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Insurance products are becoming easier to compare. Customers can check premiums, coverage, add-ons and benefits across multiple providers before making a decision. This has made it harder for insurers to stand out through pricing alone.
But purchasing a policy is only the beginning of the relationship. Customers continue to evaluate their insurer when they renew a policy, update their details, ask about coverage or file a claim. These experiences influence whether they stay or consider another provider.
KPMG India's India CX Report'25 offers an interesting indication of this challenge. Its general insurance findings show that while 51% of customers are strong ambassadors of their current insurer, 48% are likely to consider switching providers.
The findings suggest that customer loyalty and the possibility of switching can exist within the same market. So, when insurers offer similar products at comparable prices, what makes customers stay with one provider over another?
The answer often lies in what happens after the sale: how clearly an insurer communicates, how easily customers access support, how it handles claims and whether it consistently delivers what it promises.
Reading the data. KPMG's overall study covers more than 6,600 customer evaluations across 280-plus brands and 11 sectors, and its methodology page says it used an online survey. The general insurance page does not state its own sample size.
Insurers keep more policyholders when the experience after the sale is clear and dependable, not only when the premium is competitive. KPMG India's 2025 research found 51% of general insurance customers were strong ambassadors, yet 48% were likely to consider switching.
- Claims are where trust is tested: clear requirements, status updates and explained decisions matter.
- Plain policy information prevents misunderstandings at claim and renewal time.
- Responsiveness means resolution, not just an acknowledgement.
- Track persistency, renewals, claims experience, resolution, grievances and feedback together.
Retention is shaped by the experience beyond the purchase
A competitive premium can help an insurer win a customer. However, it does not automatically give that customer a reason to renew.
The relationship continues through several interactions. A policyholder may need help understanding an exclusion, downloading a document, changing nominee details, checking renewal dates or following up on a claim. Each interaction contributes to their perception of the insurer.
KPMG's India CX Report'25 found that 48% of general insurance customers considered the purchase experience the most impactful stage of their journey. The report also found that 13% considered the post-purchase experience the most impactful.
consider the purchase experience the most impactful stage of the journey
KPMG India CX Report'25, general insurance
place emphasis on the pre-purchase stage in defining the overall experience
KPMG India CX Report'25, general insurance
consider the post-purchase experience the most impactful stage
KPMG India CX Report'25, general insurance
These figures describe the importance customers place on different stages; they are not satisfaction or retention rates. However, they underline that the relationship does not end when the policy is issued.
An insurer that makes routine interactions simple and dependable can give customers more reasons to continue the relationship.
Claims handling is where customer trust is tested
Insurance is a promise that customers expect the insurer to honour when they need financial support. This makes the claims experience one of the most important moments in the policyholder relationship.
A customer may have a smooth purchase journey and receive timely renewal reminders. But if a claim involves unclear requirements, repeated document requests or long periods without an update, their confidence can change quickly.
KPMG's general insurance research includes a customer account of switching providers after experiencing difficulties during a two-wheeler insurance claim. The policyholder described the vehicle being held for 15 days and problems during the claims process. The report also shares a contrasting experience in which an advisor's additional effort helped resolve a customer's issue.
These are individual customer accounts, not a measure of how frequently such experiences occur. But they illustrate why the claims journey can influence how customers view an insurer.
Outside India, Bain & Company's US property and casualty analysis gives a comparison point. It compares how likely customers were to renew, based on how satisfied they were with their claims experience.
of customers satisfied with their claims experience said they were likely to renew
Bain & Company, US property and casualty, Dec 2022. Sample not disclosed. Not India data.
of dissatisfied customers said they were likely to renew
Bain & Company, US property and casualty, Dec 2022. Sample not disclosed. Not India data.
Bain draws on NPS Prism data and does not state the sample. Treat it as direction, not a benchmark for India.
Insurers can strengthen this experience by:
- Explaining the claim registration process and required documents clearly.
- Sharing relevant claim-status updates at appropriate stages.
- Making it easier for customers to understand what information is still required.
- Providing clear explanations when a claim is partially settled or rejected.
- Making escalation routes visible when a policyholder needs additional support.
IRDAI's Protection of Policyholders' Interests, Operations and Allied Matters of Insurers Regulations, 2024 include provisions covering policyholder servicing and claim settlement. They reinforce the importance of insurers having appropriate systems and procedures for serving policyholders and settling claims.
Regulation 23(4) asks insurers to call for all required documents together, not piecemeal. Regulation 22 requires claims to be settled within the specified turnaround times.
