InsurTech Service Study 2023: Fast Replies, But Declining Response Rates
When you think of InsurTech companies—the digital disruptors in the insurance industry—what comes to mind? For many, it's the promise of fast, seamless, customer-centric service. But how well do these digital insurers and service providers actually deliver when you need help? A new study by the German analysis and consulting firm FraLytics provides a revealing, if mixed, report card.
Conducted for the second time, the study performed mystery shopping on 29 emerging InsurTechs, including brands like Mailo, Simpego, Alteos, and Neodigital. The findings highlight a critical tension in the digital insurance space: impressive technological speed is being undermined by a growing failure to respond at all. For consumers comparing digital insurance options or advisors evaluating partners, these insights are crucial for managing expectations around customer service and client support.
The Speed Promise: Still Impressive, But Slipping
One area where InsurTechs continue to shine is raw response speed. The FraLytics study involved sending written inquiries and measuring the time to reply.
- Fastest Response: A mere 10 minutes.
- Average Response Time: 18.5 hours.
This is notably fast for written queries. However, a concerning trend emerged: this average is slower than the 11-hour average recorded in the previous year's study. While still quick, the initial speed advantage that defined many InsurTechs may be eroding as they scale.
The Growing Silence: A 21% No-Response Rate
The most alarming finding of the study is the significant drop in the overall response rate.
| Metric | 2022 Study | 2023 Study | Change |
|---|---|---|---|
| Companies Responding | 89% | 79% | -10% |
| Inquiries Not Answered | 11% | 21% | +10% |
This means one in five inquiries sent to these "customer-centric" digital providers received no reply whatsoever. As FraLytics analysts note, "This value is actually unacceptable for an emerging start-up company fighting for market share." For a potential customer seeking a health insurance quote or clarification on policy coverage, being ignored is a fundamental service failure that can erase any advantage gained from a sleek app or website.
Quality of Answers: A Silver Lining
For those companies that did respond, there was positive news regarding the substance of their replies. The study praised 75% of respondents for their thorough and well-founded answers, an improvement from 68% the previous year. Among these quality responders:
- 61.5% answered within 24 hours.
- 30.8% answered within 24 to 48 hours.
This indicates that when InsurTechs choose to engage, they can provide valuable, detailed service. The challenge is ensuring they engage at all.
Top Performers and Key Takeaways
In the study's overall scoring (where a grade of 1.0 requires 92+ points), four providers earned top marks for service: Clark, Easymize, Insurance Hero, and Segurio.
What This Means for You:
- For Consumers Seeking Digital Insurance: Speed is a real benefit, but reliability is not guaranteed. When considering an InsurTech, research their customer service reputation specifically. The flashiest tech stack means little if you can't get a question answered during a claim.
- For Insurance Advisors and Brokers: This study underscores that while InsurTechs are potent competitors on convenience, there remains a service gap that traditional advisors can exploit. Your value lies in guaranteed accessibility, personal relationships, and deep expertise—especially for complex needs like business insurance or comprehensive financial planning.
- For the InsurTech Industry: The growth phase must now prioritize scaling service operations alongside customer acquisition. A 21% no-response rate is a significant vulnerability that legacy insurers or more reliable digital players could exploit.
The FraLytics study paints a picture of an InsurTech sector in adolescence: showing great promise and capability but struggling with consistency as it grows. The race is no longer just about who has the fastest app, but who can build the most reliable and responsive service model around it. For the future of digital insurance, closing the response gap will be as important as any technological innovation.