Latest Insurance DataLab research reveals decline in Customer Experience, with a significant fall in claims performance 

Latest Insurance DataLab report shines a light on customer experience, and it makes for a worrying read. 

The 2023 Insurance DataLab Customer Experience report has revealed a decline in the customer experience offered by insurance companies, with the average score falling to 68% from 69% a year earlier. 

The research rates insurance companies across four key pillars – claims, complaints handling, customer satisfaction and transparency – with claims experiencing the biggest decline over the last 12 months. 

The average claims rating fell by 11% over the course of 2023 to 72%, although this was still the highest rating of the four pillars. 

Some of this deterioration can be attributed to a change of methodology that saw the introduction of the FCA’s value measures, but this decline should still be of concern. 

The insurers covered by the research paid an average of 84% of claims, but some insurers paid out as little to 15% to 20% in certain business lines. 

Such low acceptance rates are worrying for the industry, particularly with insurance already having a reputation for not treating customers fairly – even if that poor reputation is somewhat exaggerated in the mainstream media and wider public opinion. 

Indeed, Consumer Intelligence’s claims satisfaction analysis revealed an average score of 8.2 out of 10 across home and motor insurance. This means that consumers appear to be satisfied with their experience, even if this score is 0.3 points lower than the previous year. 

Despite this deteriorating claims performance, claims was still the highest rated pillar in Insurance DataLab’s analysis. 

The industry’s complaints handling received an average score of 65%, down from 67%, while customer satisfaction stood at 63% – in line with the previous year’s performance. 

Transparency, meanwhile, was the only pillar to improve over the last 12 months. The average rating, as judged by Fairer Finance’s analysis of insurer user journeys and policy wordings, rose by five per cent points to 71%. 

It is worth noting, however, that the average transparency score for the industry as a whole has dropped in recent months. 

Poorly executed user journeys and confusing policy wordings are still of concern to consumers and the regulator, and it is one of the major issues contributing to poor performance by insurers across a number of different metrics. 

Indeed, until these issues are resolved, the industry will continue to be dogged by high levels of complaints and a reputation for not delivering the fairest of outcomes for its customers. 


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