Reputation Study:
General Insurance Industry
Reputation Study:
General Insurance Industry
Introduction
The COVID-19 pandemic gave the Indian consumer a realisation that they need to ‘future-proof’ their lives and change their perspectives towards insurance in general. The focus on health insurance thus saw a strong growth as stated in the government’s Economic Survey 2022-23. The gross direct premium of non-life insurers (within and outside India) registered a year-on-year growth of 10.8 percent, primarily driven by health and motor segments. Post-pandemic the rulebook across the industry has been rewritten to match the new age customer needs by the introduction of new plans for medical expenses incurred overseas, insurance options for the differently abled, and OPD add-on cover with zero waiting period. OPD cover is the most noticeable offering of the category in recent times.
Digitisation, like any other industry, has propelled the general insurance space as well with digitally savvy consumers finding it convenient to buy insurance online, complemented by the use of AI/ML and high-end technology features. While the numbers are encouraging, experts also hint towards higher possibilities of consolidation as companies start focusing on profitability and not only growth numbers to sustain in the highly competitive space.
While the scenario is optimistic for the general insurance space, the Eminence Reputation Study – a non-financial metric to gauge an organisation’s performance, indicates a moderate score of 26. This score is based on metrics arrived at through a weighted average of four key parameters of corporate reputation. This score is a composite weighted average of stakeholders’ perceptions, right from the customers, to the workforce they employ, shareholders who invest in the organisation’s vision, the perception about the corporate governance practices, and the positive impact the organisation has on society as a whole.
As per the study, the general insurance sector has a positive disposition with new-age product launches, CEOs giving their expert views on the future of the industry, and discussions on technological upgrades. However, concerns about customer service and employee satisfaction pulled down the overall score. Delays in claim settlement or non-settlement of dues were the most prominent pain points of the customers. Given the financial and emotional weight of the hospitalization/illness, customers’ reaction to general insurance companies was unforgiving. Court cases further added to the negative visibility of the industry.
Another parameter that pulled down the score was the concerns expressed by the employees of general insurance companies, on public platforms about unhealthy work culture, imbalanced work-life balance, and low payment. A large part of the grievance was regarding the reporting manager, reflecting a considerable gap in the vision of the company and the on-ground realities.
General Insurance companies need to take cognizance of these realities to better their imagery amongst their stakeholders.
This report is an attempt to bring you an exploratory picture of the general insurance space in India through non-financial metrics of gauging the industry’s progress through the lens of reputation. We hope you will enjoy reading this report and we look forward to receiving your valuable feedback.
Eminence Reputation Score: A comprehensive model capturing multiple reputation dynamics
General Insurance Industry Coverage
January – December, 2022
Data Sources
Social Media Conversations I Employee Reviews I Customer Reviews I Media Coverage
Scoring Scale
POOR
(<0-20)
Moderate
(21-40)
Average
(41-60)
Good
(61-80)
Excellent
(81-100)
Our analysis shows that the overall reputation score of the general insurance industry from
January to December 2022 is 26, representing a moderate score with significant upside potential
Each driver has a defined weightage as per the Eminence Reputation score model
The Reputation Score is based on following drivers
Reputation drivers arranged in descending order of the weightage assigned to each
No Data Found
-77
Customer Experience
No Data Found
100
Responsible Business Practices
No Data Found
90
Brand Exposure
No Data Found
30
Workplace Character
Click on each driver graph for insights
Attributes driving the Positive Reputation Score
Significant role in the launch of innovative policies and focus on ecological footprints, health of customers and employee concerns.
Attributes driving the Negative Reputation Score
Customer Experience
Non-settlement and delays in claims, were the biggest customer concerns that resulted in negative customer reviews.
Efforts taken by insurers for giving a better customer experience received positive mileage. Customers were thrilled when services are provided exactly as promised such as quick approval and reimbursement of claims, timely and hassle-free resolutions, etc.
Efficient and timely communication is critical for insurance providers, especially during personal crises such as accidents, illnesses, or hospitalizations. Slow response times or inadequate explanations for rejected claims lead to high levels of customer distress. In today's highly competitive market, dissatisfied customers may switch insurers after just one negative experience.
In addition to response time, difficulties in contacting executives through provided contact information also caused customer dissatisfaction. For instance, lapses in policy occurs when customers are unable to reach their insurers through the listed email addresses or contact numbers.
Furthermore, technical glitches on insurance company websites that prevent policy renewals have further impacted the general insurance industry's reputation.
Score
No Data Found
Most Prominent Topics
-77
(POOR)
Responsible Business Practices
Regulatory support and regulations coupled with the social initiatives undertaken by the industry, resulted in a positive score.
In 2022, the general insurance industry took initiatives such as mega vaccination drives, supporting quality education for visually impaired children, celebrating pride month, contributing to oxygen plants, and installing water purifiers. These actions positively contributed to the industry's image and demonstrated its commitment to social and environmental responsibility.
The industry also concentrated on other environmental sustainability initiatives, such as raising awareness about the importance of saving water and keeping rivers clean, and celebrating Horticulture Day by distributing saplings.
IRDAI’s support in terms of favorable regulations aided the insurers to launch innovative products, to further strengthen the regulator’s vision of ‘Insurance for all’.
