Transformation Needed in Life Insurance Sector for Customer Satisfaction

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The World Life Insurance study conducted by the consultancy highlights that a significant number of policyholders are dissatisfied, with one out of three finding policy terms too complex, and 27% expressing discontent with arduous application procedures.

Moreover, after policy acquisition, 25% of both retail and group clients express annoyance over prolonged waiting periods, while 23% are disappointed by the lack of accessible self-service features for policy modifications.

The process of claims has emerged as another pain point, particularly due to insufficient digitization. Approximately one-third of retail clients report facing a convoluted claims process, and 27% have cited a lack of empathy during their interactions.

According to the report, the industry is urgently reviewing its customer interaction strategies, mainly because penetration rates are declining in established markets.

“In an environment marked by high inflation and economic uncertainties, there is a tepid interest in conventional life insurance offerings,” observes the report.

Interestingly, even though increased interest rates have buoyed insurers' recent fiscal outcomes, the report warns that any short-term profitability could be overshadowed by long-term sluggish industry growth.

The push towards enhancing customer experience for most insurers is impeded by outdated infrastructure, the hesitance to embrace new technological innovations, and regulatory constraints, as indicated by Capgemini.

Insurers acknowledge the urgent need for modernization, yet merely 41% have succeeded in achieving or surpassing their recent modernization targets. Transforming customer interactions through factors like AI-enhanced human interface and boosting operational efficiency stands as an avenue for regaining the market edge.

“The growth opportunity is vast. It is crucial now to rejuvenate the intrinsic worth of life insurance products,” affirms Capgemini.

The findings of the report are drawn from surveys conducted with consumers and industry executives between May and June.

Published:Wednesday, 23rd Oct 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Clear

Underinsurance Warning Lands at a Critical Time for Farms

04 Aug 2026: Paige Estritori

Fresh insurance industry concern about underinsurance is especially relevant for Australian farmers as rebuilding and replacement costs remain stubbornly high. While the issue is often discussed in relation to houses, the same pressure applies across rural assets: sheds, fencing, pumps, tanks, grain storage, livestock yards, irrigation equipment and machinery can all cost significantly more to replace than they did when a policy was first arranged. - read more

Why Climate Risk Is Back on the Farm Insurance Agenda

28 Jul 2026: Paige Estritori

Australia's general insurance sector has again put natural hazard resilience at the centre of the affordability debate, with fresh industry commentary warning that floods, bushfires, storms and cyclones are continuing to reshape how risk is priced. For farmers, this is not an abstract policy discussion. It goes directly to the cost and availability of farm insurance, particularly for properties with older buildings, exposed machinery, flood-prone access roads, boundary fencing, stored fodder or high-value livestock. - read more

What Allianz’s Farm Cover Revamp Means for Farmers

21 Jul 2026: Paige Estritori

Allianz Australia has refreshed its farm pack insurance, with the updated product announced on 20 July 2026. For farmers and rural property owners, the significance is less about one insurer changing a product and more about what it signals across the broader farm insurance market: insurers are trying to make cover easier to understand while adjusting policy features to better match modern farming operations. - read more

What Bushfire Resilience Ratings Mean for Farmers

07 Jul 2026: Paige Estritori

More Australian insurers are now recognising household bushfire resilience ratings, a development rural and regional property owners should watch closely as risk-based pricing becomes more visible across the insurance market. NAB and CommBank insurance brands have joined the program, alongside existing participants including NRMA Insurance and Suncorp, meaning a significant share of the home insurance market is now engaging with assessed bushfire mitigation. - read more

Cyclone Pool Delivers Relief, But Farmers Still Need to Check Cover

30 Jun 2026: Paige Estritori

The Australian Competition and Consumer Commission's final monitoring report on the cyclone reinsurance pool has delivered a mixed message for rural and regional northern Australia. The pool appears to have helped ease some premium pressure for medium to high cyclone-risk areas, including reductions across home, strata and small business building and contents cover. For farm families and agribusinesses in cyclone-exposed regions, that is welcome news after years of rising costs and limited choice. - read more

El Niño Outlook Puts Farm Risk Planning Back in Focus

23 Jun 2026: Paige Estritori

Australia’s latest El Niño declaration has turned seasonal risk planning into an immediate priority for many rural and regional businesses. The Bureau of Meteorology confirmed El Niño conditions in mid-June, with forecasts indicating the tropical Pacific is likely to keep warming through the coming months and remain a factor until at least the end of the year. - read more

Click for more Insurance News