Claims management is one of the most important - and challenging - aspects of providing motor insurance. Drivers expect the process of making a claim to be simple and painless.
As such, there's enormous pressure on insurers and brokers to live up to their expectations, as failure to do so is likely to impact customer retention levels.
In this blog post, we'll discuss some of the common pitfalls brokers face during the claims process and how they can overcome them to provide a better customer experience whilst improving efficiency.
Problem 1 - Incomplete documentation
Missing or inaccurate information can prolong the process of resolving the claim, which in turn leads to customer dissatisfaction and churn.
The root cause of this problem lies in the FNOL process. If the capturing of critical information is not carried out successfully at this stage, it can lead to major issues with missing documentation later down the line.
FNOL is a difficult and complex process because it requires both hard and soft skills from claims handlers. However, by outsourcing the task to an FNOL specialist, you can pass the process on to a skilled team who is available around the clock to respond empathetically to customers and offer them peace of mind to ease the stress of the claims process.
Problem 2 - Disjointed customer journey
The claims process is complex for brokers to manage as it can involve multiple suppliers, such as repair networks, insurers and mobility providers.
It can therefore be difficult to create a seamless, consistent customer journey during the claims process. In the worst case scenario, you are burdened with managing and coordinating multiple suppliers, while customers become frustrated by a confusing and non-transparent process where it is virtually impossible to get an update on the status of their claim.
The solution is to choose your claims suppliers carefully. By working with a single end-to-end solution provider who can manage everything from FNOL to vehicle replacement and repair, including insurer negotiations and liability assessment, you can create a frictionless customer journey. This way, when a customer is involved in a road traffic incident, your claims process could make a positive impression and Increase the likelihood of you retaining their business in the future.
Problem 3 - Lack of communication
One of the biggest hurdles during the motor insurance process is overcoming a lack of communication between the broker and the client. Too often, customers struggle to get an answer on the status of their claim due to the number of suppliers involved which can ultimately lead to dissatisfaction and churn.
To overcome this, it’s important to establish a single point of contact, ideally from an outsourced supplier. This will provide the customer with simple, timely and accurate updates on the status of their claim.
Brokers should also collaborate with their suppliers to explore the possibility of digital applications and platforms to allow for self-service check-ins on claim status from any device and location.
Problem 4 - Outdated manual processes
Another common problem brokers face is the lack of digitisation within their claims management systems. It isn’t always easy for customers to submit and manage their claims online, which typically is the quickest way to do so.
Some incident management providers have made significant investments in modern self-service applications that enable customers to report and manage car incidents without the need to speak to a person in a call centre. Although some customers do prefer to speak to a human in this situation, others prefer the convenience of online methods instead. The demand for digitisation and automation will continue to grow, amongst younger drivers.
It is understandable if you are hesitant to make major investments to develop and implement your own self-service technology. An alternative, more cost-effective option would be to work with an outsourced partner who already provides a digital process for the changing demographic.
Problem 5 - No measurement of customer satisfaction
It can be difficult to know whether your process is satisfactory to customers until a complaint or issue is raised.
To differentiate broker services based on customer satisfaction, it is essential to develop a deep understanding of how your customers feel throughout the claims process and identify opportunities for improvement.
You can do this by capturing feedback at each step of the process. Ask questions about the ease and efficiency of the claims process and how empathetic and helpful the service is. By doing so, you’re more likely to anticipate your customers’ needs and exceed their expectations.
Again, working with an external claims management provider can help you to do this. Choose a partner who does more than simply uphold their service level agreements and passing on basic feedback. The ideal claims management provider should track key customer satisfaction metrics from the beginning right through to the end of the claims journey. This capability will then allow you to focus on continually improving your process.