New data published by the Chartered Insurance Institute (‘CII’) today (15 November 2023) reveals overall consumer satisfaction with insurance policies reached its joint highest level since the organisations’ Public Trust Index survey began in July 2018.
The figures also show that satisfaction among those aged 55 or over rebounded sharply from a series low earlier in the year.
The professional membership body for the insurance sector asks around 1000 consumers and 1000 SMEs about their satisfaction with a range of insurance policies every three months, and the Index is the longest established industry measure of its kind in the UK.
The latest outturns show that 86% of consumers who had recently bought an insurance policy were satisfied with their purchase, the highest level since July 2022. That figure was broadly-based across motor insurance (86%), travel insurance (86%) and buildings/contents insurance (84%).
The Index also looks at consumer responses by age, gender and ethnicity. The proportion of respondents aged 18-34 who said they were satisfied with all forms of insurance policy that they had purchased recently fell slightly, to 82%, significantly below other age groups. Those aged 55 and over reported a sharp rebound in satisfaction from earlier in the year, rising from 83% to 87%.
The Index also looks at opportunities to improve levels of consumer trust. Customers who made a claim over the past year reported further improvement in the speed of claims being paid by insurance companies. However, consumers also reported weaker performance in relation to perceptions of loyalty. The so-called ‘opportunity gap’, which includes perceptions that existing customers are paying more than new customers with the same provider, has widened for the sixth survey running. Given its importance to consumers, improvements in this area would go furthest to improving public trust.
Reflecting on the numbers, CII Group Policy & Public Affairs Director, Dr Matt Connell, said: “Our headline satisfaction number suggests insurance companies are doing many things well in the eyes of consumers. It is particularly pleasing to report that the investments made by many firms to speed up their claims processes are being recognised by consumers.
“Over recent years, insurers have done a huge amount of work to comply with the FCA’s General Insurance pricing rules, which ensure that renewing home and motor insurance consumers are quoted prices that are no more than they would be quoted as a new customer through the same channel. However, these rules have not altered consumers’ perceptions about fairness between new and existing customers.
“This is partly because of inflation, with all customers facing higher premiums, but our research also shows that consumers are ready to listen to assurances about how their policy is priced. A guarantee for existing customers that they won’t be charged more than a new customer would have a real impact on public trust. Insurers should not be afraid to make a virtue out of a necessity.”
Table 1: CII Public Trust Index, Consumer satisfaction
|Waves 2&3||Waves 7&8||Waves 8&9||Waves 9&10||Waves 10&11||Waves 11&12||Waves 12&13|
|Overall satisfaction (%)||84%||82%||85%||86%||85%||83%||86%|
|Aged 18-34, satisfied||77%||74%||81%||81%||81%||83%||82%|
|18-34, not satisfied||7%||12%||9%||8%||9%||8%||7%|
|Aged 35-54, satisfied||83%||84%||84%||87%||87%||86%||86%|
|35-54, not satisfied||3%||5%||4%||4%||3%||3%||4%|
|Aged 55+, satisfied||91%||86%||88%||88%||86%||83%||87%|
|55+, not satisfied||1%||4%||3%||3%||4%||3%||2%|
|Policy Type (%)|
|Motor, not satisfied||4%||5%||5%||5%||4%||4%||4%|
|Travel, not satisfied||3%||8%||8%||4%||4%||5%||5%|
|Buildings/contents, not satisfied||4%||7%||4%||5%||6%||5%||4%|
Source: CII Public Trust Index
|Diagram 1: Consumer satisfaction, by age||Diagram 2: Consumer satisfaction, by policy type|
Source: CII Public Trust Index