Claims form the core of the relationship between insurance companies and their customers. Every claim is an opportunity for insurers to demonstrate their value, strengthen customer loyalty and boost retention.
Executive SummaryThe claims experience is a moment of truth for insurers who have few other interactions with their customers. Forward-thinking carriers are rapidly embracing data analytics to make the claims experience more transparent and less time-consuming for policyholders. A sound approach to claims analytics starts with a carrier's own distinct data about losses and customer history and expands to include input from a range of new technologies available for use today.
EY’s research bears out the importance of the claims experience within the relatively low-touch relationship between insurers and insureds: 87 percent of policyholders believe the claims experience affects their decision to remain with insurers.
It is safe to say that the claims process is the most visible and meaningful customer-facing function in insurance, a moment of truth. Satisfy customers with a quality claims experience, and loyalty increases. Fail to deliver what customers reasonably expect, and suffer the penalties of lower satisfaction and higher cost.
Social media has increased the stakes for insurers regarding the customer experience. The risks and costs of a bad claims experience can be amplified if customers choose to share their dissatisfaction online. Social media channels also give customers access to more information about the companies they do business with—information the companies do not control. The proliferation of advertising by attorneys seeking claimants suggests there are many dissatisfied claimants.