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.
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.
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.
There is a steep learning curve for new adjusters just as there is for anyone entering into a new career track. Insurance adjusting has a broad appeal due to how easy it is to enter the industry and how lucrative it can be straightaway. Once an adjust passes their state license exam, they’re good to get started. They also know they won’t get paid until they close their claims. This usually results in the mentality to close as many claims as possible. However, several hurdles impede an adjuster’s ability to close claims rapidly and these challenges can result in mistakes.
When customers file a claim, they want a rapid but fair resolution. Insurance companies that establish high-quality standards of service and consistently adhere to them experience better customer retention than those that don’t. In addition, implementing these standards can reduce the cost of claims as well as the amount of time it takes to process them. While most insurers know this, many struggle with how to achieve this on a regular basis.
When a customer has a complaint about their claim, there is usually a legitimate reason for it. However, upset customers can become irate and difficult to deal with for insurance representatives. Even so, insurance companies can’t afford to overlook dissatisfied customers. It costs much more to attain a new customer than it does to keep an existing one. The following are several methods insurance providers can use to address claim complaints to improve the customer’s satisfaction.