The latest South African Consumer Satisfaction Index (SAcsi) reveals which short-term insurers are doing the best job for their customers in the country.
The findings from the 2016 survey show that Santam is achieving the sole leadership position in the sector, while OutSurance has dropped from the top position in 2014.
Over 2,340 customers were surveyed to evaluate their satisfaction with short-term insurance. Data was collected between December 2015 and March 2016. Brands included were Santam, Mutual & Federal, OutSurance, Hollard and a category called “Other”.
The overall industry score rose 1.5 points to 77.9 out of 100.
Santam emerged as industry leader at 80.0, and was named as the closest to ideal.
Mutual & Federal scored on par with the industry at 78.9 and showed one of the biggest improvements since 2014.
OutSurance fell from its leadership position to a score of 76.7, while Hollard’s score is still below par at 71.8 along with the “other” category that was also rated below industry average.
|#||Short-term Insurer||2015 Score||2016 Score|
|2||Mutual & Federal||77.1||78.9|
According to Professor Adré Schreuder, founder of SAcsi and CEO of Consulta, the link between expectations, perceived quality and perceived value is very important in this difficult economy.
“It seems as if the emphasis that OutSurance placed on lower premiums by cutting out the intermediaries is no longer believed by customers, since there is a marked drop in expectations and perceived quality. Most telling is the significant drop in perceived value,” he said.
A big concern in this industry, he said, is the fact that perceived value is down in the three year trend from 78.3 to 76.7, irrespective of a small recovery in value between 2014 to 2015.
Perceived value is measured in two unique but deliberate ways: overall price given the quality and overall quality given the price.
The industry leader, Santam, has been successful in positioning itself as a trusted insurance company when paying claims and as a result, perceived value has improved, Schreuder said.