(1888PressRelease)
March 18, 2009 - As with many other UK businesses, insurance companies have been firing UK-based employees and opting instead for cheaper labour out of the country.
The Insurance News website www.NoClaimsDiscount.co.uk recently surveyed a variety of customers who had left, or were now thinking of leaving, their insurance company. 11% of people interviewed stated that calls being handled by foreign call centre’s was at the core of their frustration. Ironically, the same ratio of people interviewed said they left their insurance company due to poor claims management. The fact that outsourcing is a reason for cancellation on equal par with poor claims management, speaks to the deep frustration customers feel when their calls are redirected to foreign countries.
The standard reason for “outsourcing” is that companies believe they can save money by spending less on salaries due to foreign exchange rates, different cost of living and so on. However, the cost savings experienced by companies may, in fact, be counterbalanced by the loss of business. Insurance companies lose potential revenue due to customer frustration and policy cancellation over the issue of foreign call centres.
With 11% of customers leaving their insurance providers due to negative experiences with foreign call centres, it is logical to conclude that the cost-saving benefits to be had by insurance companies by receiving these calls overseas may not be as pronounced as is currently perceived. The results of this survey conducted by NoClaimsDiscount.co.uk indicate -- if people are indeed leaving over the issue not just complaining about it -- that insurers may want to evaluate the overall cost-saving benefits of relocating their call centres.
ABOUT NoClaimsDiscount.co.uk- NCD News covers insurance related news aimed at both the industry and consumers, providing a balanced look at developments that could affect its readership. You can find more information on the insurers covered in this article at http://www.noclaimsdiscount.co.uk/insurance
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