Improving Engagement with Insurance Customers

Posted on

October 15th, 2018

The insurance industry has a harder time interacting with its customer base than many other fields. The only time an insured thinks of their provider is when they receive a bill, need to renew their policy, or have to file a claim. Otherwise, the insured is unlikely to give their insurance company much thought.

Insurance companies often have impersonal relationships with their clients, and this creates significant retention problems. Most insurance companies hover at around an 80% retention rate. This means after one year, 20% of their customers find a new insurer. Traditional communications between an insurance company and their customers don’t allow for interpersonal relationships. Most customers don’t feel a strong loyalty to their insurer like they do for retail-based businesses.

This means insurance companies need to find new and effective ways to cultivate customer loyalty. Some methods to increase customer engagement include:

Data corroboration. Insurance companies gather a lot of data about their customers. They know their addresses, their phone numbers, their assets, their financial statuses, and more. However, most insurers aren’t doing anything with that information. The data exists in oversized, unusable spreadsheets or some other antiquated data aggregation system. What insurers need is software to cleanse the data to validate its authenticity, remove duplicates, etc.
Utilize analytics. Organizing data in a way that makes sense is just the start. Insurance providers need to invest in software that helps them gain insights into the information. Analytics can help identify trends to help prevent turnover. For example, analytics may reveal common signs that a customer is considering changing providers. The insurer can then reach out to that customer through a newsletter, poll, or some other method of communication to determine what they can do to improve their satisfaction.
Targeted communication. Insurers don’t need to limit their customer communications to renewals, bills, claims, and attempts to retain their business. Personalized communication is often an effective tool to keep customers engaged rather than out looking for a new provider. For example, insurance companies can send newsletters about budgeting to customers going through difficult financial periods. The key is to send data that is useful to the customers’ life situation.

Developing deeper, more meaningful relationships with customers improves their loyalty and increases revenue. To put it another way, it’s difficult to send a believable heartfelt message alongside a bill statement. To learn more about improving customer satisfaction and client retention, contact the experts at Actec.

5 Warning Signs of Fraudulent Car Insurance Claims

Posted on

October 1st, 2018

Andrew

Insurance call centers fielding incoming claims need to familiarize themselves with common red flags that indicate fraud. While a call may seem ordinary at first glance, inconsistencies can tell another story. If an insurance representative thinks the claim may be dishonest, he or she can perform some rudimentary background checks. For example, did the customer finance the car? If the customer is upside down on the loan or recently lost his or her job, there is an incentive to get rid of the car.

The following are some of the biggest indicators that an auto claim may be fraudulent:

Hit-and-run accidents. Several incidents of hit-and-run claims are legitimate. The insured can describe the vehicle that hit him or her, and they may even have a partial license plate number. At the very least, they can provide clear details about what happened. However, when an insured customer calls in to report a hit-and-run, but he or she is shaky on the details, the claim warrants further investigating.
Recent or incongruous coverage. Collision insurance is standard for every insured customer. Many choose to include comprehensive as well. However, if an insured has only had collision coverage for the previous decade and suddenly adds on comprehensive, this should trigger a red flag for any claim that follows on its heels. For example, if an insured customer discovers a tree fell on his or her car, the collision would not cover the damage. However, if the damage isn’t severe enough to prohibit driving the vehicle or if the insured can wait it out, they may take out a comprehensive policy to use after the fact. Other times, insured customers will take out policies with way too much coverage for the condition of the car. Any claim that occurs in this situation should also prompt further investigation.
Unusual communication methods. If a client refuses to receive documents by mail, this can be an indicator that the claim is false. The client may not live at the location listed on their policy, hence wanting all documents handled electronically or in person. Insured customers who are hard to get ahold of by phone can also be an indication of fraud as email correspondence allows them time to get their story straight whereas phone calls require them to remember details on the spot.
Repeat offender. Insured individuals who are in similar accidents on a regular basis may require another look. For example, if a customer files hit-and-run claims several times a year, they may be false. There are always plausible explanations, such as if the customer has street parking on a busy road, but it’s worth further exploration all the same.
Charred remains. Many would-be arsonists are under the false impression that burning a car to the ground gets rid of all the evidence. However, today’s forensics and investigators can usually identify the accelerant. If any of the above elements apply (i.e. the vehicle is over-insured, the customer can’t afford the car payments due to life circumstances, etc.), that is all the more reason to investigate a burned car. Another factor to consider is the location. If the vehicle is in an empty area far from any other structures, this can indicate the fire was set on purpose.

