Short-term insurance industry satisfaction levels remain constant

Corporate News

Short-term insurance industry satisfaction levels remain constant

Published: 08 April 2014

SA consumers gave the short-term insurance industry an overall satisfaction score of 78.6 out of 100 according to the South African Customer Satisfaction Index (SAcsi). This score is 0.8% higher than last year's satisfaction score, indicating a consistent satisfaction score from last year to this year.

The SAcsi surveyed 3 559 randomly selected customers of Hollard, Mutual & Federal, OutSurance and Santam. Santam has set the national benchmark again this year with a satisfaction score 2.2% above industry average, but has shown no change from last year to this year. Mutual & Federal, that shared the industry leader position last year, is now on par wth the industry average with its satisfaction score having decreased slightly by 1%. OutSurance has increased its satisfaction score from last year to this year by 3.4% and is on par with this year's industry average. Hollard has also increased its satisfaciton score by 4.8%, but is below industry par by 3.4%; a postitive change from last year's score which was 6.6% below industry par.

"Santam's customers have the highest expectations relative to expectations of the other brands measured in the industry, and Santam has managed to maintain its high satisfaction score by consistently meeting these high expectations," says Prof. Adré Schreuder, founder and chair of the SAcsi. "Hollard has shown some good improvement, and with continued efforts, Hollard will be certinly be able to move out of its 'below par' ranking." explains Schreuder.

The results showed no significant difference between consumers who interacted directly with their short-term insurer and those who intercted indirectly through a broker.

The SAcsi is an independent national benchmark of customer satisfaction of the quality of products and services available to household consumers. Companies are selected for inclusion based on market share and the random sample includes a desired minimum of 270 respondents per company. Each month, customer satisfaction results are released for a different collection of specific industries.

International comparison for life insurance industry

SAcsi is the only South African company to hold a license with the American Customer Satisfaction Index (ACSI) and now forms part of a growing group of country license partners worldwide. "This partnership allows the SAcsi to benchmark South African companies against international equivalents," explains Schreuder.

The international short-term Insurance Industry benchmark is set by the US at 81 out of 100. SA tied second interanationally with Indonesia, ahead of the UK, South Korea and Singapore.

The SAcsi delivers detailed industry benchmark reports to subscribing member companies to provide strategic guidance and insights for improving overall customer satisfaction. Executive summaries of the SAcsi scores for all measured companies are available on www.sacsi.co.za.

The 1 267 sample for the short-term insurance industry gives a 2% error margin at a 90% confindence level.