Category: Claim Management

What Customers Want from Their Insurance Provider

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January 27th, 2020

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When it comes to selecting an insurance provider, whether for home, auto, business, or otherwise, customers look at several core elements when making their decision. Insurers that want to remain competitive need to analyze what these individuals want in order to implement practices that will retain existing customers while enticing new ones.

When choosing an insurer, people consider the following metrics:

  1. Cost. Everybody has a price limit in mind for how much they’re willing to pay for the coverage they need. While some individuals will sacrifice coverage in lieu of a lower price tag, not many are willing to take this route. If a provider’s rates are too high, the individual will look elsewhere for coverage. While several factors influence what rates a provider can offer, insurance companies need to keep this fact in mind when considering their target audience.
  2. Customer satisfaction. Even if an insurer offers great rates, potential customers will give them a wide berth if the reviews are lukewarm. Satisfaction ranks pretty high on customers’ priority lists and includes courtesy, how easy it is to reach a representative, and timely communication.
  3. Discounts. With price being a significant influence on a customer, many insurance providers offer discounts to offset premiums. Many of these discounts benefit both parties, such as bundling services. The insurer secures two policies while the insured receives a discount. Other discounts include good student discounts, safety feature discounts, safe driver discounts, and discounts for individuals that belong to certain groups such as AAA.
  4. Claims. Claim satisfaction is a significant indicator for customer retention and acquisition. Even if a provider offers fantastic rates and discounts, no one wants to rely on a company with protracted, lackluster claims services. Customers expect the claims process to be simple to navigate from start to finish. They will not hesitate to find a new provider after a negative claims experience.

A variety of factors affect what insurance provider a customer will choose as well as whether they will stay with their existing provider. While cost and discounts can fluctuate, satisfaction with the claims process can make or break the customer-provider relationship.

When a customer initiates a claim, they’re trigging first notice of loss (FNOL). This represents the single greatest opportunity a provider has to ensure a satisfying experience. If a customer completes FNOL and leaves the interaction unhappy, it is very difficult to improve that individual’s satisfaction with the claim from there. Contact the experts at Actec to learn more about improving FNOL and customer claim satisfaction.

How to Improve the Customer Experience for Better Retention

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January 13th, 2020

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Individuals selecting their insurance providers tend to be choosy because they know they can afford to be. With so many providers on the market, these people have endless options to research and snaring them relies on a combination of offering products and features they want at a competitive price. However, maintaining their loyalty is a challenge as well. Focusing on maximizing the customer experience whenever they call to file a claim or seek more information about their coverage can go a long way to retaining existing clients.

Not only that, but it costs significantly more money to obtain a new customer than it does to keep existing clients happy. As such, it behooves insurers to put time and effort into boosting customer service. When customers are happy with how their provider does business, they’re more likely to stay with that company even when their insurance needs change.

The following are some of the more effective means of improving the customers’ experience while interacting with their insurance provider:

  1. Keep it simple. When customers have to go through several phone trees or navigate down numerous website menus, they’re going to become frustrated fast. Building websites so that they’re customer-centric can cut down on confusion and keep their business.
  2. Remove unnecessary steps. While some customers may want to browse or compare their options, some know upfront what they want. Offering a direct option for these individuals to receive quotes or purchase coverage removes unnecessary hassles and keeps those clients satisfied.
  3. Open up additional communication options. Sometimes, customers have basic questions about their policies or coverage that would be much simpler to answer via a chat or text system. This is also beneficial during periods of crisis when customers need to produce documents following an incident.
  4. Allow for customization. Every customer’s insurance needs will be different and a one-size-fits-all policy isn’t going to work well. For example, customers that own vintage cars may not need full coverage during the winter months if they put them away in storage. Allowing for flexible coverage that shifts with their needs provides value and instills customer loyalty.

From digitization to ease of use, insurers can take several steps to overhaul their approach to customer service. Contact the experts at Actec to learn more about improving customer satisfaction through effective claims management, first notice of loss, and more.

4 Key Elements that Improve Customer Claim Satisfaction

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December 30th, 2019

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If an insurance provider’s claim cycle is out of touch with modern expectations, they will struggle to keep up with their more tech-savvy competitors. Optimizing the claim cycle can boost customer satisfaction as well as improve their loyalty. Insurers looking to improve their claims cycle as a means to boost customer retention should focus on the following areas:

