What Customers Want from Their Insurance Provider

Posted on

January 27th, 2020


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.

FNOL and Technology: Human Element Still Required

Posted on

February 23rd, 2017


shutterstock_138016598 - CopyAs more cars integrate some sort of smart technology, auto insurance agents find themselves wondering if they will soon be out of a job. While OEMs can report accidents and get the first notice of loss (FNOL) process rolling, agents can rest easy. Customer, particularly younger customers, still want a human element involved in their claims process. This is great news for insurance agents as Generation Y made up the largest portion of auto insurance claimants for 2016 at 40%—this is a 7% increase from 2015.
While their customer satisfaction levels are the lowest of all the generations making claims, their perception is improving. Generation Y also has significant influence over the auto insurance industry. Because of this, many insurance providers are taking steps to address this generation’s wants and needs.
While Generation Y values smartphone apps and text alerts, they appreciate human interaction more. For example, a Generation Y claimant is more likely to use a mobile app for FNOL purposes than other age groups. However, they will want to talk to an actual agent about next steps and how their claim is progressing.

The Shifting Role of Insurance & Claims Agents

Successful insurance agents will adapt to new technology to meet their clients’ needs. Learn how customers are using technology and be ready to fill in the gaps. In addition, when a customer calls they have much higher satisfaction levels when they remain on the line with that agent. Their satisfaction drops if the original agent transfers them to a call center and it takes an even greater hit if the agent tells the customer to contact the call center himself or herself.
Customer satisfaction affects customer loyalty. Agents cannot afford to neglect client’s concerns or rely too much on technology to do the heavy lifting of a claim. To learn more about improving your business’s approach to FNOL or overall claims process, contact the experts at Actec.