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Ugandan Insurance Survey Reveals Mixed Customer Satisfaction Levels

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ugandan insurance survey reveals mixed customer satisfaction levels
ugandan insurance survey reveals mixed customer satisfaction levels
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More than three-quarters of surveyed policyholders open to future recommendations

A recent survey conducted in Uganda’s insurance industry, released during the 57th CEO breakfast meeting in Kampala on September 26th, offers valuable insights into customer satisfaction levels. The survey, which involved 384 policyholders, sought to answer a central question: Are customers satisfied with insurance sector services? The results provide a comprehensive evaluation of various aspects.

Overall, the survey revealed that 72% of customers reported satisfaction with their insurance experiences. This satisfaction was assessed across different areas, with the premium payment process receiving the highest rating at 77%, followed by customer services (72%), communication from insurers (68%), claims handling (68%), and complaint resolution (52%).

The survey also employed the Net Promoter Score (NPS) to gauge customers’ willingness to recommend insurance services. Encouragingly, 77% of respondents expressed a positive inclination to recommend insurance, with 66% falling into the “promoters” category and 11% as “passives.” Although an NPS score above 50% is considered good, the survey suggests that insurers should aim for an “amazing” experience, ideally above 80%.

The survey analyzed various parameters, including customer satisfaction with premium payment methods, insurance product range, claims processing, and complaint resolution. Additionally, it aimed to identify the factors driving satisfaction and the challenges policyholders encounter when accessing insurance services.

Conducted across Uganda’s regional hubs, the survey targeted a study population of 204,598 policyholders, with 384 respondents providing valuable insights into the sector.

The findings paint a nuanced picture of customer experiences. While some customers expressed satisfaction and confidence in their policies’ long-term benefits, others shared stories of dissatisfaction and challenges. These mixed views underscore the industry’s need for improvement and its potential to address the low insurance penetration rate in Uganda, which has remained below 1% for several years, one of the lowest rates in Africa.

Ibrahim Kaddunabbi Lubega, CEO of the Insurance Regulatory Authority (IRA), urged industry players to address service gaps. He emphasized the importance of considering the implications of decisions from a policyholder’s perspective and encouraged reinventing practices for better relevance.

The survey identified key drivers of customer satisfaction, including reasonable pricing, efficient claims management, knowledgeable customer-facing staff, relevant product offerings, transparent terms and conditions, convenience, reliability, and service simplicity.

Among its recommendations, the survey calls for insurers to view claims payment as a business growth strategy and ensure that customers understand their policies and receive fair compensation. Dialogue with customers, digitization of value chains, and providing statements to life insurance policyholders were also suggested.

The survey emphasizes the significance of a positive customer experience and highlights that improving customer care, communication, claims payment, and complaints management is essential to increase insurance uptake in Uganda.