Insurance is there to help us during some of the worst moments in our lives. Handling claims is challenging, as tensions are high and everyone wants their claim resolved as quickly and painlessly as possible. In this blog post, we uncover how satisfied people are with their claims experience and how it can be improved.
Not exactly loyal, but fine with it
A lot of drivers simply let their insurance policy renew automatically. A study from MoneySuperMarket states that 25% said they looked around for different providers but couldn’t be bothered to switch. This means that these customers aren’t exactly loyal, but they’re fine with the current situation. However, if a customer needs to file a claim and has a poor experience, it would most likely push them to switch providers.
We did some digging to find out how many people have a poor claims experience. The report by Accenture (2022) found that 31% of the claimants were not fully satisfied with their home and auto insurance claims-handling experiences over the past two years.
Why is the claims experience poor?
Here are some reasons why customers might have a poor claim experience.
- Long processing time
One of the most common complaints is that it takes too long for the claim to be processed. This can be quite stressful, especially if customers are in urgent need of the payout or need their car fixed ASAP.
- Poor communication
Customers may have to provide the same information to different people repeatedly, which can be frustrating. Additionally, customers might have to wait in silence for weeks without receiving any updates regarding their claim’s status.
- A lot of bureaucracy
When the claims process involves numerous forms, multiple approvals, and various departments, it can become overwhelming. This can make clients feel like they have to jump through unnecessary hoops.
- Technical problems with online claims submission
Technical issues with online claims submissions, such as website crashes, errors in form submissions, lack of mobile compatibility, or the need to download additional apps, can cause frustration. These problems can make the insurance company seem unreliable and inefficient.
- No clear instructions
When customers do not receive clear guidance on how to file a claim, what documentation is needed, and what the steps involved are, they can easily make mistakes. These mistakes can result in rejected claims or additional delays, causing dissatisfaction.
What can insurers do to improve the experience?
We believe that AI technologies could significantly improve the claims process. According to an Accenture report, 79% of the claims executives surveyed said they believe that automation, AI, and data analytics based on machine learning can bring value across the entire claims value chain — from flagging fraudulent claims to damage assessment and loss estimation, reserving, adjusting, processing optimization, and subrogation. And we agree.
Insurance is a business where the profit rate is extremely low, at 1-2%, and competition is intense in most markets. This means that insurers need to execute small initiatives that make them stand out from their competitors. Every day, more and more insurers are hopping on the AI train and investing more in these solutions. AI is no longer just hype, but an established capability that most companies are leveraging for themselves.