  1. Be proactive. Accidents happen and claims follow suit, but insurance providers can take steps to avoid costly, time-consuming claims. This means running risk profiles on clients to identify who is most likely to report a loss. Instead of waiting for a high-risk client to submit a claim, insurers can take steps to help them reduce their risks.
  2. Make the process customer-centric. Insurance companies used to make business decisions that met their own preferences first before considering their customers’ outlooks. This was often the case because operations could flow more smoothly with convenient structuring. However, what is helpful for the insurer may impede the customer. Insurance providers that wish to remain relevant need to take steps to provide personalized, transparent, and rapid services that make the process easier for customers.
  3. Provide swift responses. Identifying threats and opportunities early allows insurance providers to develop a rapid response plan. Anticipating customer’s needs and concerns can keep business operations flowing smoothly. For example, younger generations rely heavily on social media and online reviews of companies and their services. By using smart software or artificial intelligence, insurers can monitor social media posts that mention them in both a positive and negative light. This gives them the opportunity to engage to prove their superior service skills.
  4. Go digital. Mobile apps for insurance providers aren’t a new concept, but some insurers are taking technological advancements to the next level to give them an edge. Connected devices, data analytics, and the Internet of Things are transforming how the industry operates. The data gives insurance companies actionable insights to improve the customer experience as well as detect fraud sooner.

Customer expectations are ever increasing and insurers need to be ready to meet them or risk heightened customer turnover rates. If your existing claims process is struggling to keep up with customer demands, Actec can help. Contact us to learn more about our claims management solutions.

How to Improve Customer Satisfaction During a Claim

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December 2nd, 2019

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It’s common knowledge that first notice of loss (FNOL) represents the greatest opportunity to establish the insured’s satisfaction level. After this point, it is difficult to move the needle so it’s vital to ensure a smooth start to the claim. However, there are other factors at play when it comes to customer loyalty and retention.

How Millennials Are Changing Insurance Claims

It’s no surprise that millennials and other younger generations have a preference for technology when it comes to initiating and managing their claims. There is also a growing mentality that customers should be able to receive updates on their claim anywhere, at any time, in any way they so desire. This most often means having access to an online portal either through their smartphone, tablet, or computer.

In fact, when polled, 52% of auto claimants and 54% of homeowner claimants reported they would not recommend a provider that bars or lacks access to their preferred digital channel. Among customers that ranged between the ages of 18-24, that statistic jumped to 58% for both categories.

What makes this loss of recommendation so damaging is that younger generations rely on technology for research. If their peers are leaving negative reviews, it makes it very difficult for that insurer to appeal to them. Exemplifying the point, 41% of customers under 35 will post to social media and review sites about their negative experience compared to only 26% of customers aged 35-54 and 17% of customers 55 and older.

The Effect of Technology on Customer Expectations

The biggest challenge insurers are facing isn’t a shift in what their customers expect; it’s a change in where customers set the bar. Technology has allowed claims to move from FNOL to settlement faster than ever while granting customers unparalleled levels of access and control over the process. The pace isn’t likely to slow down anytime soon given the rate and sophistication of new tech and devices available on the market.

While every generation is growing more tech-savvy, there is no doubt that younger generations are driving the demand for transforming the claims process. Retaining customers lies in meeting these heightened expectations with a foolproof claims process. Contact the experts at Actec to learn about our custom solutions for your claim intake needs.

5 Simple Changes to Close Claims Faster

Posted on

November 18th, 2019

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It’s not uncommon to see job postings for insurance adjusters include desired skills such as fast worker or excellent multitasker. With so many boxes to check on any given claim, most adjusters believe they need to complete three tasks at once to stay on track. However, this approach often leads to time-consuming errors that can delay the claim. If adjusters take a single-task approach, they can usually complete their claims faster with fewer mistakes.

What is Singletasking?

Instead of trying to perform several tasks at once, adjusters tend to be more effective if they focus all their efforts on completing one task before starting another. Avoiding distractions is vital as it allows adjusters to seamlessly flow from one step to the next without losing track of where they were in the claims process or forgetting to complete a different task because they began a new one halfway through.

How to Speed Up the Claim Cycle

The following are several ways adjusters can remove distractions for flawless claims workflow:

  1. Turn off all devices that require active listening—no television, no radio, no podcasts or audiobooks, etc. While some tasks may be tedious, active listening distracts adjusters’ attention, which can lead to errors.
  2. Set office hours and stick to them. Otherwise, adjusters should turn off their phones and allow messages to go to voicemail. Stopping to answer the phone every 10-15 minutes can derail progress on a claim.
  3. Do not check emails. Emails are notorious for consuming the workday. Adjusters often start with good intentions—checking for updates and the like—but a five-minute once-over can turn into upward of an hour of clearing out spam or replying to emails out of habit rather than to advance any claims. Set specific times of day for checking emails to avoid the temptation.
  4. Perform work in batches. When following up on claims, stack them in a pile and work through them from top to bottom. Do not take calls or listen to other voicemails at that time. This creates confusion and can result in accidentally overlooking a claim. The same is true for emails or writing estimates.
  5. Put up “Do Not Disturb” signs. This is especially vital when traveling for claims. Housekeeping for hotels coming and going can disrupt workflow, as can well-intentioned friendly coworkers dropping by to chat before heading out to their next claim.

