Public trust is important if insurers want to maintain strong client relationships, with public opinion of the insurance industry currently low,  read on to learn more about the reputations of insurance brands in the UK and what companies can do to fix them. 

Impact of the COVID-19 Pandemic 

It’s undeniable that the COVID-19 pandemic has been a huge part of degrading the trust between insurers and clients. In the last year, insurers have seen their number of claims increase exponentially. People are filing business interruption claims, indemnity claims, travel insurance claims, and more.

This increase in claims has slowed down processing times for even the most well-intentioned insurers. Customers are having to wait longer to receive their checks, which makes them angry and suspicious. And in a time when stress levels are already at a peak, it can be easy for customers to start to blame their insurance agents for dragging their feet. 

Denied Claims 

In some cases, customers who have filed claims have found themselves facing a denial from their insurance company. This has been most common among business owners who have filed business interruption claims. Insurers have claimed that the policies in question were never meant to cover a global pandemic and have denied the claim.

A recent decision from the Supreme Court has given these customers some relief. A lawsuit the FCA filed determined that insurers must pay the business interruption claims. However, the initial denial and ensuing lawsuits destroyed customers’ belief that their agent is there to protect them.

Dual Pricing

The FCA also announced last year that it intends to eliminate the practice of dual pricing. Under this model, an insurer or broker will reduce premiums for the initial period a client holds the policy. When they renew their policy, however, the insurer will slowly increase the premiums until they reach market values. 

While the lower prices may draw more clients in, the continual price hikes break down that client’s trust. They may begin to feel as though the insurer lying, hiding information, or taking advantage of them. Even if they do keep the policy, being honest with them about the price from the outset is the far smarter choice.

Why Client Trust Matters

Some insurers may be wondering why client trust matters in the first place. After all, as long as everyone fulfils their part of the contract – the client pays their premiums and deductibles and you pay out valid claims – who needs a trusting relationship? But having a trusting relationship with your clients could make or break your business.

When your customers trust you, they recommend your services to other people they know who are looking for insurance. This word of mouth marketing can be far more effective than any ad campaign or email blast you could ever send out. And customers who trust you may be more likely to buy additional policies with you, growing your revenue.

Focus on Your Customers’ Needs 

As the insurance industry works to rebuild customers’ trust, the first thing they need to do is focus on their customers’ needs. At the core, insurance is a sales job, and it’s always tempting to go for that upsell. But if you start trying to sell customers policies they don’t need, they may start to feel like you’re abusing their trust to make more money off of them.

Instead, insurers need to train agents to listen carefully to customers’ needs and meet those needs first. They should always be focused on finding the best policy and best deal for the customer. If a customer asks about an additional policy, agents should be honest with them about both the benefits and drawbacks of that policy.

Stick to Your Word 

The other trap it can be easy to fall into when you’re trying to make a sale is overpromising. Agents and brokers may be tempted to tell customers their company can provide more than competitors can. They may promise rapid claims processing times, large checks, and steady premiums. 

However, while all these promises sound wonderful, agents need to be aware that customers will take them at their word. If an agent says claims will be processed within a week, the more complicated claim that takes a month to process will leave customers wondering why their agent lied to them. It’s much better to be truthful with customers and stick to your word than it is to paint a beautiful picture that couldn’t possibly come true. 

Show Your Expertise

At the end of the day, insurance customers turn to agents because they need expert guidance. Agents and brokers have spent their whole professional lives learning the insurance world. These nuances can be confusing to the average person, and they rely on their agent to give them the best advice available.

Insurers need to be sure they deliver on the expertise front for their customers. Their agents should be able to provide expert advice about which policies to get. That should also include advising against getting unneeded policies.

When customers see that agents know what they’re talking about, they’re more likely to trust the information they’re getting.

Change the Reputations of Insurance Brands in the UK

Right now, public opinion of the insurance industry is as low as it’s ever been, and it’s not hard to see why. Everything from dual pricing policies to denied and delayed claims has broken down customers’ trust in their insurers. Companies looking to change the reputations of insurance brands in the UK will need to refocus on customers’ needs and give honest, expert opinions.

If you’d like to start rebuilding a trusting relationship with your customers, check out the rest of our site at Gallagher Basset. We guide, guard, and go beyond to protect you, your company, and your clients. Contact us today and become a part of the future of the insurance industry.