July 18 - Post Magazine
July 18 - Post Magazine
Recent studies have shown that the claims stage represents one of the most important phases in which the customer-insurer relationship is tested. If a customer feels let down by their claims experience, very often they show no hesitation in changing insurance provider when the time comes to renew their policy. For many customers, making a claim may be the only time they have direct contact with their insurance provider and it is also the time when they assess the real value of the insurance policy they have been sold. Today’s insurance-buying consumer is promiscuous – the ability to shop around quickly and easily online and on aggregator sites represents a challenge to insurers and brokers in terms of customer retention.
Building trust and loyalty with the customer will help an insurer or broker to stand out, encouraging the customer to look beyond price as their primary buying criteria at the time of renewal. A flexible approach, a positive customer experience, and high-quality customer care are key to customer retention. For claimants, improved communication and transparency are important aspects of the claims management process.
In fact, some aspects that can turn claims management into a positive customer experience and drive long-term loyalty include providing clear contact details, meeting settlement expectations, receiving an accurate estimate of how long the claim process will take, receiving notification of any claims status changes and follow-up after the claim to ensure that the customer is satisfied with the outcome. Avoiding the involvement of third-party claims handlers and interacting with only two insurance company representatives throughout the claims process can also reduce inefficiencies, additional costs and the risk of fraud. What techniques are being adopted to analyse and support customer retention?
Insurers can track and analyse lapsed customers as well as develop proactive retention strategies by monitoring and segmenting customer portfolios to have a holistic view of customers. Rich sources of internal, cross-industry and third party consumer data can be utilised to support customer retention goals and quickly validate claimant and claims details, enabling swift decision making to improve claim settlement and the overall customer experience.
‘Knowing your customer’ is key to making them feel valued and being able to provide a relevant service. I heard an interesting story at a recent conference which epitomises the personal touch in relation to claims. A woman attempting to make a claim on her insurance was unable to read the policy details as her young son had coloured over the relevant section. She called her insurance provider to explain her predicament and was assured that a new copy of the policy document would be posted to her that evening. Imagine her surprise when on opening her post the next morning, in the envelope with the promised copy of the policy document was a note from the claims handler and a picture for her son to colour in to avoid a repeat performance with the certificate.
We can all relate to how valued, listened to and taken care of she must have felt. And of course how many people must she have told that story to? Those insurers and brokers that strive to provide their customers with the personal touch will see their reputations precede them, supporting customer retention and growth goals.
by Sara Costantini, Director at CRIF Decision Solutions Ltd
