Nordic Insurance Company performance The customer view on quality and value

This article aims at presenting some results from the annual Pan-Nordic benchmark study on customer satisfaction and loyalty in the insurance sector. Focus is on results from the study in the fall 2007 and comparisons with the longer term trends. The study is based on the EPSI (European Performance Satisfaction Index) initiative and overall approach developed within this framework. The indicators given by the actual customers offer insight into the functioning of the insurance industry in the Nordic countries, as well as how individual companies perform in relation to their respective customers. From the empirical results it is found that customers are relatively satisfied in the industry (compared to the economy as a whole). It is further seen that the image of most insurance companies is low, as well as the value for money determinants. Customer loyalty with the current insurance company varies quite a lot between the Nordic countries, as well as between individual companies within the same country. Overall, the satisfaction index is a good forward looking indicator of actual retention (loyalty to the current insurance company). From the analysis it is possible to point out the main drivers for increasing satisfaction and loyalty. These vary significantly from one company to another, illustrating that the customer base characteristics also vary between companies, as well as do the perception of the deliverables for individual insurance companies.