Gracechurch recently unveiled the latest insurer service numbers from their UK Insurers Monitor, conducted in partnership with BIBA.
Recent findings highlight a significant improvement in service quality, with the market average Net Promoter Score (NPS) rising by 9 points since mid-2024, bringing the index average to +12.
By the end of 2024, the best-performing carrier had an NPS score of +38, while the lowest-performing carrier had an NPS score of -20—a significant improvement from mid-year 2022, where the lowest performer had an NPS of -52.
The lowest-performing carrier’s recent NPS score matches the UK average from mid-2022, indicating that while the best is improving, the worst in the market are also making progress.
These are some of the ways that service helps Insurers create edge:
In a softening market, Insurer premiums will be lower, meaning that Insurers will have to find other ways to stand out; service creates that competitive edge.
Good service can help Insurers better meet broker needs, which are always changing. According to the Gracechurch, brokers give top priority to price, quality of cover and service: With it being hard to win on price and cover often undifferentiated, service becomes the deciding factor in broker choice of Insurer.
The best insurers demonstrate Service superiority points (‘SSPs’), key traits that set the best insurers apart on service.
These traits include Speed of service/ responsiveness, being easy to work with, accessible underwriters/ easy to contact, being relationship-focused, having the willingness to help / find a solution and upholding a Friendly, good attitude. These SSPs serve as a framework of what good service looks like.
In terms of what good service looks like, one UK Broker said: “Insurers are aware of their customers; they seem to have more of an enhanced customer service. You seem to get more of a response than with other insurers.”
Gracechurch’s data also reveal that market average service ratings have increased by 11% since 2022, now at a record high.
This could be due to a number of factors:
- Regulatory pressures. Consumer Duty, introduced by the FCA in 2023, sets a new standard for consumer protection by requiring financial businesses in the UK to “act to deliver good outcomes for customers”.
- As service is improving, broker expectations are also rising and increased competition for business means a much stronger focus on ‘service effort’.
From a regional perspective, the overall performance of insurers has improved across most regions, with Manchester/Merseyside performing the best and London/SE the worst. Manchester/Merseyside also outperformed London in all aspects of service by 5%.
Lastly, market performance across service metrics shows that good service looks different for each of the top carriers on NPS, and service within the market isn’t always a one-size-fits-all model. For example, some Insurers excel in collaboration, knowledge, and flexibility versus their competitors.