Transformation Needed in Life Insurance Sector for Customer Satisfaction
Why Insurers Must Evolve to Meet Changing Client Expectations
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Insurance companies in Australia and other developed economies are grappling with meeting the evolving demands of clients, reveals a recent report by Capgemini.
The World Life Insurance study conducted by the consultancy highlights that a significant number of policyholders are dissatisfied, with one out of three finding policy terms too complex, and 27% expressing discontent with arduous application procedures.
Moreover, after policy acquisition, 25% of both retail and group clients express annoyance over prolonged waiting periods, while 23% are disappointed by the lack of accessible self-service features for policy modifications.
The process of claims has emerged as another pain point, particularly due to insufficient digitization. Approximately one-third of retail clients report facing a convoluted claims process, and 27% have cited a lack of empathy during their interactions.
According to the report, the industry is urgently reviewing its customer interaction strategies, mainly because penetration rates are declining in established markets.
“In an environment marked by high inflation and economic uncertainties, there is a tepid interest in conventional life insurance offerings,” observes the report.
Interestingly, even though increased interest rates have buoyed insurers' recent fiscal outcomes, the report warns that any short-term profitability could be overshadowed by long-term sluggish industry growth.
The push towards enhancing customer experience for most insurers is impeded by outdated infrastructure, the hesitance to embrace new technological innovations, and regulatory constraints, as indicated by Capgemini.
Insurers acknowledge the urgent need for modernization, yet merely 41% have succeeded in achieving or surpassing their recent modernization targets. Transforming customer interactions through factors like AI-enhanced human interface and boosting operational efficiency stands as an avenue for regaining the market edge.
“The growth opportunity is vast. It is crucial now to rejuvenate the intrinsic worth of life insurance products,” affirms Capgemini.
The findings of the report are drawn from surveys conducted with consumers and industry executives between May and June.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
Australias general insurance sector is facing a proposed step-up in accountability, with the Insurance Council of Australia opening consultation on a new draft General Insurance Code of Practice on 24 June 2026. For truck owners, small fleet operators and transport businesses, the most relevant shift is not just the wording of the code, but the possibility that parts of it could become contractually enforceable for the first time, subject to ASIC approval. - read more
New market data points to a meaningful lift in Australians taking out individual income protection insurance, suggesting more households are reassessing how they would manage financially if illness or injury interrupted their pay. - read more
A recent sanction against an unnamed life insurer has put claims handling back under the spotlight, particularly for Australians who rely on personal insurance as a financial safety net. The Life Insurance Code Compliance Committee found that the insurer failed to request required information from claimants at the earliest available opportunity, contributing to significant delays for some customers waiting on claim decisions. - read more
The Insurance Council of Australia has released a draft General Insurance Code of Practice for feedback, marking a significant step in the industry’s push to strengthen customer protections. Released on 24 June 2026, the draft is open for consultation until 21 July 2026 and is designed to make key obligations legally enforceable through insurance contracts. - read more
A new specialist insurance product for Australian crane and rigging operators is a timely reminder that not every business fits neatly into a standard policy box. ARTes Specialty, working with wholesale provider Mobius Insurance, has launched an integrated crane and rigging policy for the local market, adding to its earlier Australian offerings for commercial loggers and contractors plant and equipment. - read more
The latest NSW Budget has reignited debate over the Emergency Services Levy, with insurance industry concern growing that escalating collection forecasts are strengthening the case for reform. For households and businesses already managing higher premiums, the issue is more than a line item in the state accounts. It goes directly to affordability, underinsurance and whether the cost of funding emergency services is being shared fairly. - read more
Those who work the land know that every farm has its own heartbeat - its unique rhythm defined by the crops it yields, the livestock it nurtures, and the natural environment it exists within. Recognizing this individuality is crucial, especially when it comes to safeguarding your agricultural investment with the right insurance policy. - read more
Farming is a vital part of New Zealand's economy and cultural heritage, representing a way of life for thousands across the country. With its unique landscapes and diverse climate, New Zealand farmers are renowned for producing a wide array of high-quality products that serve not only the nation's needs but also supply a multitude of international markets. - read more
New Zealand's farming community forms the backbone of its thriving agricultural sector, yet many overlook the critical importance of proactive estate planning. With farmland often being held within families for generations, securing its future is not just a financial concern, but a deeply personal one as well. - read more
In the heart of New Zealand's pastoral verdure, the significance of preparedness for natural disasters is paramount for the farming industry. The distinct landscape, while providing an idyllic backdrop for agricultural pursuits, is not without its challenges. Farmers are often at the mercy of nature's unpredictability, making disaster preparedness not just prudent but essential for the continuity of their livelihood. - read more
Need a Quote?
Start your free farm insurance quote comparison here.
Knowledgebase
Term Life Insurance: A type of life insurance policy that provides coverage for a specified period, such as 10 or 20 years.
No comments yet. Be the first to share your thoughts.