According to Forrester’s “Singapore Auto And Home Insurance Customer Experience Index (CX Index™) Rankings, 2023,” while the overall CX quality of Singapore’s home and auto insurers improved steadily from 2018 to 2021, it suffered a setback in 2022 and has since remained flat in 2023. In addition, the industry average CX Index score remained unchanged at 61.9, indicating stagnation in the sector. There was also no statistically significant score change among individual brands.
For the report, Forrester surveyed 1,803 customers of auto and home insurance brands in Singapore to determine how they perceive their experiences and how CX drives their loyalty. Key findings of this year’s Singapore Insurance CX Index include:
- AIG reclaimed the top spot. Although AIG’s CX Index score improved only by a statistically insignificant 2.1 points, its score of 64.2 was enough to reshuffle the rankings and bump the US-based insurer to the top this year — the first time that AIG has led the CX Index since 2019. The company attributes its CX progress to a relentless focus on proactively seeking feedback across customer touchpoints and maintaining a disciplined closed-loop process to follow up on customers’ feedback.
- Narrow marginal differences in CX quality indicate a lack of differentiation. In the past two years, the CX Index scores of Singapore’s home and auto insurance brands have clustered within 3 or 4 points of each other, indicating that the industry’s CX is stagnant without much competitiveness. This narrow range leaves little room for significant CX differentiation and calls for a CX strategy pivot or at least a serious refresh to uplift CX and competitiveness.
- ‘Communication’ and ‘premiums, rates and, fees’ and ‘agents’’ are the top CX quality areas that affect loyalty the most. Insurers’ ability to communicate plainly in a timely and effective manner is critical to Singaporean customers. However, Forrester data indicates that only 45% of Singaporean customers think that their insurance company is doing a good job of communicating. Factors such as competitive pricing and transparent policy costs that meet their budget play significant roles in Singaporean customers’ overall perception of CX quality. This is the area where our survey recorded the lowest positive customer feedback (40%)
- Customer interactions with insurance agents. In Singapore, insurance agents and brokers are often the main point of customer contact. The study found that Singaporean customers want easy access to insurance agents and rely on them to answer all of their questions. They rated interactions with agents higher than other categories (59% positive feedback), above website and mobile app experiences (56% positive feedback). While there are many different channels available for customers to engage with their insurers, agents aren’t going away anytime soon, bolstering the case for investing in and supporting agents so they can do their job well.
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