Insured customers have several reasons for filing fraudulent claims. With vigilance and keen observation, claims adjusters can pinpoint common signs of a false claim. However, no human is perfect. If an insurance company wants to keep fraudulent claims to a minimum, they will need to put a quality system in place. Contact Actec to learn more about our full cycle claim and incident reporting solution today.

How to Turn FNOL into a Customer Satisfaction Opportunity

Posted on

September 24th, 2018

Andrew

Customer loyalty is harder to achieve than in years past thanks to aggressive competitor pricing and the ease of purchasing insurance online. It’s not new information that first notice of loss (FNOL) represents the single greatest moment to improve customer satisfaction during the claims process. However, creating a positive FNOL experience can turn a customer into a brand ambassador via word of mouth.

What Customers Want from Their Insurer

When a customer makes a claim, they are likely in a state of distress. They’re reporting a loss of some type, and are relying on their insurer to navigate the complexities of the claims process for them in a quick and efficient manner. If an insurance company suffers from a poor claims cycle, they are more likely to lose customers to competitors with more streamlined claims practices. From FNOL to claims resolutions, customers want the following from their insurance provider:

Empathy
Efficiency
A clear plan of what to expect during the claims process
Reassurance

Above all, though, claimants want to know their insurance company will respond as fast as possible. Customers can initiate FNOL over the phone, via an app, an online website, and more. The moment they begin the FNOL process, the clock is ticking for the insurance company to assure the customer that they will take care of their needs.

Effective Communicate is Vital to Customer Satisfaction

What this really boils down to is superior communication. Now more than ever, customers want to know what is going on with their claim every step of the way. They want updates on each stage of the claims process as well as next steps. Customer-centric insurance providers know this and offer customers several ways to receive updates. Some customers prefer texts while others want a direct phone call.

An insurance company that takes the time to reassure their customers at the outset of a claim as well as maintains effective communications through the claim cycle is more likely to retain customers. While competitive pricing may lure customers briefly, superior services will win out in the end. Although insurers need to make certain their entire claims process is effective, FNOL sets the tone for the entire duration of a claim. If your FNOL processes are lacking, you run the risk of losing customers. Contact the experts at Actec to learn how we can help your company implement groundbreaking FNOL solutions.

How to Prevent Employee Burnout, Absenteeism, and Turnover

Posted on

September 17th, 2018

Andrew

Gallop conducted a recent study of 7500 full-time employees and found that almost a quarter of them (23%) felt burned out in the office on a regular basis if not at all times. Nearly half (44%) reported experiencing burnout at some point. Employees who are on the verge of mental or emotional collapse in the workplace represent a significant challenge for employers. These employees are more prone to illnesses such as depression, coronary heart disease, high cholesterol, and more.

What Causes Employee Burnout?

Several factors contribute to employee burnout. These include:

Difficult or impossible deadlines
Unmanageable workload
Unfair treatment at the office
Limited support from management
Working off the clock (i.e. responding to emails and text messages during off hours)

The Cost of Employee Burnout

As mentioned above, stressed out employees are more likely to experience physical and mental health issues. These medical costs translate to $125-$190 billion in health care expenses per year. Not only that, employees experiencing burnout are more likely to suffer from attendance issues (i.e. arriving late, leaving early, or calling out often). Given enough time, excessive workplace stress can result in employee turnover, which carries significant costs for businesses. With two-thirds of employees experiencing some kind of burnout, business managers need to take steps to reduce employees’ stress or be prepared to pay the costs.

How to Prevent Employee Burnout

Part of preventing burnout is ensuring smooth business operations. For managers this means:

Knowing and cultivating employees’ strengths. When an employee is in a position that doesn’t match his or her skill set, he or she will become frustrated and disengage. Employers should take pains to match employees with jobs and tasks that allow them to utilize their skills and thrive. Encouraging employees to get involved in professional development activities can further hone their skills and motivate them.
Working on employees’ weaknesses. While employees would prefer to play to their strengths, there will always be areas of their job that intimidate them. Instead of skirting the edges of these tasks, employers should encourage employees to improve their knowledge and grow in their abilities.
Communicate often. If employers don’t communicate with their employees on a regular basis, they run the risk of overlooking employee frustrations. By maintaining frequent communications, managers and employers can identify stress points. Asking for feedback and opinions also makes employees feel like management values their opinion, which improves their overall job satisfaction. In fact, employees who feel like management supports them are 70% less likely to experience burnout.

