You are here: Home - News -

Less than half choose life insurer on price

by: Thomas Smith
  • 03/07/2015
  • 0
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.”

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
development plans with an architect leaning over them
Rising planning permissions puts London housing target within reach

The number of homes given planning permission in London since the end of 2014 has brought official housing targets within...