Consumers want warmer approach from insurance firms

According to a recent report insurance customers in the UK are looking for a warmer, friendlier approach from insurance companies, with many stating that they would show more loyalty to insurance firms who demonstrated that they knew who they were and knew something of their insurance related history.

The survey was carried out by YouGov and was performed on behalf of Pegasystems. A number of areas of insurance were looked at as part of the survey including how consumers felt about their insurance companies and how consumers tended to contact insurance firms. The results of the survey showed that many insurance customers were looking for what was described as a ‘corner shop’ approach from their insurance providers, making them feel more like a valued customer rather than another number on a long list of clients.

The results also showed that the most common and popular way for consumers to contact their insurance firm was to contact them by telephone. The figures showed that 42 percent contacted their insurance providers by telephone. The survey also showed that there appeared to be growing confidence in using the internet to make contact with such firms, with 22 percent stating that they used email to contact their insurance provider, making this the second most popular method of contact.

The third popular means of contacting an insurance company amongst consumers in the UK was to go and see someone at the insurance firm face to face, but the results showed that most people prefer phone or email to communicate with these companies.

Jeremy Payne, senior director of international marketing at Pegasystems, said: “The Pegasystems research confirms the view that, in a world of increasing commoditisation and mass marketing, many consumers want a return to a ‘corner shop’ approach in which the provider knows who they are, the challenges they face and can provide an individualised solution that demonstrably meets their needs.”

Tags: insurance providers, Pegasystems, consumers, Insurance, view, Business and Economy, insurance customers

Direct debit costing insurance customers millions

Millions of people are paying too much for their contents insurance because they are being charged for paying by direct debit.

New research from Abbey shows that 9.3 million of us are being forced to pay a combined total of £290 million in direct debit charges.

The firm found that of the 215 policies which are on the market, 44 per cent charge interest to customers who use direct debit.

It has been calculated that the average person is paying £31 a year more for the privilege, with some being forced to pay £55 a year.

Of greatest concern for Abbey is that many people may be completely unaware of the interest being charged, leading to a false sense of satisfaction with a provider.

“Using direct debit to buy home insurance is not a service you should be paying for,” said Prasad Shastri, head of insurance marketing at Abbey.

“There is no point using a competitively priced insurer if they then go and add to your annual bill using back-door methods.

“Customers should carefully look to avoid insurers that levy an additional fee for paying premiums over the course of the year,” he added.

If you are considering taking out any type of insurance check to see if a charge is levied for paying by direct debit and calculate if it is worth your while switching provider.

Tags: Types of insurance, insurance customers, Direct debit, Business Finance, Financial economics, Debit card, finance, Direct debit costing insurance customers millions