27th November 2015
Customers are least likely to be loyal to their insurers than any other business.
Think tank Future Thinking said average time spent with an insurance company was six year, the lowest of any group surveyed, and far below the 15 years spent with banks, 10 years with credit card providers and seven years with internet providers.
Customers were also least likely to want to continue with their provide, with 68% saying they would continue to give them their custom compared to 85% for current account providers and 84% for credit cards.
David Ross of the Chartered Insurance Institute blamed the confusion over policy documents for the lack of loyalty.
‘It’s interesting that the research finds customers are less loyal to their insurance providers than they are to their banks and utility providers,’ he said.
‘Ultimately insurance is a lot more complicated, consumers are baffled by their policy documents and often make decisions based on price rather than cover – as they just don’t understand it.’
He said the CII’s research found one in four had no idea what their car insurance covers, equating to 8.7 million drivers.
Ross said the lack of knowledge about policy details could be disastrous for consumers.
‘Insurers are trying to make their policy wordings simpler but there is still some way to go. The legal elements that underpin car insurance, for example, are complex and are understandably challenging for the average consumer,’ said Ross.
‘Our research has found that British drivers are frequently baffled by insurance, with many having no idea what they are covered for. Should the worst happen, this could mean that consumers are left out of pocket or they end up paying for cover twice because they never knew they had it.’