Emerging Insights #2
Theme: client value
Source: Cooperative Insurance Company, Kenya
High client satisfaction with microinsurance does not guarantee success
Client feedback is necessary to improve insurance products and ensure quality service; however, it should be just one source of information and cannot replace more detailed market analysis and effective processes to remind clients about renewals. Client satisfaction results reflect preferences of those who are currently served and do not guarantee that others will respond to the same product in a similar way, i.e. purchase the product and have a positive experience.
A rigorous client satisfaction survey conducted by Cooperative Insurance Company (CIC) and Swedish Cooperative Centre showed that almost 80% of clients covered by a composite product were satisfied, and 60% stated that they would definitely renew their policy. CIC was happy about these results, but the low take-up and renewal rates were contradictory. If people are so satisfied, why doesnt this translate into greater demand for the product? Those discrepancies might be explained by lack of information, renewal incentives and follow-up from delivery channels.
For more on client satisfaction and CIC, click here.