Max Life shares #1 position in private Life Insurance industry with 72% Truly Loyal Customers
The survey seeks to understand customers’ behaviour and loyalty trends
Max Life Insurance Company Ltd. (“Max Life/Company”), has been ranked joint #1 in an independent survey on customer loyalty conducted by Kantar in 2020. The survey reveals that 72% of the customers were truly loyal to the company in the year of the COVID-19 pandemic, the highest in the private life insurance industry in India.
The findings are part of an annual industry-wide customer loyalty study – ‘Insurance India’ conducted by Kantar to understand customers’ behaviour and loyalty trends year on year. This independent survey is conducted through face-to-face interviews with the customers of life insurance policies in the age group of 25 to 55 years, customers are questioned on their experiences and perceptions with one life insurer brand that they own. The latest study concluded in Dec 2020, covered ~6000 customers across multiple cities and life insurance brands (including LIC).
Key Findings Pertinent to Indian Life Insurance Industry as per the Report:
In the year of pandemic, the industry witnessed a drop in absolute Truly Loyal customers %, down from 71% in 2019 to 68% in 2020 (settling back to levels of 2018)
During COVID-19 times, consumers looked for brands with better image on goodwill and reputation
The need for a physical interaction and expert advice strengthened. During the last year, consumers looked forward for more engagement with company advisors
Additionally, ‘Convenience’, ‘Care’ and ‘Engagement’ gained traction
In this extraordinary year, Max life has demonstrated an inordinate focus on digitization, online selling of insurance plans and empathetic customer communication, which has helped it to emerge as the category leader. This year, the Company has led on metrics of Claims Paid Ratio which stands at an all-time high of 99.22% for FY19-20, as per the IRDAI Annual Report, underlining Max Life’s new ‘Bharose ka Number’ for the policyholders. Other initiatives including building perception around ‘Use of Technology’ and ‘Reliability in claims processing’ have also aided the brand to surpass the challenges and remain at par with Customer Loyalty.
Remarking upon the achievement Aalok Bhan, Director & Chief Marketing Officer Max Life said, “Even in a tough year on the back of COVID-19, we are thankful for the trust that the customers have placed in us and are truly delighted to be rewarded with promising customer loyalty. We successfully digitalized our key operations such as sales, policy issuance, claims, servicing – across the entire value chain, making the experience for customers during the pandemic, as seamless as possible. We managed to constantly deliver elevated customer experience by creating ease of access, introducing digital initiatives, and ensuring seamless claims settlement, that helped us retain our customer loyalty. This recognition from an independent survey by a leading firm like Kantar reinforces our commitment to our customers.”
To enhance customer experience during the COVID-19 pandemic, Max Life introduced various digital interventions. These initiatives helped the company address over 4 million digital transactions during this financial year. For instance, WhatsApp has contributed to approximately 22%, while AI based Mili Chatbot has helped resolve nearly 7-8% of the entire digital transaction range enabled by Max Life. In the extremely trying times of COVID-19 pandemic enforced lockdown, personalized claims services were delivered over email, bots, and WhatsApp, continuing to drive customer faith in the brand.
The survey has also helped gather insightful details about customers’ expectations and further recommends 3 actionable insights for the insurance sector: focus on nurturing trust and reliability for customers during these uncertain times, be accessible and closer to the customers by leveraging the Phygital (Physical & Digital) network and deepen customer engagement by removing moments of friction in their journeys.
About Insurance India
The study measured loyalty as % of Truly Loyal Customers’ that is computed from their responses on attitudinal level questions (denoting feeling of being associated with the brand) and behavioural level questions (denoting likelihood of a customer to continue/repurchase the brand) for the brand they own. The drivers of loyalty are derived based on Kantar proprietary ‘Walker model’ which has four components which impact customer loyalty, namely, Imagery (49% derived importance on overall Truly Loyal % score), Experience (24%), Value Perception (17%), and Price Perception (10%).
About Max Life Insurance (www.maxlifeinsurance.com)
Max Life Insurance Company Limited is a Joint Venture between Max Financial Services Limited and Axis Bank Limited. Max Financial Services Ltd. is a part of the Max Group, an Indian multi business corporation.
Max Life offers comprehensive protection and long-term savings life insurance solutions, through its multichannel distribution including agency and third party distribution partners. Max Life has built its operations over almost two decades through need-based sales process, a customer-centric approach to engagement and service delivery and trained human capital.
As per public disclosures, during the financial year 2019-20, Max Life achieved gross written premium of Rs. 16,184 crore. As on 31st March 2020, the Company had Rs. 68,471 crore of assets under management (AUM) and a Sum Assured in Force of Rs. 913,660 crore.
For more information, please visit the Companys website at www.maxlifeinsurance.com.