A customer-centric approach to insurance claim resolution pays off in terms of improved satisfaction, which in turn leads to renewals. That’s a key message of the the newly released J.D. Powers 2014 U.S. Auto Claims Satisfaction Study, which measures auto insurance customer satisfaction with their claims experience. The study shows that satisfaction continues in its five-year improvement trend. Among the key findings, agents can find some important pointers.One is that being proactive yields a big increase in satisfaction. “Satisfaction is 918 [on a 1000 point scale] among the 53 percent of claimants whose agent initiated contact with them during the claims process, compared with 827 among those who initiated contact with their agent.”
The study was based on responses from more than 10,000 customers who had settled a claim in the prior 6 months. It measures satisfaction with the claims experience for auto physical damage loss, which may include some or all of the following factors: first notice of loss; service interaction; appraisal; repair process; rental experience; and settlement. It offers a ranking of U.S. insurers against these measures.
The survey also underscores something that we all know (or should know): Millennial satisfaction is linked to digital engagement.
Millenials (born between 1977 1nd 1995) reported a 93 point lower satisfaction score than pre-Boomers (born befor 1946), and a 57 point drop from Boomers (1946-1964) and a 28 point drop from Gen Xers (1965-1976). Note that overall satisfaction drops with each generation.
In his report on the survey in Insurance Networking News, Lenny Liebmann notes:
” … as reflected in the low scores for Millennials, insurance company technology rollouts are not keeping pace with customer expectations. In fact, just 24 percent of customers report receiving email updates on their claims. While that’s up substantially from just 15 percent in 2011, it still is less than a quarter of survey respondents. This digital shortfall may not bother Pre-Boomers, but Millennials obviously find it problematic.
Technology is also helping accelerate the resolution of certain types of claims—another factor in customer satisfaction. In the case of claims involving a tow, for example, insurers have managed to cut more than a day and a half from the time a customer reports a loss to the time the vehicle is repaired (16.6 days in 2013 vs. 15.0 days in 2014).”