There is a need for insurers to pivot or refresh their CX strategies to enhance competitiveness.
The overall customer experience (CX) quality in Singapore’s home and auto insurance sector remained flat in 2023 with an index score of 61.9, according to Forrester.
In Forrester’s Singapore Auto And Home Insurance Customer Experience Index (CX Index) Rankings 2023, the sector showed steady improvement from 2018 to 2021. However, it faced a setback in 2022. Furthermore, there were no statistically significant score changes among individual insurance brands.
Limited differentiation in CX quality. Over the past two years, CX Index scores for Singapore’s home and auto insurance brands have closely clustered within a 3 to 4-point range of each other.
This lack of differentiation suggests stagnation in CX across the industry, emphasising the need for insurers to pivot or refresh their CX strategies to enhance competitiveness.
Key CX quality areas impacting loyalty. The areas of ‘communication,’ ‘premiums, rates, and fees,’ and ‘agents’ have the most significant influence on customer loyalty.
Effective and clear communication is crucial for Singaporean customers, but only 45% believe their insurance company excels in this aspect.
Competitive pricing and transparent policy costs that align with customers’ budgets are also vital factors shaping CX perceptions, with this category receiving the lowest positive customer feedback (40%).
Customer interactions with agents received a higher positive feedback rating (59%) compared to website and mobile app experiences (56%).
AIG emerged as the top insurer in CX. AIG achieved a CX Index score of 64.2, improving by a statistically insignificant 2.1 points. This score reshuffled the rankings and placed AIG at the forefront, marking the first time the US-based insurer has led the CX Index since 2019.