies mentions a focus on transparency and personalised advice, while Johnson stresses the importance of simplicity despite advances in technology. The overall goal remains to offer quick and fair support to customers during their most vulnerable times.
In light of these revelations, AMI has emphasized a four-point action plan aimed at bridging the gaps between consumer expectations and current service offerings. This plan involves understanding personal circumstances, simplifying product information, empowering consumers with choice, and highlighting the real-life benefits of insurance products. Such strategies are vital as advisers and insurers aim to better connect with their clients and offer more tailored services.
These findings underline the crucial role of efficient service and transparency in meeting modern consumer expectations in the insurance sector.