Closing claims faster and with fewer errors improves an insurer’s bottom line while boosting customer satisfaction. To learn more about improving claims processing and management, contact the experts at Actec.

Number One Reason Why Customers Switch Insurance Companies

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November 4th, 2019

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Customer retention is a huge part of the financial stability equation for insurance providers. It costs significantly more money to acquire new customers than it does to retain existing accounts, but many insurers struggle to identify what is important to their current clients as well as pain points that influence them to find a new insurer.

What Do Policyholders Want?

Not much has changed on the playing field regarding what policyholders want from their providers, which leaves many insurers flummoxed on what needs modifying. However, customer expectations are significantly higher than in previous years due to a massive increase in technology. Researching rates, typical settlements, and more are easier than ever. Online reviews and mobile apps also play a critical role in how individuals choose their insurance providers.

However, the single most pivotal influencing factor on a customer’s loyalty is their claims experience. This explains why 30% of customers report they’re considering changing insurance companies in the coming year despite 93% describing themselves as satisfied with their current provider. What’s even more telling is that customers who filed a claim in the preceding two years reported they are twice as likely to switch providers. What’s intriguing is the claim outcome, good or bad, doesn’t play a role in their decision.

6 Key Claim Factors That Cause Customers to Defect

Because customers with positive claims outcomes are still more likely to switch insurance providers, insurers need to know what aspects of the claims process is driving the change. While the perceived fairness of the settlement will always top customers’ lists, insurers need to focus on the following to guarantee customer satisfaction during the claims process:

  1. Speed of settlement
  2. Transparency of the claims process and explanation of the next steps
  3. Ease of communication with the insurer to receive an update at any time
  4. Regular, timely updates without the customer reaching out first
  5. Empathetic insurance representatives
  6. Multiple communication methods to discuss the claim including phone, email, mobile app, etc.

The biggest takeaway is that the final outcome of the claim isn’t always what matters to customers. Even if they receive a settlement that makes them happy, customers will start shopping for new providers is the experience of the claims process is lacking.

If your insurance company is struggling with an outmoded claims process, Actec can help. Contact us to learn more about our full-cycle claim and incident reporting solutions.

10 Factors Top Performing Claims Adjusters Have in Common

Posted on

October 21st, 2019

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Having numerous high-performing claims adjuster on the payroll is a huge asset for any insurance company. Their value is undeniable as they produce quality work with few errors. However, while the number of claims an adjuster processes is an easy metric to gauge productivity, several other elements set excellent adjusters a notch above the rest:

Reliability

While every employer expects his or her employees to arrive on time, reliability delves much deeper than that. Top-performing adjusters display this by:

  1. Completing claims in a timely manner
  2. Displaying integrity in their work
  3. Utilizing critical-thinking skills
  4. Taking steps to improve themselves

People Skills

Because adjusters often work with individuals following a loss, they must possess a compassionate temperament. Excellent claims adjuster take this a step further by:

  1. Employing good communication throughout the entire claim cycle
  2. Using negotiation skills to ensure the best outcome for the client
  3. Always keeping customer satisfaction at the forefront of their actions

Competency

Even if adjusters are reliable and good communicators, they need to be well versed in their craft. The best adjusters shine in the following areas:

  1. Estimating accuracy so the insurer doesn’t overpay but the client still receives a fair settlement
  2. Superior documenting skills so all work is verifiable and beyond reproach
  3. Comprehensive knowledge of policies to ensure claims accuracy

Having high-quality claims adjusters is a huge asset for insurance companies, but adjusters are only as good as the systems they use. If your claims process is holding back your adjusters from working to the best of their abilities, Actec can help. Contact us to learn more about our full-cycle claim and incident reporting solutions.

How to Solve the Top 4 Challenges in Claim Status Inquiries

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October 7th, 2019

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Monitoring the status of a claim is important to ensure it funnels through the correct channels without time-consuming errors, denials, and more. However, providers often report that monitoring a claim’s status is a heavy burden as it takes up considerable time. While one claim only requires around 14 minutes and costs an estimated $7.12, medical providers made 737 million claim status inquiries by phone, fax, or partial electronic means in 2018 alone.

The following are the biggest hurdles for providers, practices, and billing teams when it comes to claim status inquiries:

  1. Manual inquiries are costly and time consuming. Looking at the statistics above, manual claim inquiries cost billions of dollars and took up millions of work hours.
  2. Claim status inquiries don’t yield actionable results. Many claims follow their course as they should, which means providers waste their time following up on claims that aren’t at risk of denial.
  3. There are often limits to how many inquiries a provider can place on one call. This means providers must make multiple inquiries, taking up even more time.
  4. Lack of visibility makes prioritization difficult. Providers can’t intrinsically know which claims offer the highest yield, which can mean they give unnecessary time and attention to lower priority claims.

