University of Pretoria study shows South Africans satisfied with life insurance services

South Africans remain notably satisfied with their life insurers, according to the newly published research from the University of Pretoria (UP).

The first-ever Life Insurance Customer Experience (CE) Index for 2024/2025 paints a largely favourable picture of the industry, which achieved a commendable overall score of 74.1 out of 100, outperforming numerous other sectors surveyed.

“The life insurance industry is currently performing the best of all industries we've measured,” says Adré Schreuder, head of the industry chair in customer experience at UP.

“Satisfaction across the sector is generally very high, especially when it comes to overall service delivery quality, staff competency, process efficiency, and the reliability of digital tools. The survey depicts an industry that pays claims promptly, resolves problems decisively, and has generated strong goodwill," he says.

The CE Index, based on 2,987 audited interviews nationwide, illustrates how South Africa’s life insurers are exceeding international norms on several key performance indicators.

The index says, notably, just 6.6% of customers reported encountering problems, compared with the global benchmark of 10%. Furthermore, 53% of reported issues were fully resolved – a figure that aligns with international standards.

As the country’s first comprehensive assessment of customer experience in life insurance, the CE Index employs seven interlinked “cause and effect” components beyond basic satisfaction scores.

These include quality of experience, perceived value, issue resolution, and customer loyalty. The index focuses on the five largest local life insurers by market share, offering independent insight into the full customer journey.

Sanlam emerged as the overall industry leader, clinching top honours in the Life Insurance Overall Industry category, along with awards in both the Contact Centre and Broker/Advisor Channel categories.

Old Mutual walked away with the Life Product Category title, while Liberty and Momentum jointly led in the Tied Agent Channel category. While the industry’s delivery of high-quality service experiences was well regarded, scoring a stellar 80 out of 100 on the Quality of Experience Index, customers’ perception of value showed clear signs of strain.

The Value of Experience Index reached only 73.3, a striking 6.7-point difference from the quality score, highlighting respondents’ dissatisfaction with premiums and perceived value for money, wasted time, and administrative inefficiencies in dealing with insurers. The three most common areas of complaint were related to payment and premiums, service, and policy and product concerns.

“The challenge is that buying life insurance often begins with a clear honeymoon phase, there’s a sense of goodwill, security, and a feeling that you’re doing right by your family. But if brokers and tied agents only check in occasionally, and a simple change like a new address, bank, or employment details turns into a frustrating process, or a payment bounces or coverage unexpectedly lapses, consumers’ perception of value may diminish," Schreuder says.

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