On average, customers wait 10 and a half weeks for insurance pay-outs after a claim.

This is according to research from insurtech firm CoverGenius. It found that customers are left for 74 days, or 2.5 months, without an insurance pay-out after a claim.

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Furthermore, the research found that delays in payment are the biggest source of dissatisfaction among insurance customers. 35% of customers stated that was the case.

However, customers are strong in their resolve as 36% find chasing insurance claims stressful , but refuse to give up. On the other hand, 10% find it so stressful that they do not even make a claim.

Other findings include:

  • 9% of customers doubt they will receive any payment when they make an insurance claim;
  • 18% said chasing an insurance claim was harder work than it needed to be, and
  • Customers would pay more to guarantee instant claims payments, especially for home (44%), car (44%), and travel insurance (30%).

Specific frustrations for customers in making claims and receiving insurance pay-outs are:

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  • The multiple conversations required to give information (29%);
  • Chasing the status of your claim (24%);
  • Delays in waiting for insurer to respond (22%), and
  • Being treated with suspicion by the claims operator (22%)

Angus McDonald, CEO and co-founder of Cover Genius, said: “It’s no secret that the insurance industry has a problem with customer engagement. While insurtechs are using innovation to tackle this problem head-on, many incumbent firms – who don’t have the agility to adapt as quickly – are taking longer to shift old habits, and as a result, the negative customer experience is still there. Customers are wising up, and expect better. E-commerce brands must prioritise customers, and intentionally partner with insurers that understand customer-centricity.

“With customer dissatisfaction so high, there is a public appetite for change. The research shows that customers will pay more for a slicker claims service. Insurers that can put the customer at the heart of their service and expedite the claims process can reap the rewards of customer loyalty, increased renewals, and greater sales.”