Score
Most Prominent Topics
100
(Excellent)
No Data Found
Brand Exposure
Strong product strategy, leaders’ take on the significance of health insurance and technological advancements had a positive impact on Brand Perception
The industry made significant strides in meeting the changing health and financial needs of customers, positively impacting the industry's image. As per the IRDAI report, the health business is the largest segment of general insurance in India, with a market share of about 36 percent in 2021-22. Industry leaders are educating the public on the significance and growth of health insurance and promoting mental health awareness.
The industry also introduced new plans for medical expenses incurred overseas, insurance options for differently-abled individuals, and OPD add-on covers with zero waiting periods. There was also a focus on enhancing insurance distribution to smaller cities, resulting in more bancassurance tie-ups and partnerships.
Farmers who were underpaid or only received a minimal insurance payout as a consequence of the incident, protested against well-known insurance companies. Additionally, the sector faced a cyber fraud wherein the policyholders were paying less premium, which resulted in a monetary loss to the industry.
Score
Most Prominent Topics
90
(Excellent)
No Data Found
Workplace Character
Workplace politics, lack of employee centrism and work-life balance had a negative impact on the industry
Some of the general insurance companies bagging the ‘Best Place to Work’ award resulted in positive visibility. Employees were offered health insurance coverage for themselves and their families, which was applauded by the workforce. Additionally, transparent management, job security, networking, and travel facility gave a positive workplace experience.
Negative perceptions of the workplace were fueled by senior management's behavior towards subordinates and workplace politics, leading to criticism from employees. The demanding work schedule resulted in a lack of work-life balance and unethical practices to meet targets, further damaging the workplace's image. Despite offering employee benefits such as health insurance for oneself and the family, the sector's lack of focus on employee well-being was evident through changes in rules and regulations without employee consent, including notice periods and weekly offs.
Score
Most Prominent Topics
30
(Moderate)
No Data Found
Potential Reputation Risks
As a highly competitive and rapidly growing sector, the insurance industry in India faces significant pressure to acquire new business. However, this emphasis on growth has resulted in the neglect of employee satisfaction and well-being. The lack of work-life balance and unethical practices to meet targets have tarnished the industry’s reputation.
It is essential for the industry to prioritise creating a positive work environment that values employee centrism. Negative reviews on public platforms, especially from on-ground/sales executives, can significantly damage the industry’s perception and hinder the acquisition of new business. By prioritising employee satisfaction, the industry can create a more conducive work environment, leading to happier employees and positive brand ambassadors.
Social media has become a powerful tool for customers to voice their opinions and negative experiences with general insurance companies. Slow response times from executives and inadequate explanations for rejected claims despite multiple follow-ups have resulted in a significant number of negative reviews. While digitisation has helped in better understanding customer needs, it has also led to delays in the claim settlement process, leading to customer grievances.
To address these challenges, insurers need to shift from being mere payers to being partners in the lives of their customers. This requires offering hyper-personalized and tailor-made products based on customer behavioral trends and leveraging technology to reduce errors and pressure on the workforce.
Recommendations
Banks are launching new products, while customers are still grappling with the existing products. Closing the service gap is essential for a smoother customer experience. Customers are putting their grievances on public platforms, that reflect a disparity in the flawless user experience committed by the banks. A focus on educating customers on better usage of digital platforms can mitigate the concerns.
The buzz around sustainable practices has increased, and the narrative is mainly steered by foreign banks. Private banks and more importantly, PSBs should increase their focus on ESG in order to remain relevant to the stakeholders, especially the environment conscious future customers.
Employees are the biggest brand ambassadors and turn into loyal customers when given a positive experience. While a lot has been done by the banks in terms of workplace best practices, negative reviews on public platforms reflect a high level of discontent amongst the personnel. This needs to be addressed as a priority for banks to continue being among the preferred sector by the current and potential workforce.
Concept & Methodology
This one of its first-of-its-kind, holistic Reputation Measurement Score is based on globally accepted parameters. The dashboard offers a complete view of an organization’s reputation across its stakeholders. Since a multitude of factors influences corporate reputation, an exploratory study was conducted across CEOs and CXOs to understand the most impacting elements of reputation. Internal focus group discussions (FGD) were conducted with the objective to identify a comprehensive list of factors affecting corporate reputation. The identified reputation drivers, hence, are a result of well-researched ideas and feedback from this stakeholder group and secondary research sources.
The General Insurance companies for the study were based on parameters such as market share and media visibility score. The study takes into account 50+ data variables, 10,000+ business-responsible conversations across news & social media, and 1000+ customer & employee voices. The score is arrived at based on scientifically designed weights and statistical algorithms, corroborated by research experts.
50+
Data Variables
10,000+
Business responsible conversations across news & social media
1,000+
Customer & employee voices
The score is arrived at based on scientifically designed weights and statistical algorithms, corroborated by research experts.
Team Eminence
Extensive experience in Branding, Communications, Brand Research, and Data Analytics.
Experienced professionals, having worked in business categories like Banking and Financial Services, IT, FMCG, Entertainment, Automobiles, Telecom, Manufacturing, Credit Ratings, etc.
A diverse mix from the fields of Journalism, Economics, Brand Research, Media Measurement, forms a strong force of individual and collective knowledge base for our clients.
Mitu Samar, Founder & CEO of Eminence, is a seasoned reputation consultant with two decades of experience. After having worked with well-known companies across BFSI, Credit Ratings & Logistics, she founded Eminence Strategy Consulting (https://eminencestrategy.com/), thus facilitating organizations and individuals in building, establishing, and protecting their reputation through stakeholder engagement.
She serves as an independent director on the boards of the Times Internet Limited and Aegon Life Insurance.