Customer Satisfaction Data for Life Insurance Companies in India

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 !

Complaints Recd Resolved Percentage
Aegon 3440 2774 80.64%
Bharti AXA 7310 7285 99.66%
Aviva 13520 13467 99.61%
HDFC Life 35218 35205 99.96%
Edel TOKIO 6 6 100%
Bajaj Allianz 22390 22388 99.99%
Kotak 8850 8844 99.96%
SBI Life 18490 18482 99.96%
Birla 11911 11632 97.66
ICICI Pru 22016 22016 100%
Max Life 10362 10360 99.98%
LIC 52300 52135 99.68%

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.

2010-11 2011-12
Aegon 8.70% 17.40%
Bharti AXA 18.90% 36.10%
Aviva 31.00% 27.80%
HDFC Life 5% 4.20%
Edel TOKIO 0% 0%
Bajaj Allianz 10.70% 21.40%
Kotak 11.60% 16%
SBI Life 6.60% 9.40%
Birla 71.60% 51%
ICICI Pru 46.50% 41.90%
Max Life 13.3 12.60%
LIC 4.90% 5%

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!

 

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