One in Four Customers Dissatisfied With Their Insurer, Study

A study by the Insurance Regulatory Authority(IRA) has indicated that one in four customers are dissatisfied with their insurer and the services they get from them.

According to the policyholders' satisfaction study which surveyed 289 customers across eight major cities of the country; Kampala, Masaka, Mbarara, Fort Portal, Gulu, Soroti, Mbale and Jinja, policyholders reported overall satisfaction level of about 74%.

This means the dissatisfaction levels are at 26% whereas in respect to individual parameters of satisfaction, high level of satisfaction was reported with premium payment processes (77%), 8% were

dissatisfied and 15% were neutral.

On the other hand, 72.8% of policyholders were satisfied with customer services, 14% were dissatisfied and 14% were neural whereas 64% were satisfied with the communication from their insurers, 16% dissatisfied and 15% neutral.

Out of 130 policy holders who had lodged at least a claim, 68% were satisfied with the claim processes, 24% were dissatisfied while 8% were neutral.

In terms of the complaints handling process, out of 118 policyholders who lodged in complaints, 61(51%)were satisfied , 43 (36%) were dissatisfied and 14 (11%) were neutral.

The most outstanding drivers of satisfaction cited included; proper pricing of insurance products, Fair and just payment of compensation, maintaining good relationship with the insured or policyholders, offering of new insurance packages, quick claims management and Designing insurance policy based on requirement and request of the insured.

Generally, policyholders rated their satisfaction highly with premium payment process followed by customer service while complaint handling and claim handling were rated lowest.

The notable outstanding challenges that were faced by policyholders included delayed and nonpayment of claims, failure by insurers to provide monthly or annual updates, lack of notification of premium receipt, agents lacking sufficient knowledge, policy holders having limited knowledge about their rights, obligations and benefits.

Speaking during the release of the survey, the Insurance Regulatory Authority (IRA) CEO, Al Haj Ibrahim Kaddunabbi Lubega said there is room for improvement for players in the insurance sector.

"It has become evident that one when you have a customer who is satisfied, he will come back to your company and buy more of that brand that satisfied him. Also, a customer who is unhappy will in many cases inform 15 or more people about their not being happy with your brand or product. You must at all times fight to satisfy the customer before he moves out of your office," Kaddunabbi.

"It is high time insurance captains ensured customers are satisfied before they move out of their insurance companies."

Kaddunabbi said the survey was informed by the desire to measure the satisfaction levels of the insurance services offered in the country and see where improvement is needed.

He noted that whereas the average satisfaction levels are at 74%, this is not enough.

"I am not happy with the average score of 74% because this is way below the expected good marks. However, it is the beginning and will inform our next study and we will want to know whether we are improving or declining," he said.