A well-managed claims process does not guarantee that every customer will be satisfied with the outcome. However, clarity, fairness and timely communication can help prevent avoidable frustration.
Clear policy information helps prevent misunderstandings
Insurance policies contain terms, conditions, exclusions, waiting periods, deductibles and other details that customers may not fully understand when purchasing a product.
If these details are explained only during the sales process, customers may struggle to recall them when they need to use their policy.
A policyholder may not know whether a particular treatment is covered, whether an exclusion applies or what conditions need to be met before a benefit can be claimed. When the answer is difficult to find, the customer may have to contact the insurer or depend on an intermediary for clarification.
IRDAI's 2024 regulations address the importance of making insurance information understandable. They require policy terms and conditions to be written in simple and clear language, avoiding unnecessary jargon. They also provide for a Customer Information Sheet to help policyholders understand important policy details.
Note: Regulation 11 covers policy terms written in simple and clear language. Regulation 12 requires the sheet to accompany the policy document. For health policies, Outlook Money lists exclusions, waiting periods, co-payments, deductibles and claim turnaround time among its contents.
For insurers, the responsibility should extend beyond issuing documents. Important information needs to reach customers at the right time and in a format they can understand.
For example:
At policy issuance: Explain key benefits, exclusions and important conditions.
Before renewal: Share the renewal date, premium amount and relevant payment information.
During a claim: Explain the next step, pending requirements and claim status.
After a claim decision: Communicate the decision and its basis clearly.
The objective is not to send more messages. It is to make every communication useful enough to help the policyholder understand their coverage and take the next step.
Responsiveness can influence whether customers stay or switch
Not every customer interaction involves a claim. Policyholders also contact insurers about premium payments, policy documents, nominee updates, coverage details and renewal queries.
When customers face a problem, they usually want two things: an answer and a clear path towards resolution.
A delayed response, an unanswered query or being transferred repeatedly between teams can make a relatively small issue feel much bigger.
KPMG's India CX Report'25 found that 48% of general insurance customers were likely to consider substituting their insurer. Among the factors identified, a lack of responsiveness and empathy or unresolved customer-service issues were associated with an 8% customer dropout.
KPMG's page lists three drivers behind switching.
dropout linked to a lack of responsiveness and empathy, or unresolved service issues
KPMG India CX Report'25, general insurance
lose trust after negative public perception or bad press
KPMG India CX Report'25, general insurance
switch when coverage or benefits seem poor relative to cost
KPMG India CX Report'25, general insurance
This 8% is a finding reported in KPMG's customer-experience analysis. It should not be interpreted as proof that improving response times will reduce an insurer's actual churn by eight percentage points.
The finding nevertheless highlights the importance of customer support in the decision to stay or switch.
For insurers, the implication is straightforward: a response should not be considered successful simply because a customer received an acknowledgement.
Customers need to know whether their issue is being addressed, who is responsible for the next step and when they can expect an update.
A responsive service model should therefore focus on resolution, not just response time.
Convenience during renewals helps maintain long-term relationships
Renewal is a critical point in the insurance lifecycle. Customers may compare alternatives, reconsider their coverage or simply forget to complete a payment before the due date.
A difficult renewal process creates another reason to look elsewhere.
Insurers can reduce this friction by making renewal information easy to access and payment steps straightforward. Timely reminders, clear premium details, accessible policy documents and simple renewal journeys can help customers complete the process without unnecessary effort.
KPMG's research identifies automated reminders, one-click renewals and loyalty incentives among the experiences customers increasingly expect from insurers. It also highlights hassle-free policy renewals as one of the attributes that can influence willingness to pay more for a provider.
What customers value in general insurance
The IRDAI's 2024 regulations also emphasise policyholder servicing and the availability of information about services and procedures for accessing them.
Regulation 21(1) asks insurers to publicise their services and turnaround times. In Bain's US data, nearly 90% of customers likely to stay said renewal communication was helpful. That shows an association, not that messages caused renewals.
The opportunity is to make renewal feel like a continuation of a dependable relationship, rather than another transaction the customer has to navigate from scratch.
Consistency across channels makes the insurer easier to deal with
Customers may interact with an insurer through an agent, website, mobile application, call centre, email or messaging platform.
The channel may change, but the information should remain consistent.
Consider a policyholder who receives a renewal reminder through SMS, contacts customer support for clarification and then follows up through email. If each interaction provides different information, the customer has to repeat the same query and work out which response is correct.
This creates unnecessary effort and weakens confidence in the insurer.
A more consistent approach connects customer communication across channels. Policyholders should be able to receive relevant updates, access important information and continue a conversation without having to explain the entire situation again.