Preventing employee burnout whenever possible is vital to keeping employees engaged and reducing absenteeism rates. If your company is struggling with poor employee attendance, contact the experts at Actec to learn how we can help.

How Insurers Can Repair Damaged Customer Relationships

Posted on

September 10th, 2018

Andrew

smart devices Much like any other service-driven industry, insurance companies rely on customer satisfaction to stay in business. If customer satisfaction is low, insurers are at a significant risk to lose their customers to competing companies. Customer loyalty is no longer what it used to be, either. Forty percent of policyholders are unhappy with their current provider and they are considering switching to a new insurer within the year.
This is a significant risk for a few reasons. Insurance companies could see $400 billion in insurance premiums switch hands over the span of one year. That is a significant amount of destabilization in the industry. While some insurers may benefit from the change, many cannot withstand such a significant change in finances. One-fourth of customers are also willing to cancel an existing contract regardless of fees or penalties. Compounding this problem, customers are willing to shop online to purchase insurance rather than using their existing provider.

Stemming the Loss of Customers

Customer satisfaction is the key to loyalty. If customers aren’t happy, they have no incentive to stay with their existing insurance company. The following are several ways insurance companies can increase customer satisfaction:

Offer personalized services. Customers dislike when they call their insurer to discuss policy options and a representative directs them to a website for assistance. Customers want personalized services so they can feel secure in their insurance policy decisions. While insurers may balk at this notion citing additional time and cost, 41% of customers are willing to pay extra for this level of care and service.
Offer affordable solutions. Continuing with the above, just because customers are willing to pay more for personalized services doesn’t mean they are willing to overlook their policy’s price tag completely. Not all customers can afford Cadillac policies with all the bells and whistles. Many need realistic coverage that makes them feel safe in the event of a claim without gouging their checkbook.
Up to date technology. Customers expect to be able to access information about their claim from any device, at any location, anytime they want. This means insurance solutions need to be mobile friendly including an app for ease of access.

If your insurance business is struggling with customer satisfaction or noticing problems with customer retention, Actec can help. Contact us to learn how our innovative FNOL solutions can help your company today.

Encourage and Improve Employee Attendance

Posted on

September 3rd, 2018

Andrew

shutterstock_252811903 - Copy Every business needs their employees to come to work on time; however, customer-centric jobs tend to suffer the most in the short term. While missing employees will affect productivity for all companies down the line, businesses that work face-to-face with customers on a daily basis feel the pinch right away. When employees start arriving late, leaving early, or not arriving at all, employers will have a variety of staff-wide problems on their hands. Poor attendance torpedoes morale, forces other employees to work overtime, reduces engagement, and hinders productivity.

5 Ways to Foster Better Attendance

Customer support jobs aren’t the only professions that feel immediate effects due to absenteeism. Teachers, healthcare providers, and technical support jobs all have workstations that are painfully obvious when vacant. Companies that rely on collaboration between departments also experience the effects when a major project can’t move forward. Regardless of work environment, all businesses need to keep absences under control. Several ways to achieve this include:

Create and implement rules in a uniform manner. Every employee, regardless of position, needs to receive a copy of the company handbook with clear details about leave policies during orientation. When employees know paid time off (PTO), sick leave, and vacation leave are the same for everyone, it has a positive effect on their sense of fairness. Whether an employee works in the warehouse, the front office, or the executive suite, attendance policies should apply across the board.
Manage absences by underscoring employee importance. Some absences are legitimate—employees fall ill, experience injuries, and any number of protected kinds of absences can occur. However, unscheduled absences stress out the rest of the staff, which can lead to more absences over time. When an employee calls out, their supervisor should have a conversation with that employee letting them know the staff and managers will miss them and they hope for a rapid and full recovery. When the employee returns, their supervisor should welcome them back in person and underscore the employee’s importance. When employees feel like an essential part of the team, they are less likely to call out for dubious reasons.
Be flexible whenever possible. Flextime and working from home have gained in popularity for good reason. Parents dropping off children at school or picking them up from childcare can’t always work a traditional 9-5. For example, allowing them to shift their day to work 7-3 can allow their spouses or partners to drop children off at school while they pick them up afterward. This cuts down on the need for childcare and reduces stress over finances. While an employee’s personal life isn’t the supervisor’s job to manage, their personal stress can affect their attendance and performance.
Reward employees for good attendance. Some employers balk at the idea of paying their employees extra for showing up on time to do their job. However, all employees like to feel appreciated. Recognizing stellar attendance make employees feel valued and thereby improves their loyalty. Reward programs can be as simple as free movie tickets or as grand as earning an extra vacation day for every month of perfect attendance.

