What factors drive a positive or negative customer experience?

Insurance is only as good as the consumer’s experience during the claim’s moments of truth. Positively shaping insureds’ and claimants’ experiences and avoiding churn during the process is critical for carrier success. When it comes to P&C insurance, customer retention is the name of the game.

Accenture reported that 41% of policyholders plan to switch carriers after one claim, even if they had a good experience. That number jumps to 83% if they are dissatisfied. It’s no surprise that it costs nine times more to acquire a new customer than keep an existing customer. So how do you know what drives a great customer experience?

To help answer this question, Hi Marley, the communications platform improving carrier and policyholder communications, conducted a study of nearly 25,000 customer satisfaction surveys across 50 P&C customers in their database to determine the top drivers for optimal and suboptimal claims experience.

The data clearly shows the top drivers of positive and negative claim experiences fell into four main categories: timeliness of service and resolution, communication, process effectiveness and adjuster attitude and approach.

Timeliness of service and resolution: Responsiveness and fast resolution are crucial factors in driving customer satisfaction. 21% of one-star reviews cited long wait times and lack of response correlate directly with a negative user experience. No one wants to wait around for days to be told their car is a total loss. Studies have shown that 80% customers would leave carriers if they were dissatisfied with response time. That high turnover is extremely costly and, with the right technology and processes, highly avoidable.

Communication: Clear and open communication is essential. We found communication is the top driver for one-star reviews; 34% said their negative experience was due to poor or ineffective communication, however, it is also fundamental for positive experiences (16%). Policyholders want to be kept up-to-date throughout the process of their claim. With today’s technology, customers have more options for convenient channels of communication. Carriers that offer text/sms solutions allow their customers to easily activate a claim, upload photos and provide channels for adjuster/customer communications. While some customers may enjoy not having to speak directly with a live person, many (82% according to a LexisNexis survey) do want the option to reach out to a human. Have flexibility within the technology or offer the option to reach out to a human throughout the claims process.

Process effectiveness: Carriers should combine technology-enabled efficiencies with human empathy. At a claim’s moment of truth, no amount of technology or process efficiency can replace an adjuster’s human approach. For many, needing to submit a claim is a first-time experience and it can be overwhelming. Adjusters are the critical link in delivering empathetic communication, explaining the claims process, setting claim handling expectations and providing a much-needed advocate when dealing with the stress and frustration that inevitably accompanies an auto accident, property loss or another type of claim.

Adjuster attitude approach: We know that adjuster attitude and approach have the most significant impact on customer satisfaction (driving 46% of five-star reviews and 23% of one-star reviews). Customers want to be treated like people in need, not just a claim number. Carriers with multi-channel communication best practices in place that effectively leverage texting solutions to deliver clear, timely communication with human kindness and empathy will be the winners in driving world-class customer experiences.

When looking to the future of claims and customer experience, implementing the right tools and strategies to improve communication and responsiveness with empathy will pay off. Digital, automation and self-service tools speed up the claims process, ultimately creating a faster, better experience and enhancing customer satisfaction. Increasing automation narrows the number of touchpoints carriers have, making each of those human interactions even more important.

Insurance is a people-oriented, people-focused business, so it’s crucial not to lose the human element. When dealing with people’s emotions and vulnerability in a time of need, nothing can replace empathy. Carriers that implement a hybrid approach combining the benefits of automation and digital transformation, while providing personal touch where necessary will have the best opportunity for claims successes and competitive advantage.