Homeowners submitted record high claims this year after several severe weather incidents wreaked havoc across the nation. However, their overall satisfaction with the claims process was at a record high. Insurers are able to do so with improved communication. While many believe faster claims resolution improves customer satisfaction (it does), stellar communication can make it even better. This is because insurance representatives can manage the customer’s expectations for a timeline to resolution.
The Facts About Customer Satisfaction
A 2018 study by J.D. Power revealed several illuminating facts about the current state of the insurance industry.
- Customer satisfaction is at a record high. There are certainly areas that need improvement (Texas and Florida are below the new average), but, in general, customers are happier than ever with their insurance providers. On a 1000-point scale, property claims reached a new height of 860 points. For the second year running, satisfaction with property claims is matching auto claims.
- Communication and responsiveness are vital to improved satisfaction. Customers want rapid claims resolution, but this is not always realistic. When insurers manage their customer’s expectations on how long it will take to close the claim, the customer has a better overall experience.
- Adverse weather is taking its toll. Customers are happier with their property claims—except in hard-hit areas. Texas and Florida experienced significant weather issues in the past year, and customers were not happy with how their insurers managed their claims. In particular, time to resolution doubled for weather-related events compared to non-weather-related events.
When scoring insurers, the study looked at five categories (listed in order of importance): settlement, claim servicing, first notice of loss (FNOL), estimation process, and repair process. Insurers that are struggling with low customer satisfaction should focus on improving these areas. While the study ranked settlement as the number one priority, FNOL represents the earliest opportunity insurers have to set the tone of the claim cycle. Actec can help insurers enhance their FNOL process and improve their claims management system. To learn more, contact us today.