NEW RESEARCH: Majority of UK customers prefer speaking to a person on the phone about their insurance

• 56% of UK insurance consumers said they would prefer to speak to someone on the phone about insurance services.
• 38% of consumers aged 25-34 view a mobile app as their current preferred means of interacting with an insurer.
• On average, insurers expect to increase tech investment by 35% over the next two years.

LONDON – 6th July 2023 – A significant majority of UK consumers (56%) prefer to speak to someone over the phone about their insurance. This is according to new research from Ensono, an expert technology advisor, innovation partner and managed service provider.

The research surveyed 500 senior IT decision-makers (ITDMs) working for UK insurance companies, and 500 UK insurance customers. It asked customers to rank their preferred channels for interacting with their insurer today:

1. Speaking to a person on the phone (56%)
2. Email (41%)
3. Speaking with a person online (34%)
4. Mobile app (27%)
5. Self-service customer website (20%)
6. Chatbot (10%)
7. By phone with an automated voice response (7%)

The findings from Ensono – a trusted partner to insurance industry stakeholders – highlight the need for insurers to invest in the modernisation and optimisation of the technology infrastructure behind channels run by human agents, so they remain reliable and trusted ways for customers to get in touch with their insurer. At the same time, there are opportunities to develop newer and increasingly automated channels, continually improving and engaging customers about the benefits available to them.

Looking ahead, 37% of IT decision-makers expect to see less demand in the future from customers for human advisors over the phone or in person. The overall sample of customers, still ranks speaking to a person on the phone (51%) as their top preference in the future for interacting with insurers. However, there are signs across the different age groups of a longer-term shift to digital. Amongst insurance customers aged 25-34, 38% view a mobile app as their current preferred means of communicating with their insurer and accessing their services,  the same figure as for the 45-54 age bracket. Looking to the future, 45% of 45–54-year-olds think a mobile app will be their favoured way of interacting with their insurer.

Connecting with customers

Tech investment is front of mind for UK insurers, with 39% expecting an increase in tech investment in the next two years. On average, they expect a 35% increase in tech investment over the next two years. For this investment to be effective, the industry needs to get the fundamentals right in their internal approach to technology. When asked what is preventing them from delivering their technical strategy, almost a quarter of ITDMs (23%) pointed to poor frontline user adoption of new technologies.

“It is important that insurers’ plans for transformation do not lose track of what the modern insurance consumer actually wants from their provider,” commented Steven Jones, Consulting Director at Ensono. “Customers clearly are committed to human-human contact when managing an insurance policy. Insurers need to make sure that these core channels are not neglected, and they continue to provide a reliable and trusted service to support customers’ needs.

“Tech investment should be targeted at modernising their tech stack, and steadily growing new and innovative solutions. Insurers can use technology like data analytics to learn an individual’s preference over time and deliver a consistent, personalised and impactful policyholder experience across all channels they interact with the insurer. This will also help to manage pressures on in-person teams, rapidly identifying customers who require contact with a person and those who can be best served through other channels. Whether it is a new customer app or chatbots, insurers should take steps to educate customers on the use of new tech – offering them opportunities to trial it and see whether it is right for them.”

To find out more about the research, access the executive summary here: https://www.ensono.com/insights-and-news/white-papers/executive-summary-strategies-for-winning-the-battle-for-the-policyholder/  

*Editor’s note: Ensono surveyed 500 senior IT decision-makers at UK insurers with revenue of £250m+ and 500 consumers across the UK who have previously taken out insurance.

About Ensono

Ensono is an expert technology advisor, innovation partner and managed service provider. As a relentless ally, we specialize in helping enterprise clients transform their organization, innovate new and disruptive technologies and optimize their IT operations to achieve better business outcomes. Our dedicated team works across hybrid environments with services that span consulting, mainframe and application modernization, public cloud migration and cloud-native development. With certified experts in AWS, Azure and Google Cloud and recognized as Microsoft Datacenter Transformation Partner of the Year, Ensono has over 2,900 associates globally and is headquartered in greater Chicago. For more information, visit Ensono.com.

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