How the automotive insurance claims experience affects customer retention

The authors were commissioned to carry out a study of the way in which the experience of automotive insurance companies of claiming after an accident affected their attitude to companies and their subsequent loyalty. A consumer omnibus study was used to identify relevant market segments and to provide an estimate for the overall number of claims. This indicated that under half of all motorists had claimed on either their own or on another driver's insurance. A telephone questionnaire was then used to determine customers' actual experience of the claims process and their attitudes to insurance companies and to car insurance in general. Three hundred telephone interviews were conducted with motorists using a bought-in list of drivers. These respondents were distributed throughout the UK. There was an equal split of men and women drivers. All those interviewed were responsible for arranging and purchasing their own motor insurance. The study found that whether a replacement car was provided and the standard of the replacement car had a strong effect on customers' subsequent loyalty. It also identified many aspects of the automotive claims experience that could be improved to the benefit of both customers and insurers.