Transformation Needed in Life Insurance Sector for Customer Satisfaction
Why Insurers Must Evolve to Meet Changing Client Expectations
1
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Insurance companies in Australia and other developed economies are grappling with meeting the evolving demands of clients, reveals a recent report by Capgemini.
The World Life Insurance study conducted by the consultancy highlights that a significant number of policyholders are dissatisfied, with one out of three finding policy terms too complex, and 27% expressing discontent with arduous application procedures.
Moreover, after policy acquisition, 25% of both retail and group clients express annoyance over prolonged waiting periods, while 23% are disappointed by the lack of accessible self-service features for policy modifications.
The process of claims has emerged as another pain point, particularly due to insufficient digitization. Approximately one-third of retail clients report facing a convoluted claims process, and 27% have cited a lack of empathy during their interactions.
According to the report, the industry is urgently reviewing its customer interaction strategies, mainly because penetration rates are declining in established markets.
“In an environment marked by high inflation and economic uncertainties, there is a tepid interest in conventional life insurance offerings,” observes the report.
Interestingly, even though increased interest rates have buoyed insurers' recent fiscal outcomes, the report warns that any short-term profitability could be overshadowed by long-term sluggish industry growth.
The push towards enhancing customer experience for most insurers is impeded by outdated infrastructure, the hesitance to embrace new technological innovations, and regulatory constraints, as indicated by Capgemini.
Insurers acknowledge the urgent need for modernization, yet merely 41% have succeeded in achieving or surpassing their recent modernization targets. Transforming customer interactions through factors like AI-enhanced human interface and boosting operational efficiency stands as an avenue for regaining the market edge.
“The growth opportunity is vast. It is crucial now to rejuvenate the intrinsic worth of life insurance products,” affirms Capgemini.
The findings of the report are drawn from surveys conducted with consumers and industry executives between May and June.
Published:Wednesday, 23rd Oct 2024 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
In response to the catastrophic flooding that has devastated parts of western Queensland, WFI Insurance has stepped forward with a substantial donation of $250,000 to Rural Aid. This contribution is aimed at bolstering relief efforts for farming communities grappling with the aftermath of the region's most severe floods in half a century. - read more
The Australian Financial Complaints Authority (AFCA) has recently upheld a substantial increase in home insurance premiums for a property, attributing the rise to updated assessments of flood risk. This decision underscores the critical role of accurate risk evaluation in determining insurance costs and the necessity for property owners to stay informed about potential changes in their risk profiles. - read more
Envest Group, a prominent player in the insurance industry, has announced the launch of TLI Underwriting, a new heavy motor agency set to commence operations at the end of this month. TLI Underwriting will function as an authorised representative of Envest's heavy motor specialist underwriter, ATL Insurance Group. - read more
The Australian Financial Complaints Authority (AFCA) has recently ruled against a trucking company that misrepresented its insurance history and operational details when obtaining a policy from NTI. This decision underscores the critical importance of providing accurate information during the insurance application process. - read more
Australia's financial regulators, the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC), have issued a strong directive to the nation's A$4.5 trillion superannuation industry. They emphasize the urgent need for accelerated preparations to accommodate an estimated 2.5 million individuals expected to retire within the next decade. - read more
Insurance Australia Group (IAG), a leading insurer in the Australian market, has raised concerns about the escalating impact of climate change on home insurance premiums. The company warns that Australians should anticipate rising costs, attributing this trend to the increasing frequency and severity of weather events driven by climate change. - read more
QBE Insurance Group, a prominent player in the Australian insurance sector, has recently experienced a notable decline in its share value, reaching a seven-month low. This downturn is primarily attributed to a slowdown in the company's premium rate growth during the third quarter of the 2025 fiscal year. - read more
The Australian Competition and Consumer Commission (ACCC) has recently voiced concerns regarding Insurance Australia Group's (IAG) proposed acquisition of the Royal Automobile Club of Western Australia's (RAC) insurance business. Valued at A$1.35 billion, this deal aims to expand IAG's footprint in Western Australia. However, the ACCC warns that such consolidation could diminish competition in the state's motor and home insurance markets, potentially leading to higher premiums and reduced service quality for consumers. - read more
QBE Insurance Group, Australia's largest insurer by market value, has recently experienced a significant downturn in its share price, reaching a seven-month low. This decline is primarily attributed to a slowdown in the company's premium rate growth during the third quarter of fiscal 2025. For tradespeople across Australia, this development could have notable implications, particularly concerning insurance premiums and coverage options. - read more
The Australian Securities and Investments Commission (ASIC) has recently raised significant concerns regarding the quality of financial advice provided to individuals about self-managed superannuation funds (SMSFs). This development is particularly relevant for tradespeople considering SMSFs as a means to manage their retirement savings. - read more
In the dynamic world of Australian agriculture, farm equipment plays a crucial role in the day-to-day operations of farms. From tractors to harvesters, having the right machinery means managing your farm more efficiently. However, the high value of this equipment makes it essential to protect it adequately through insurance. - read more
For Australian farmers, livestock is more than just a vital asset; it's the heartbeat of their livelihood. In a land where the sunburnt plains are as relentless as they are beautiful, protecting your herd isn't just a duty; it's a necessity. That's where livestock insurance comes into play—a shield against the unpredictability of Mother Nature. - read more
Risk management is the practice of identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events. In farming, risk management involves various strategies to protect the financial health and operational stability of the farm. - read more
Farm liability insurance is a type of coverage that protects farmers from financial losses due to legal claims and lawsuits. This insurance is crucial for safeguarding your farm against various liabilities that may arise from farm operations. - read more
Welcome to our comprehensive guide on navigating the complexities of farm insurance for Australian farmers. As an integral part of the agricultural industry, insurance provides a safety net that helps secure the livelihood of farmers against unpredictable events that can lead to financial hardship. From property damage due to natural disasters to loss of livestock or crops, having adequate farm insurance can make all the difference in keeping a farming operation afloat in times of crisis. - read more
Farming is much more than an occupation; it's a way of life and a heritage that often spans generations. In today's ever-evolving agricultural landscape, embracing modern practices while preserving your farm's future has never been more crucial. Estate planning emerges as a pivotal strategy for safeguarding your agricultural legacy, ensuring that your hard-earned investments and the land you hold dear are passed on according to your wishes. - read more
Welcome to the first steps in future-proofing your farming legacy. When we think about the hustle and bustle of daily farm life, it's easy to overlook the critical importance of estate planning. For the Australian farmer, estate planning is not just a matter of securing your assets; it's about ensuring the survival and progression of your hard-earned labour to the next generation. - read more
Farming in Australia is not just a job, it's a way of life. However, it’s also a livelihood that comes with its own unique set of risks. From unexpected weather events to machinery breakdowns, the life of an Australian farmer is fraught with uncertainties. - read more
Hobby farming has become increasingly popular in Australia, with many individuals and families embracing the joys of growing their own produce, raising livestock, and enjoying a rural lifestyle. Whether it's a small vegetable garden, a few chickens, or a larger mixed farming operation, hobby farms offer both relaxation and a connection to nature. - read more
Farming in Australia is more than just a way of life; it is a critical sector that supports the nation’s economy and food supply. However, managing a farm comes with its own set of unique risks. From natural disasters to equipment failures, farmers face numerous challenges that can impact their livelihood. - read more
Need a Quote?
Start your free farm insurance quote comparison here.
Knowledgebase
Insurance broker: An agent acting on behalf of the insured (not the insurance company) who negotiates the terms and cover provided by the insurer in the insurance policy.