19 May 2022
Online and Digital Services Are Key to Success in Pet Insurance
Pet insurance is a competitive sector, with dozens of providers vying for customers’ business.
At Fairer Finance, we poll thousands of pet insurance customers each year to discover what they look for in a provider.
Our data show that pet insurance is distinct from other types of insurance, such as travel insurance, car insurance and home insurance, in that customers are more likely to make a claim.
This has two important implications.
First, it means that having good customer service is relatively more important for pet insurers, because pet insurance customers are more likely to interact with customer service teams.
Our polling data back this up, showing that price is less of a deciding factor relative to customer service for pet insurance compared to other types of insurance.
The second implication is that having a good website and app is relatively more important for pet insurers, since pet insurance customers will likely spend more time making and tracking claims.
In spite of this, our data show that when it comes to online and digital services, pet insurers – along with the insurance sector in general – trail banks and investment platforms.
Customers are more likely to use their bank’s app or website than their insurer’s, so these results aren’t entirely surprising. Many people look at their bank or investment apps daily - to check their balance or the value of their investments - but will only open their insurance apps if they need to make or track a claim.
In the case of pet insurance, though, where claims are more common, having a good website and app becomes more important.
According to our data, the correlation between customers’ overall happiness with a provider and their satisfaction with that provider’s online/digital services is stronger for pet insurance than for any other sector.
Companies such as ManyPets, which lead the way in digital services, also score very highly for customer happiness. Providers whose online and digital offerings get low marks from their customers, meanwhile, such as Pets in a Pickle, lag behind when it comes to customer satisfaction.
The message of our data is clear: for companies looking to enter the pet insurance market, investing in a good app and website is crucial. For existing providers, modernising online and digital services is key to keeping customers happy. Failure to do so risks losing customers to rival companies with more advanced apps and websites, which add to their customer service offering.
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