Too many attendance policies are consequence-driven. While there need to be penalties for absenteeism, focusing on the positive is much more likely to yield the attendance results an employer wants. If your company is struggling with absenteeism, Actec can help. Contact us to learn more about how our absence reporting program can improve attendance.

Four Ways to Improve Your First Notice of Loss Process

Posted on

August 27th, 2018

Andrew

shutterstock_306793247 - Copy First notice of loss (FNOL) represents the single greatest opportunity to improve a customer’s satisfaction with their insurer. However, when a customer initiates a claim, they are likely in an emotional state. Filing a claim after an accident, loss, or theft is stressful and customers have high expectations with diminished patience.
A customer’s experience matters for retention and recruitment purposes. If the customer has a negative experience, he or she may find a new insurer as well as tell his or her friends and family to avoid that insurance provider. In fact, customers are 60% more likely to talk about their bad experiences than their positive ones. Because of this, it behooves insurers to fine-tune their FNOL process to ensure their customers have the best claim outcome possible.

How Strong is Your FNOL Process?

The following questions can help insurers assess the strength of their FNOL process:

Can customers start a claim through their smartphone? Technology has caused customer expectations to skyrocket, meaning they want to initiate a claim when they want, how they want, where they want. Customers want the ability to switch their methods of communication from phone conversations to digital interactions. This gives them the freedom to manage their claims from the palm of their hand.
Do customers have several options for how to start a claim? Continuing with the above, customers like a variety of ways to contact their insurer about a new claim. Some prefer to speak to an insurance representative directly while others want to begin the process via digital methods. Forcing customers to initiate a claim in one specific way will frustrate them during an already stressful time.
Can customers receive real-time updates on their claim? Customers don’t like to be left in the dark when it comes to their claim status. They want easy access to updates regarding their claim. This can allow them to stay up to date on verified documents as well as missing information notifications.
Do employees have access to customer data? Allowing a customer to initiate claims from their smartphone is useless if employees don’t have access to that information. This requires customers to provide information multiple times, which frustrates them. If adjusters from various processes can’t connect to FNOL systems, they won’t have the data they need to progress the claim in a timely manner.

A poor FNOL process can cripple retention and recruitment efforts. Addressing the above points can help ensure a positive customer experience and continued customer loyalty. Contact the experts at Actec to learn how we can help you improve your FNOL process.

How to Help Employees Manage Back to School Stress

Posted on

August 20th, 2018

Andrew

education-908512_1920 Summertime is a break for working parents from parent-teacher conferences, after-school activities, and shopping for school clothes and supplies. Now that summer is winding down, employees with children may be showing signs of stress as they try to reengage for the upcoming school season. While it’s not an employer’s job to manage their employees’ personal lives, a good work-life balance is crucial to keeping the workforce happy and productive. The following are several ways employers can help employees ease back into the school season:

Be cognizant of employee needs. Small to mid-size companies have an easier time of it, but all companies, regardless of size, should be aware of their employees’ needs. Learning who has children can help managers and company leadership work with employees to prepare for the back to school season. Team meetings represent a great opportunity to remind staff that it’s time to prepare for the new school year and discuss any challenges this may present. For example, some employees may need more time to complete a project than usual to allow them to make sure their child is ready for the upcoming school season.
Remind staff of their leave. It’s easy for employees to think of paid leave as for vacations or illnesses only. However, many company policies include personal leave or utilize an overall paid time off (PTO) bank that employees can use for any purpose. Some states even provide 24-hours of unpaid leave for qualified employees to address their children’s educational and medical needs. Employers and managers should remind staff members that a positive work-life balance is important and to use their leave if they need to.
Be flexible. Employees often have to arrange childcare for children before and after school. Sometimes these arrangements fall through and the employee must scramble to find proper care. Other times, the cost of childcare is too expensive for employees to manage morning and evening care. One way to help alleviate this issue is to allow for flexible start times. For example, if an employee usually works 7:30-3:30, consider allowing them to work 9-5 instead or vice versa. This can allow them to take their kids to school or pick them up from school depending on which situation works better for them. This can help them solve the problem of short-notice childcare and the related expenses. Another option is to allow employees to work from home for a certain number of hours for the first couple of weeks of school while they establish their new routine.

