The March of Technology: Insurers Set to Radically Improve Claims Service

The infamous United Airlines customer who vented his feelings about his service experience — in song on the video-sharing Web site You Tube — underlines an increasing phenomenon. Customers believe they have a right to good service. The issue is not exposing dreadful service to the rest of the world in an attempt to ‘name and shame’, it is how to get the appropriate kind of responsive help when it is required and via a channel that suits. Be this via email, phoning the call centre, SMS or other methods, customers want to be able to keep in touch, be informed and be offered a more personalized service, when it suits them and in a manner that meets with their needs and expectations.

For insurance providers still keen to curb costs, this presents some interesting challenges. This is particularly true for the claims operation, which needs to respond rapidly to the consumerization of technology that is already shaping customer trends and behaviors elsewhere. How will insurers’ claims operations keep up with the growing expectations and demands of the digitally enabled customer? How can they do this in a way that enables them to increase revenues, hold onto market share and increase customer satisfaction, while maintaining some control over the relationship?

Purchasing decisions

While cost remains a frequent factor in the insurance purchasing decision, this is clearly not the only thing that is important. More and more customers are looking for a responsive service, so much so that their impatience is prompting them to shop around and chop and change more often. Being able to buy insurance products online has led to a huge increase in DIY insurance buying, cutting out the financial adviser or broker. Aggregators generated in excess of one-fifth of private motor policies in 2007 and their business has been growing at around 20% year-on-year since.

The good news is that advances in technology are now able to offer many opportunities to make a dramatic difference to the customer experience. And many of these are available as simple additions to existing systems and for a fraction of the cost that might be expected. For instance, we know that customer recognition is an important part of customer retention.

But just how much of the data an insurer captures, related to each customer, ends up having a bearing on good customer service or a total view of the customer? One way to do this is to use a system that recognizes when customers ‘land’ on your website, so that the site is personalized to suit their needs. This could include offering quotes for premiums around the policy renewal date or offering additional help, such as taking them to an area where ‘frequently asked questions’ show how to access the services they require. Gathering data about buying behavior can also be used to send timely email or SMS reminders to the customers — saving them, for example, the hassle of locating a renewal quote reference number that isn’t to hand. If Amazon can say “welcome Keith” every time I go there, and offer me a personalized set of recommendations, why doesn’t my insurer’s site do something similar?

This article, which appeared in a recent issue of The Post magazine in the United Kingdom, explore the latest trends in technology such as social networking, that are expected to have a dramatic impact on the way claims departments deliver their services. Download the full version of the article (PDF).