The simplest way to shorten the amount of time and money spent on claim status inquiries is to automate the process. Compared to manual and partially electronic claims, fully autonomous claim status inquiries cost $1.89 per claim and only take up around five minutes of the provider’s time. This means with 100% electronic claim status inquiries, the healthcare industry could save as much as $2.6 billion per year.

Improving the claims process from start to finish not only improves customer satisfaction, but it also helps save time and money for the provider while boosting transaction rates for the insurer. Insurance companies will receive more claims on a faster timeline, which translates to more cash flow. To learn more about improving the claims handling process, contact the experts at Actec.

Claim Reporting and Claim Management: Streamlining the Process

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August 3rd, 2019

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shutterstock_138016598 - CopyImproving claims management efficiency is a multi-pronged effort. It isn’t enough to streamline processes or hire the best people. Insurers also need to upgrade their technology and enhance communication efforts. By making the necessary changes, efficient insurance providers can gain an edge on the competition. Clients value swift claims resolutions with few hiccups. By processing claims swiftly and accurately, insurers can improve customer satisfaction, increase revenue, and lower costs.

Start with the People

Insurance agents are the first people customers will interact with during a claim. Finding the best candidate relies on several factors. These include:

  • At the very least, employees should have stellar qualifications. Unqualified employees can cause delays and make expensive errors.
  • Employees need to have the right attitude to manage claims and interact with customers. When a customer calls in to report an incident or to get an update on an open claim, they are likely to be in an emotional state. Employees need to be able to interact with customers in a pleasant, calming, and professional way.

Implement Good Processes and Technology

Establishing a solid claims process can help eliminate redundancy and unnecessary steps. The following is an example of a good workflow:

  • Create the claim
  • Verify the claim
  • Request corrections if necessary; verify again
  • Provide an expert review
  • Based on the review, reject and close the claim or resolve the claim
  • If the claim is to go to resolution, seek final approval from superiors
  • Close the claim

Insurers that implement a solid claims management process can then focus on improving the technology side of the claim. They can automate certain processes to streamline the entire experience. Today’s customers expect a certain level of speed and care that outdated legacy systems cannot provide.

Communication Is Key

Many customers report dissatisfaction with their experience because the claim took much longer than expected to resolve. While insurance providers cannot speed up certain processes, they can manage customers’ expectations. By utilizing effective communication, insurance agents can keep customers abreast of where the claim is in the process and how long it will take to reach a resolution.
If your insurance company is struggling with inefficient claims processes, Actec can help. Our Full-Cycle Claim and Incident Reporting Solutions provide improvements to first notice of loss (FNOL) and claims management. To learn more, contact us today.

6 Common Mistakes Adjusters Make and How to Prevent Them

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July 22nd, 2019

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Mistakes happen, but they don’t have to happen often nor should they. Whether it’s a bad judgment call or a simple oversight, mistakes add up to much bigger issues down the line. The following are some of the most common errors that auditors encounter when reviewing claims:

  1. Failing to perform a thorough investigation. With multiple claims to juggle, it’s possible for a detail or two to slip through the cracks. However, missing important information such as the nature of the claim or the severity of injuries can lead to prolonged claims due to incongruous settlement offers. On the flip side, assuming injuries are extreme based on face value can result in overpayment as well.
  2. Failing to read medical reports. Not keeping up with medical reports can lead to poor control over medical treatments. Insurers may pay out for unnecessary treatments or erroneously withhold payments for medical care. Reading the medical reports thoroughly can help adjusters stay on top of those claims details.
  3. Failing to close claims in a timely manner. While some factors are out of adjusters’ hands, auditors have found many mistakes result from adjusters mismanaging their time. This prolongs claims and ultimately costs the insurer more money.
  4. Failing to keep proper documentation. Not only does this irritate customers, but it also costs time as well as money to re-confirm details multiple times. Taking detailed notes on all incoming documents/information expedites the claims process.
  5. Failing to maintain good contact with the claimant. Keeping the insured in the loop helps boost customer satisfaction, but it also helps keep insurers up to date on any new developments. Insured customers don’t always think to contact their insurer for every claim related event/situation after the initial incident.
  6. Failing to maintain claim continuity. Handing claims off from one adjuster to another without a specific reason (i.e. more appropriate field of expertise) can cause errors during the exchange and confusion for the customer.

For every mistake that occurs during a claim, the cost of the claim increases. Insurers can’t afford repeat mistakes, especially when the majority of them are easy to avoid. To that end, implementing a full-cycle claim management system can help dramatically. Contact the experts at Actec to learn more.