The UK Insurance Sentiment Index 2024: Product and price

In the following sections, we will unpack the key drivers of unsolicited customer feedback for each type of insurance, exploring both the positive feedback and the challenges that shape consumer perceptions. Our research highlights how customer service, pricing and product are all influencing overall sentiment. Data shows that consumers were very negative towards their General insurers with a Net Sentiment of -37.1%, while Life & Pension managed to achieve a positive Net Sentiment of 7.9%. The contrast between these figures underscores how different customer experiences can be depending on the type of insurance.  

General Insurance: Challenges and Opportunities

In discussions about General Insurance, customers mainly voiced concerns and sought clarity about their insurance products. Motor and home insurance topped these conversations. Customers emphasised the demand for flexible, affordable policy options and expressed frustration with misleading wording, unexpected exclusions, and restrictive terms. These issues eroded trust and lessened the perceived value of the policies.

Pricing and fees also emerged as significant concerns, mentioned in half of all conversations. The lack of affordability due to high renewal increases and unexpected administrative fees contributed to discontent. Customers demanded transparency in pricing, reasonable rates, and rewards for loyalty such as discounts. Additionally, customer service issues, especially complaints about slow response times and poor staff competency and conduct, were frequently cited, further impacting the overall sentiment negatively.  

Life & Pension: A Positive Outlook Amid Challenges

Unlike General Insurance, favourable customer service engagements significantly bolstered the overall sentiment for Life & Pension insurers with customers frequently complimenting the staff for their competency and conduct. The efficiency, helpfulness, and knowledge displayed by staff not only enhanced customer interactions but also positively influenced the net sentiment, particularly around investment products such as pension funds and annuities. Investments emerged as the product most frequently mentioned online and achieved a positive score overall. This appeared to be attributed to the less time-sensitive nature of investment product queries compared to short-term claims, where customers expected a fast turnaround.

However, despite these positive aspects, there were notable challenges. Customer loyalty, while a prevalent topic in public conversations, often carried a negative perception. Pension fund customers actively compared brands on fund performance and fees, underscoring a critical view of the value provided by different insurers.

Pricing or fees, despite only being the seventh most spoken about topic for Life & Pensions, was still influential in driving large negativity. Pension funds were criticised for having high management fees which eroded pension fund value, after poor performance already reduced the fund value. Life insurance customers reported inconsistent pricing among individuals with similar health profiles, raising concerns about fairness. Premiums were often perceived as disproportionately high, especially when based on outdated medical information. Other complaint areas included ongoing premium deductions even after policies were cancelled.

It has become apparent that the insurance industry is at a crucial juncture. The industry's ability to adapt to consumer demands—balancing cost-efficiency with customer experience —is more important than ever. If your firm is facing these challenges, you can discuss it with our insurance team below. You can find the report snapshots for General insurance or Life & Pensions below.