They may seem like small things, but they do count. Here are some examples of small 'service' issues, over which clients have dumped insurance companies in favour of another:
- The client's company had a long name, and it was cut short on the policy document. The insurer said it didn't matter because it was right on their computer system, the client's lawyer pointed out that the contract was the document, not the computer system. So they changed insurer.
- The client's title was 'Mr' but the company recorded them as 'Mrs'. The client made several complaints, after each one the company could not appear to get it right, the client left.
- Direct debit deductions were repeatedly made for the wrong amounts, because a policy belonging to a completely unrelated person was connected to this client's policy. It took months to sort out. After the next policy anniversary, it happened again. The client felt it was simpler to terminate the contract than go through it all again.
- This client was sold a policy which included an exclusion which meant that they could never claim. They wondered why they bothered filling in the application form if the insurer wasn't going to read it, and concluded it would be better to be with a different insurer.
- Another client was friends with a person who had a claim declined. They cancelled right after hearing the story.
I know from my friends that work at insurers that each of these cases were arguable, but in the end, the customer gets to decide. Putting yourself in their shoes, I can see their point of view in every case. I also know that when you administer thousands, sometimes, hundreds of thousands, of contracts, mistakes do happen. Some of these losses are inevitable. But the point is this: customers can choose to leave even for small reasons. Sometimes small reasons are actually the big reasons.