Written by Leanne Smit, Senior Analyst, DataEQ
In today’s digital landscape, online reviews play a pivotal role in shaping consumer perceptions, particularly during the consideration phase of the customer journey. As potential clients research options, a company's reputation and customer sentiments reflected in reviews can heavily influence decision-making. For UK insurance providers, standing out in a competitive market demands innovative strategies to foster positive sentiments on public platforms. Leveraging Trustpilot and similar sites, insurers not only enhance their appeal but also cultivate a trustworthy image that resonates with consumers. This dynamic empowers individuals in their search for reliable services and provides insurers with critical insights into customer expectations and preferences.
DataEQ’s latest report, UK Insurance Sentiment Index: Consumer Duty Edition 2024, based on data from over 317,000 consumer posts from X and Trustpilot, examines whether the UK's leading insurers are meeting customer expectations in alignment with Consumer Duty outcomes. The report ranks UK insurers according to consumer Net Sentiment and delves into the drivers behind public compliments or complaints. Overall, the results were positive, with customers praising insurers for their affordable premiums, excellent customer service, and flexible policy options. These customer experience themes emerged from consumer feedback posted on social media and Trustpilot.
The role of review sites and social media in customer feedback
Review sites such as Trustpilot are built on the principle of transparency, aiming to connect consumers and businesses to foster better experiences. However, customers tend to be more motivated to write a negative review after a bad experience than they are to leave a positive one after a good experience. This leads to a warped public perception of a brand’s performance regarding the treatment of its customers. To mitigate this, sites such as Trustpilot allow businesses to invite reviews after a customer interaction. These invitations generate more feedback that might not have been posted organically, ultimately balancing the spectrum of reviews. Customers still retain the autonomy to share their honest experiences - positive or negative - without incentive or obligation.
In contrast, social media has emerged as a powerful customer feedback channel where consumers post unprompted, genuine sentiment on platforms of their choice. Invited reviews can sometimes appear less authentic, making it crucial for insurers to consider both solicited and unsolicited feedback for a comprehensive understanding of customer sentiment.
The impact of invited reviews on overall Net Sentiment
While overall results were positive, much of this positivity came from invited reviews on Trustpilot which masked customer complaints. To provide clarity, the report separated invited reviews from unsolicited feedback, focusing on organic Trustpilot reviews and customer posts on X.
Total public feedback across both X and Trustpilot had a Net Sentiment of 25%, while unsolicited feedback had a score of -40%. When focusing on Consumer Duty, this distinction became even more pronounced. Total public feedback recorded a score of 48%, but when invited reviews were excluded, the score for unsolicited feedback dropped by 104 percentage points.
Overall, invited customer reviews on Trustpilot significantly boosted Net Sentiment, highlighting the value of post-service feedback in shaping public consumer perception.
Drivers of positive feedback
Most insurers captured customer satisfaction at the sign-up stage, with positive reviews on Trustpilot highlighting easy sign-up processes, competitive pricing for new customers, good service, and clear policy documentation. However, some insurers recorded very low volumes of positive feedback regarding these topics. This may be a deterrent to potential new customers as it signals lower levels of customer satisfaction in comparison to the insurers who saw an influx of praise due to invited reviews.
Persistent complaints about customer experience
Feedback on social media and organic Trustpilot reviews were substantially more negative. Complaints stemmed from long-term customers who were dissatisfied with perceived high renewal prices and the subpar customer service received during the claims process. Negativity about these topics could potentially dissuade potential new customers. Only a few insurers invited customers to leave reviews after claims engagements. It’s important that insurers also capture positive experiences on these topics. Solicited feedback may surface positivity from customers who had pleasant experiences during the claims process but wouldn’t typically have left a good review of their own accord.
Heightened volumes of positivity regarding topics such as the claims process would arguably be as powerful in attracting new customers than praise for an easy sign-up process, because customers want peace of mind knowing their insurer will adequately support them at a time when they need it most. Therefore, insurers should leverage unsolicited feedback to identify pain points and continuously invite reviews throughout the customer journey to portray a balanced view of customer experiences.
Strategic use of invited reviews can benefit insurers long-term
Some UK insurers have successfully struck this balance by inviting clients to leave reviews, often capturing positive experiences tied to early, generally favourable lifecycle stages. However, there is also an opportunity to encourage positive reviews around typically challenging experiences, such as claims, when customers share a good experience. By adopting this more holistic review approach—highlighting positive experiences across multiple customer lifecycle stages—insurers can stand out at the client consideration phase.
In addition, insurers can significantly enhance loyalty and trust by actively engaging with social media posts and reviews. While recognising positive feedback is important, how complaints are handled influences a brand's reputation. By publicly acknowledging and addressing concerns, insurers not only demonstrate their commitment to customer satisfaction but also transform potentially damaging experiences into opportunities for connection. This responsive approach fosters a culture of transparency and accountability, reassuring current and prospective customers that their voices are heard and valued.
As insurers balance invited reviews with organic customer sentiment, they can cultivate a more authentic brand image, ultimately leading to higher acquisition and retention rates. By prioritising this two-way dialogue, insurers can not only repair but also strengthen their relationships with customers, paving the way for lasting loyalty in an increasingly competitive market.