ItÃ¢â‚¬â„¢s interesting to see that customer satisfaction in the finance and insurance sector apparently reached an all-time high in the fourth quarter of 2006. According to the latest University of Michigan American Customer Satisfaction Index, every industry except one in this sector improved its customer satisfaction ranking. The sector includes commercial banks and property and life and health insurance. In the aggregate, finance and insurance jumped 2.7 percent to 76, its highest score since 1994 (78.5). Improvements in quality and value drove customer satisfaction gains for life and health insurance. However, we note that property and casualty insurance was the odd one out with a customer satisfaction ranking of 78 — unchanged from the previous yearÃ¢â‚¬â„¢s ranking. The index measures customer expectations, perceived quality and perceived value of companies in various industries.Ã‚
In todayÃ¢â‚¬â„¢s increasingly competitive marketplace, itÃ¢â‚¬â„¢s not surprising to hear thatÃ‚ a satisfiedÃ‚ customer is not necessarily a loyal oneÃ‚ when it comes to insurance. How to attract new customers and retain existing ones is an ongoing challenge for this industry, as any other. In their inaugural World Insurance Report, consulting group Capgemini and the European Financial Management & Marketing Association (EFMA), offer insurers tips on how to better meet customer needs. The report throws out some interesting findings. For example, while price is the most important factor overall in choosing an insurance product, the degree of price-sensitivity varies substantially by insurance type and by country. American customers, in particular, also view product and brand/trust as key factors when purchasing insurance. Further, despite customers showing a strong preference for buying insurance via the Internet, the number actually buying online is low.