Dodgy Insurance Statistics

One of the insurance companies in Australia constantly advsertises that a survey showed over 99% of customers who had made a claim would recommend them to others.

What is surprising to me, is that they could not score 100%. Having spent several years in the insurance industry in the past, I can tell you exactly what happens when you don't pay a claim. The customer finds another insurance company.

The survey would have come up with more meaningful results if they had selected a random group of policy numbers from 2-5 years ago, where claims had been made (not just the ones that were paid, but all claims) and then asked all of them if they were happy with the service.

This would then include those who had claims refused, were not happy with the service and have left to find alternate insurers.

In reality the advertisements should read something like "If you exclude those who were so pissed off with our claims system that they are no longer customers, 99% would recommend us to a friend."

Somehow, I can't really see that getting any time on air.

Proof again that there are 3 types of lies. Lies, Damn Lies and Statistics.

"There is only one truth. How we interpret that truth is called belief."
"The presence of belief, does not indicate the existence of truth."