A recent study conducted by the Insurance Regulatory Authority (IRA) has revealed that 25% of insurance customers in the country are dissatisfied with their insurance providers and the services they receive.
This study, which assessed policyholders’ satisfaction, surveyed 289 customers across eight major cities in the country, including Kampala, Masaka, Mbarara, Fort Portal, Gulu, Soroti, Mbale, and Jinja. The overall satisfaction level reported by policyholders was approximately 74%, indicating that dissatisfaction levels stand at 26%. When examining specific aspects of satisfaction, the study found that 77% of respondents were satisfied with the premium payment processes, while 8% were dissatisfied, and 15% were neutral.
In terms of customer service, 72.8% of policyholders expressed satisfaction, while 14% were dissatisfied, and 14% had neutral feelings. Additionally, 64% of respondents were content with the communication received from their insurers, while 16% were dissatisfied, and 15% had neutral sentiments.
Among policyholders who had lodged at least one claim, 68% reported satisfaction with the claim processes, while 24% were dissatisfied, and 8% had neutral views. In terms of complaints handling, out of 118 policyholders who had submitted complaints, 51% were satisfied, 36% were dissatisfied, and 11% were neutral.
The factors contributing to high levels of satisfaction included fair pricing of insurance products, just compensation payments, strong customer-insurer relationships, the availability of new insurance options, efficient claims management, and insurance policies tailored to meet policyholders’ needs.
Premium payment processes and customer service received the highest satisfaction ratings, while complaint handling and claim processing received the lowest ratings.
Some of the key challenges identified by policyholders included delays and non-payment of claims, insurers failing to provide regular updates, lack of notification of premium receipt, agents lacking sufficient knowledge, and policyholders having limited awareness of their rights, obligations, and benefits.
During the survey release, Al Haj Ibrahim Kaddunabbi Lubega, the CEO of the Insurance Regulatory Authority, emphasized the importance of customer satisfaction in the insurance industry. He noted that satisfied customers are more likely to remain loyal and recommend the insurer to others, while dissatisfied customers can influence others negatively. He urged insurance companies to prioritize customer satisfaction.
Kaddunabbi explained that the survey aimed to gauge the satisfaction levels of insurance services in the country and identify areas for improvement. While the average satisfaction score was 74%, he expressed the desire for higher levels of satisfaction in the future and emphasized the need for continuous improvement in the insurance sector.
