SMEs losing faith in insurers during pandemic, industry’s own poll finds

There has been a dip in satisfaction levels about insurers among SMEs, an industry poll has showed.

The Chartered Insurance Institute (CII) said that throughout 2019, 82% of SMEs were satisfied with the service they had received from their insurer, but this figure has fallen to 79% for businesses polled post-lockdown.

Satisfaction levels for SMEs with business interruption insurance, which was the subject of a regulatory test case, was less than for other products with only seven out of 10 content with their cover.

The CII surveyed 1,000 consumers and 1,000 small and medium-sized enterprises (SMEs) in May and September.

The survey asked SME bosses if their business had been affected by Covid-19 and organisations that were significantly impacted by measures to slow the spread of the virus were the least happy about their insurer’s performance relative to their expectations.

The CII said it has identified actions that insurers can take to ensure satisfaction with the profession improves:

1) Speed-up claim handling. Policyholder feedback highlights the importance of insurers not waiting for the legal position to be clarified before paying claims or reaching a settlement where the claim has some merit.

2) Show care and compassion. SME bosses revealed they want to feel they are dealing with compassionate human beings when they submit a claim.

3) Establish an ongoing relationship. SMEs that have seen a change in circumstances, and who have perhaps made a claim, wanted to know if that claim would affect their future premiums.

Matt Connell, director of policy and public affairs for the CII, said: “Clearly insurers need to make changes if they are to maintain trust and build a stronger basis for doing business with SMEs in the future.

“Insurers historically scored very well on showing compassion during a claim. The results of our survey post lockdown suggest the uncertain legal situation left firms less willing to engage with clients and more likely to use more ‘official’ language designed to minimise liability and avoid making concrete commitments.

“It is vital insurers learn lessons from the events of 2020. The watchwords for improving the experience for policyholders and engagement with our profession are speed, compassion and clarity of proposition.”

 

 

 

Exit mobile version