Customer loyalty in insurance companies

Customer loyalty in insurance companies: from price to service quality

Loyalty in insurance is built not only by a discount or the habit of renewing a policy. A customer assesses the clarity of the terms, the speed of response, the convenience of digital channels and, above all, how the company behaves when an insured event occurs. The historical Ernst & Young study preserved below showed customers’ low willingness to stay automatically with their current insurer; today this problem is even more visible because offers are easy to compare online.

Key idea: customer retention begins before the sale. A transparent contract, realistic promises and convenient claims settlement create more trust than aggressive advertising.

Ernst & Young analysed policyholders’ expectations and their opinions about the work of insurance companies in seven regions of the world (23 countries), surveying 24,000 customers. It turned out that insurance company customers rarely renew their current contracts, are not loyal to their insurers and are dissatisfied with the quality of insurers’ service. The insurers have their own explanation for these results.

Ernst & Young concluded that insurers often fail to react in time to changes in the economy, while customers themselves make ever greater demands on the quality of service. 24,000 insurance company customers were surveyed, divided into seven large regions of the world: Asia, Europe and the Americas, as well as India, Japan and the UAE. Customers’ trust was highest in India (93%) and lowest in Japan (51%).

There are very few loyal customers in the insurance market who are ready to keep renewing their existing policies without analysing competitors’ offers. A significant share of insurance company customers are dissatisfied with the level of service and the quality of customer care.

The loyalty problem may become more acute in the near future, as a result of which some customers will abandon familiar insurance arrangements and “old” companies and give preference to those organizations that fight hardest for customers’ trust. The development of modern internet technologies is also having a serious effect on the insurance market. More and more consumers analyse offers on the internet, often making use of the possibility of concluding contracts online.

Dissatisfaction with insurance companies is backed by figures. For example, more than 50% of respondents believe that the quality of service in the insurance segment is lower than in other markets (banks, pension funds). In addition, there is a high share of customers who are dissatisfied with the lack of economic and other incentives from insurers to keep them loyal.

More and more consumers analyse offers on the internet, often making use of the possibility of concluding contracts online. Dissatisfaction with insurance companies is backed by figures. For example, more than half of respondents believe that the quality of service in the insurance segment is lower than in other markets. In addition, there is a high share of customers who are dissatisfied with the lack of economic and other incentives from insurers to keep them loyal.


These statistics clearly show how important it is to use the services of specialists when choosing an insurance company.

What has changed in policyholder behaviour

A customer no longer needs to call several offices to compare basic terms. Electronic policies, mobile apps, aggregators and reviews reduce the cost of switching companies. As a result, automatic renewal without comparison is less common, especially in mass-market lines of insurance.

Expectations of speed have also grown. Users want to receive a quote, a contract, the status of their request and a payment decision in a clear digital channel. If the information is contradictory or an application has to be resubmitted to different employees, trust quickly declines.

Seven loyalty factors

  1. A clear product. Risks, exclusions, the deductible and limits are explained in plain language.
  2. A fair price. The customer understands the calculation formula and the reason for any change in the premium.
  3. Accessibility. The company responds by phone, online and in the office without losing information.
  4. Quality of claims settlement. The list of documents and the deadlines are known in advance, and the status of the claim is transparent.
  5. Personalization. The offer matches real needs, not just the sales plan.
  6. Data protection. Personal information is used securely and under clear rules.
  7. Feedback. A complaint is considered on its merits, and any problem identified is fixed.

Why a discount does not guarantee customer retention

A low price helps attract attention, but it does not make up for weak cover or a difficult claims process. If a customer learns of an exclusion only after an insured event, short-term savings turn into a loss of trust. That is why you should compare not only the premium but also the sum insured, the deductible, the list of risks, the service and the practical claims procedure.

A loyalty programme is useful when it complements a quality product. Bonuses, discounts and special terms must be transparent: no hidden increase in the base price, no imposed services and no hard-to-meet conditions.

Loyalty in compulsory insurance

Compulsory insurance services are provided only by insurance companies that hold the relevant licence. Even if the basic terms are set by law, the customer still chooses based on the convenience of the application process and the quality of advice and claims settlement. An intermediary can help to buy a policy, but the insurer named in the policy remains responsible under the contract.

For compulsory motor insurance, what matters is the accuracy of the data in the electronic policy, the availability of notification channels, an explanation of the simplified settlement procedure and the speed of response after a road accident. An error in the IIN, VIN or registration number can spoil the impression even before an insured event occurs.

How an insurance company can measure loyalty

  • the share of renewed contracts for comparable products;
  • the percentage of customers using several products;
  • the speed of the first response and of full resolution of the issue;
  • the share of requests resolved without a repeat contact;
  • complaints per thousand contracts and the reasons for complaints;
  • an assessment of the customer journey after a payment or a refusal;
  • churn after a tariff change or an insured event.

A single satisfaction indicator is not enough. A customer may give a high score to a polite employee but leave because of the price or an inconvenient contract. Surveys should therefore be compared with renewals, complaints, payments and actual behaviour.

What a customer can do

  1. Compare several contracts with identical sums insured and risks.
  2. Check the insurer’s licence and official details.
  3. Keep the insurance rules, the policy and proof of payment.
  4. Find out the notification deadlines and the list of documents before an event occurs.
  5. After making a claim, keep the incoming numbers and written decisions.
  6. Assess a company on facts, not only on advertising or a single review.

The historical study and today’s context

The Ernst & Young study cited below covered 24,000 customers in 23 countries and reflected the expectations of its time. Its individual percentages cannot automatically be carried over to Kazakhstan in 2026. However, the main conclusion remains relevant: insurers risk losing customers if they are slow to respond to changing expectations and do not improve their service.

Summary

Customer loyalty to an insurance company is the result of predictable quality along the whole journey, from quotation to payment. For a company, it is important to measure the real reasons for churn, simplify documents and keep its promises. For a customer, it is important to compare the full cover and check the insurer, rather than deciding on the discount alone.