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Less than half choose life insurer on price

by: Thomas Smith
  • 03/07/2015
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Less than half choose life insurer on price
Price is a reason for choosing a provider for 48% of life, pensions and ISA customers while brand trust and loyalty came into consideration for 47%, a report by Majesco has found.

For those on incomes of £75k to £149.9k the most commonly cited reason for choosing a provider was quality, rather than price.

The findings come from Assessing the Quality of the Customer Experience: The 2015 Majesco Report on the UK Insurance Industry, based on a survey of 1000 UK adults with insurance.

Among the under 35s, the importance of service was higher than those over 35, while price was less of a factor for under 35s.

The report also found that 58% of respondents were willing to recommend their insurer for a discount on their renewal of 10-20%.

Less than a third (30%) would recommend their insurer without the offer of any additional benefits, and 11% would not be induced to recommend them by anything.

A cuddly toy would encourage 4% of respondents to recommend their insurer.

Vidyesh Khanolkar, vice president of Majesco (UK), said at the report’s launch: “It’s not price alone.

“Customers are seeing this as a non-commodity, insurers need to respond and see how they can treat this as a non-commodity and come up with differentiated propositions.”

He added: “As income increases, the importance of price goes down quite drastically and the importance which consumers attach to quality of service goes up pretty fast.”

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