Many policyholders in the Asia Pacific region were dissatisfied with various facets of their dealings with life insurers including pricing and customer experience, according to a Capgemini report.
A significant portion of life insurance policyholders expressed discontent across various facets of the business, according to Capgemini Research Institute’s «World Life Insurance Report 2025».
Within APAC, this included 57 percent who were dissatisfied with the pricing of their policies. The top reasons cited included a lack of clarity on premium calculation, lifestyle choices affecting premiums and unhappiness with hidden charges.
Customer experience also fell short across product features (as agreed by 46 percent), onboarding process (45 percent), service (44 percent) as well as claims and surrenders processes (49 percent).
Insurers’ Perspective
APAC Insurers themselves are aware of where improvement is needed. 81 percent recognize a critical need to redesign claims and surrenders with 72 percent and 74 percent feeling the same way about servicing and onboarding, respectively.
51 percent state limited adoption of advanced technology as one of the top challenges in delivering superior customer experience. Major issues faced from past legacy transformation included unexpected integration complexity (42 percent), lack of alignment with business objectives (58 percent), and lack of skilled resources (46 percent). Only 28 percent of insurers in the region are ready to leverage and maximize GenAI capabilities.
Outstanding CX
Globally, only five percent of insurers are delivering «quantifiably outstanding customer experience and achieving 'best-in-class' status». According to the report’s key findings, achieving this will require addressing policyholder dissatisfaction challenges at every stage of the customer journey; leaning into advanced technology; as well as cultivating talent and partnerships.
«Our analysis shows that best-in-class insurers go beyond developing advanced capabilities – they effectively translate these into measurable business outcomes,» the report said. «They consistently outperform mainstream insurers by achieving higher customer satisfaction, lowering operational costs, and driving stronger revenue growth than the industry, demonstrating their ability to convert enhanced customer experiences into tangible business success.»
The report reflects the views of 6,186 life insurance customers in 18 countries, as well as insights from interviews with 213 leading life insurance company executives across 16 markets across the Americas, Europe and Asia Pacific.
