Insurers in Hong Kong and Singapore have work to do if they are to deliver a top-tier digital customer journey, according to a report by Sia Partners.
Sia Partners looked at the online customer journey for motor and property segments in its ‘Non-Life Insurance Customer Journey Benchmark 2023’. The report ranked 111 companies and 257 customer journeys across 11 countries.
In Singapore and Hong Kong, “Very few exceptions present good overall scores,” Sia Partners said. In comparison, Australia performed well — coming third in the rankings overall.
The management consulting firm, which specialises in digital transformation, assessed the user experience of the websites and apps of insurance companies with a focus on navigation, simplicity and look, standard features and user support.
All tests were done using smartphones, with scores assigned based on how effectively digital aspects worked together to benefit users. When appropriate, Sia Partners tested both online and app versions and the final assessment was based on the greater of the two scores.
Nine companies from Singapore and 13 from Hong Kong were included in the benchmark.
But, while Sia Partners classified the performance of companies in Hong Kong and Singapore – as well as Luxembourg – as lagging others throughout the industry, the consultancy also said that most companies in those territories perform well compared to the level of digitalisation expected in 2023.
Hong Kong
The Hong Kong companies included in the benchmark were AIA, Allianz, AXA, Bank of China, Blue Cross, China Ping An, FWD, Generali, HSBC, Kwiksure, Liberty Mutual, MSIG Insurance (Hong Kong) and Prudential.
“’Upon comparing the foremost insurance companies with the underachievers in Hong Kong, it is evident that there is substantial scope for enhancement in all categories for the latter,” Sia said.
AXA ranked first, HSBC second and Bank of China was in third place. Liberty Mutual obtained the lowest score of the ranking in Hong Kong, with Kwiksure slightly ahead.
“’During the customer acquisition journey, only AXA and Generali in Hong Kong provide clear information on the online claims journey,” the consultancy said. “AXA not only achieved the highest overall score, but also earned the highest scores for car and home insurance categories.”
Singapore
The Singapore companies included in the benchmark were Chubb, Ergo, FWD, Great Eastern, Liberty Mutual, MSIG Insurance (Singapore), NTUC, Singlife and Tokio Marine.
NTUC ranked first thanks to its browsing information score, price simulation and subscription capabilities. In Singapore, unlike in Hong Kong, Liberty Mutual ranked in third place, while Ergo ranked last, after Singlife and Chubb.
“NTUC and FWD score better than their competitors not only in the overall score but also both in car and home insurance separately,” said the consultancy firm. “Although FWD provides a better customer journey for car insurance, NTUC has a higher score for home insurance and overall performance,” it added.
“Chubb, Singlife and Ergo lag behind their competitors by not providing a price simulation or online subscription options. Moreover, Ergo’s browsing information scores lower than the other two,” Sia Partners explained.
Australia
Australia performed well in the survey, finishing just ahead of Ireland in third overall, with a total aggregated score of 65.4.
NRMA Insurance ranked first among the eight companies assessed, with high scores for its user interface and the browsing information available, although GIO (the Government Insurance Office) also did well.
“NRMA does well across all categories, although GIO outperforms them in price simulation, while Allianz achieves the highest score in user experience,” said Sia Partners.
Allianz came in second place in Australia thanks to one of the country’s best user experience (UX) scores but subpar browsing information scores that lowered the total score. On the other hand, WFI ranked last in Australia, followed by QBE Insurance and AAMI (Australian Associated Motor Insurance).
“Australian insurers excel in online customer journey, but WFI falls behind with no price simulation, online subscription options, or claims information, putting them behind other Australian insurers,” said Sia Partners.
Suncorp and RAC were also included in the benchmark.
Best practices
According to Sia Partners, best practices for online customer journeys include a concise synopsis of the topics covered and not covered by policies and clear explanations of the factors that affect premiums.
In the simulation process, it is important to allow for the automatic retrieval of information on insured goods, such as chassis number or engine type for cars, or the flooding history of a house, as well as giving users access to commands that allow them to provide additional information for the quotation process.
The same applies to the subscription process, for which giving the option of selecting a payment date is considered a best practice.
Finally, regarding claims, Sia Partners recommended insurers provide customers with access to clear explanations of the claims process and follow-up procedures.
