Here are some customer satisfaction metrics that might be useful in evaluating life insurance companies in India. I have taken 2 metrics to measure the same:
- Customer Churn ( Percentage of policies lapsing after Year 1)
- Customer complaint resolution
Looking at the customer complaint resolution data actually surprised me !
From the above data, one can infer that:
- There is not much to compare between the performance of different life insurance companies in India.Most of the insurance companies have been proactive in resolving customer complaints. “What gets measured” improves!
- Religare Aegon and Birla Sunlife seem to be the only outliers. Religare Aegon looks particularly bad in this respect.
Now lets look at customer churn. This measures number of policies that “lapse” after one year. This might give us a clear indication of mis-selling by the insurance companies as well as customer loyalty.
Clear LEADERS emerge here:
- LIC of India is doing very well despite such a large customer base. Even SBI Life Insurance is doing a good job of customer retention.
- Among private insurance companies, HDFC Life is much ahead of the competition
- ICICI PruLife is the worst with 40% of customers churning out!
This data also proves that cheapest is not always the best! Now we know why many insurance companies don’t like to share this customer satisfaction data with their customers. It hurts!