Employees who struggle with stress at home and at work are more prone to unexpected absence. Employees who feel like their employers care about work-life balances have better attendance records, are more loyal, and have better productivity. Helping employees cope with stressful periods in their life can help them manage their responsibilities at home while keeping up with their work. To learn more about reducing employee absences, contact the experts at Actec.

How to Settle Claims Quickly for Better Customer Satisfaction

Posted on

August 13th, 2018

Andrew

shutterstock_306793247 - Copy Customers and insurers both want rapid resolution for claims. However, insurers have to balance risk and fraud with customer satisfaction, which can result in some delays. The longer a claim sits unresolved, the angrier the customer will become. To help resolve claims without increasing risk, insurers need to put a well-organized claims process in place. Some ways to achieve this include:

Keep claims loads manageable. When claims adjusters take on too many claims at once, they are likely to drop the ball on at least one (if not more) of them. Forming claims into sets or groups based on necessary resources can help expedite the process while keeping the workload practical.
Identify the bottleneck. There are a number of reasons why claims don’t reach settlement. These include disagreements over what insurance will compensate, requests for medical treatment, and overlooked simple requests. These issues can halt a claim so identifying and addressing them can help get it back on track.
Triage claims. The number of unsettled claims can spiral out of control if adjusters don’t manage resolutions appropriately. Adjusters should first focus on claims that are ready for settlement. After that, the next most appropriate claims to settle are the oldest in order to regain those customers’ satisfaction. New claims with complex intricacies should also garner rapid attention as well so that the details don’t get lost over time. Adjusters should avoid working on claims where the claimant is uninterested in settling in favor of the above types of claims. They can always return to those claims after resolving ones that are more straightforward.
Pinpoint ways to improve going forward. Some claims remain unresolved for long periods due to inefficiencies in the claims process. When working claims, try to identify the reasons for this and implement new practices to prevent them in the future. For example, if numerous delays are the result of unanswered medical requests, consider adding a step to check for these requests at regular intervals to make sure no one misses them.

Improving claims processing from first notice of loss to settlement helps improve customer satisfaction and close more claims. If your claims handling processes are causing customer retention issues, Actec can help. Contact us to learn more about our Full-Cycle Claim and Incident Reporting Solutions.

4 Things You Need to Know to Reduce Workplace Stress

Posted on

August 6th, 2018

Andrew

shutterstock_174875483 Stress is one of the leading causes of employee absenteeism. However, stress is a multipronged issue with several sources. Some of the most common include:

Excessive employee workload
Issues with coworkers
Unengaging or unsatisfying work
Low salaries
Limited opportunities for growth or advancement

With over three-fourths of workers reporting feeling stressed, successful managers need to make themselves aware of the stress points and take steps to mitigate them.

How to Tackle Stress in the Workplace

Identifying problems isn’t enough—great managers will take the initiative to resolve them. The following are several methods that can reduce different types of workplace stressors.

Set clear goals and expectations. If staff members have to sit and wonder what they are supposed to be doing or what the end goal is, they are wasting time. Not only does this stress them out, it also creates delays, which can compound their stress. By providing clear instructions and appropriate details, employees will understand what they should work on and why.
Encourage activity or exercise. Encourage employees to get moving whether they go for a walk during lunch or hit the gym. Moving the body can allow the brain to take a mental break. Staring at a screen for eight hours straight for days on end can stress an employee to the point where they become ill or lose motivation. Encouraging employees to take a 5-minute stretch break or walk every couple of hours can allow them to decompress and improve their focus.
Imbue flexibility into your company culture. Employees have lives outside of the workplace and great managers will recognize this. Employees need flexibility to keep their work and life needs in balance. Allowing for flexible schedules so employees can come in earlier or later will help accommodate parents with children in school or employees who are attending college courses at night. Offering the ability to work an extra hour per day, four days a week so employees can take a half day on Friday can also boost morale. Implementing a work from home policy can reduce employee stress as well as it gives them the ability to work from home if they can’t come in due to caring for a sick child or family member.
Recognize employees’ achievements. Recognizing team members’ efforts makes employees feel appreciated and valued. This can improve their engagement and productivity as well. Acknowledging hard work can be as simple as having a chat about the great work the employee has been doing or as grand as recognizing employees during meetings or events.

Great managers will make sure their employees know they care about reducing their stress. This fosters loyalty, improves workplace productivity, and reduces absenteeism due to stress. To learn more about improving employee attendance, contact the experts at Actec.