This is also where communication technology can support the customer experience. Platforms such as Helo.ai can help insurers coordinate customer communication across channels including SMS, WhatsApp, email and voice. Such platforms support the communication layer; policy administration, underwriting and claims decisions remain with the insurer and its authorised systems.
The value comes from making information easier to access and keeping customers informed, not from adding another channel for the sake of it.
Note: Send policy, renewal and claim messages only through channels customers have agreed to receive them on. Keep each message to what the next step needs.
Keeping policyholders informed?
Read about Helo.ai's insurance solutions, or talk to the team about policy, renewal and claims communication.
Retention needs to be measured beyond renewal numbers
A high renewal rate can indicate that customers are continuing their policies. But it does not always explain why they are staying.
Some customers may renew because they are satisfied with the insurer. Others may stay because switching is inconvenient, they have limited alternatives or they are concerned about losing continuity of coverage.
Insurers therefore need to look beyond a single retention metric.
A more useful measurement approach combines:
| Measure | What it asks |
|---|---|
| Policy persistency | How many policies remain active at defined intervals? |
| Renewal rates | How many eligible customers renew when their policies become due? |
| Claims experience | How long does claim settlement take, and how often do customers need to follow up? |
| Service resolution | How many customer issues are resolved without repeat contact? |
| Grievance trends | Which issues are recurring, and how quickly are they addressed? |
| Customer feedback | What do policyholders say about clarity, support and the overall experience? |
In life insurance, persistency is the share of policyholders who pay their renewal premium. Tata AIA describes measuring it at points such as the 13th and 61st month.
These measures should be reviewed together. For example, strong renewal numbers alongside rising complaints may indicate that customers are staying despite unresolved service problems.
It is also important to distinguish between customer satisfaction, willingness to recommend, stated intention to switch and actual policy renewal. These measures are related, but they do not mean the same thing.
more likely to renew with their current insurer: NPS promoters compared with detractors
Bain & Company, US property and casualty, Dec 2022. Sample not disclosed. Not India data.
The goal is to understand not only whether customers remain, but also what is driving that decision.
Conclusion: Retention is built between purchase and renewal
When insurance products and prices are similar, the customer experience becomes an important point of differentiation.
KPMG's findings show why insurers cannot take loyalty for granted: while 51% of surveyed general insurance customers were identified as strong ambassadors of their current insurer, 48% were likely to consider switching providers.
Customers remember whether their insurer explained the policy clearly, made it easy to access support, handled claims fairly and kept them informed. These experiences shape trust over time and influence whether policyholders choose to renew or explore alternatives.
For insurers, improving retention is not simply about offering another benefit or discount. It means making the entire policy lifecycle easier to understand and manage.
The insurers that build stronger customer relationships will be those that make their promises easier to understand, their services easier to access and their support more dependable.
Make the policy lifecycle easier to follow
Tell the Helo.ai team which moments matter most in your policy journey, and they can help you plan how customers are kept informed.
Frequently Asked Questions
What factors influence insurance customer retention?
Claims experience, clear policy information, responsive support, easy renewals and consistent communication across channels all shape whether policyholders stay. KPMG India's 2025 research found 51% of general insurance customers were strong ambassadors, yet 48% were likely to consider switching.
How can insurance companies improve policyholder loyalty?
Explain policies in plain language, give claim status updates and make renewal simple. Resolve queries with a named next step rather than only acknowledging them, and track persistency alongside complaints.
Why do customers switch insurance providers?
KPMG India's 2025 research found 48% of general insurance customers were likely to consider switching. Drivers it lists include poor service (8% dropout), negative public perception (9%) and poor value relative to cost (9%).
How does claims experience affect insurance renewals?
In Bain & Company's 2022 US property and casualty data, about half of customers satisfied with their claim said they were likely to renew, against about one-third of dissatisfied customers. This is US data, not an Indian benchmark.
What is policy persistency in life insurance?
Persistency is the share of policyholders who pay their renewal premium. It is measured at set points such as the 13th and 61st month, and it shows how many policies stay active.
How can insurers improve the customer experience?
Make each moment clear: key terms at issuance, renewal details before the due date, and next steps during and after a claim. Keep information consistent across channels so customers do not repeat themselves.
Note. This article is an editorial guide and general information, not legal or financial advice. Regulations and reports change, so confirm current requirements with IRDAI and your advisers. Helo.ai is a CPaaS provider and publishes this guide. Survey figures come from KPMG India and Bain & Company, not Helo.ai. Facts were checked on 13 November 2026.
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