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The 2025 National Financial Ombud Scheme of South Africa (NFOSA) received a record number of complaints last year. For life and funeral cover, 40% of formal complaints received were because of poor customer experience. Unhappy or dissatisfied customers can increase lapse rates, adversely affecting your clients and your business. Our policyholders' experience is critical, and getting it right benefits both your clients and your business.
Poor service generates more complaints than declined claims
According to the Ombud’s 2025 Annual Report for the period ending 31 March 2025, 40% of formal complaints for life and funeral cover relate to poor communication and service. For life cover, this is even higher than complaints about declined claims, which accounted for 29% of complaints.
For funeral cover, half of all complaints related to declined claims. However, many of these complaints can still be traced back to poor communication. Claims were often declined because policy terms and conditions were not met, there was no insurable interest or claims were submitted during the waiting period.
Poor service damages your reputation and the 1Life brand
1Life's post-sales surveys tell a similar story. Negative feedback often relates to communication and service rather than the product itself. Comments such as, "Very bad service, please ignore and cancel my contract" and "Your broker is incompetent" show how a poor customer experience can damage both the broker's reputation and the 1Life brand.
Great customer service pays off
Everyone knows that a good customer experience is good for business, but just how much? Research shows that 89% of customers are likely to make a second purchase after a positive customer experience and spend up to 140% more than customers who have had a poor experience.
How to deliver a better customer experience
Be available when your clients need you
Good customer service starts with understanding your clients’ needs, answering their questions and providing support when they need it. Responding promptly, keeping clients informed and following up regularly reassures policyholders that they matter and helps build customer satisfaction. 27% of formal life cover complaints to the Ombud relate to delays in responding to clients. These dissatisfied clients are more likely to share their negative experiences with others, making it harder to attract and retain future business. Even when you don't yet have an answer, keeping clients updated shows them their query hasn't been forgotten.
Help clients understand their products
Most South Africans understand what life and funeral cover are designed to do. However, many policyholders are less familiar with the policy terms and conditions that determine when and how claims are paid. Waiting periods, for example, form part of most funeral policies, yet they remain one of the most misunderstood policy features. When clients understand the policy's terms and conditions, definitions and waiting periods, they are less likely to be surprised by claim outcomes and more likely to have realistic expectations of their cover.
How to create a culture of outstanding customer service
Our post-sales surveys don't just identify service gaps. They also highlight the positive experiences that build trust, strengthen relationships and create loyal customers:
“(Your agent) treated me with respect :) explaining to me all about 1Life thank you so much wishing him all the best in future God bless.”
“Great service from your agent.”
“The representative was friendly and helpful. He explained the policy to the best of my satisfaction.”
A great customer experience doesn't happen by accident. It requires a formal plan, clear service standards and a commitment to continuous improvement. Here are four practical ways to build a customer-focused culture in your business.
Set and monitor SLAs
Develop internal service level agreements (SLAs) for key customer interactions, such as responding to enquiries within 48 hours or returning missed calls by the end of the next business day. Monitor these standards regularly to ensure they are being met and investigate recurring delays so they don't become customer complaints.
Ongoing training and product refreshers
Ensure all agents and representatives are properly accredited and offer ongoing training on products sold. Your product provider can help and our broker consultants are ready to assist. Make sure the problem areas like waiting periods and qualifying members on funeral policies are addressed in training so they can be explained to clients. Complaints about these issues feature in every Ombud's report, highlighting the importance of explaining them clearly to clients.
Keep TCF front of mind
The principles of Treating Customers Fairly (TCF) are closely aligned with good customer service. They remind advisers to recommend suitable products, communicate clearly, provide ongoing support and remove unnecessary barriers when clients need help. If you're ever unsure whether you're delivering a good customer experience, the six TCF outcomes provide an excellent benchmark.
The six outcomes require that:
- TCF is embedded in your business culture.
- Products are suitable for the clients they are designed to serve.
- Clients receive clear, accurate information about their policy before, during and after the sale, including its benefits, terms and conditions.
- Advice takes account of each client's individual needs and circumstances.
- Products and services deliver what clients have been led to expect.
- Clients can easily change products, switch providers, submit claims or lodge complaints without unreasonable barriers.
Ask your BC for help
Your BC is available to discuss any customer experience challenges you're facing and suggest practical ways to improve your clients' experience. We've developed a range of customer education resources that explain the basics of cover, waiting periods and other important policy terms in several official languages. Speak to your BC about how these resources can help your clients better understand their cover and reduce misunderstandings that may lead to complaints.
Final thoughts
A single poor customer experience can undo years of trust, while a positive one can create a loyal client who recommends your business to others. By making customer service a priority and treating every client fairly, you'll build stronger client relationships and a stronger practice.