The life Insurance industry has no clear market leader in customer satisfaction, according to Consulta’s latest South African Customer Satisfaction Index (SAcsi) for the sector.
The satisfaction score is based on brands exceeding or falling short of customer expectations and assessing how well a brand is measured against respondents’ perception of the ideal life insurer.
The Index also includes, among other measures, a Customer Expectations Index, a Perceived Quality Index and a Perceived Value Index.
According to the findings, Metropolitan’s customers are still the most satisfied with the group’s service. However, at 80.8 points, the company moved out of its 2016 leadership position to be statistically ‘on par’ with the industry – opening the spot for a market leader, said Consulta.
While Metropolitan saw a decline of 1.8 points from 82.6 in 2016, Old Mutual – which has stayed on par for the last three years – had the second highest gain to 80.6, up 0.3 points from 2016.
“This year will certainly be the year to watch life insurance providers as they race to differentiate themselves to gain the leadership position in customer satisfaction. Being on par with the industry standard doesn’t set market leaders apart,” said Consulta CEO, Professor Adré Schreuder.
Although Discovery Life’s SAcsi score improved the most in this round of measurement when it increased from 74.0 in 2016 to 76.3 in 2017, the company is still below par when compared to the industry.
Liberty’s score dropped significantly from 78.1 to 73.9 as it struggled to remain consistent and Momentum’s decline in customer satisfaction fell from 77.5 to 74.7 in the same period.
“The two lowest scorers, Momentum and Liberty, were adversely affected by changes in their leadership structures over the past year,” said Schreuder.
“For companies to make customer satisfaction a priority, there needs to be consistency in strategic leadership as customer centricity is entrenched in business strategy. Transformation initiatives or subsequent internal programmes should not divert from a customers’ needs and wants,” he said.
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