When my father founded his company in1981, almost no one thought business agreement skills wereessential for rank-and-file claims people.

But times change and today almost no one disputes the importanceof developing and refining “people skills” for adjusters.

While the fundamentals of human interaction aren't subject to alot of change over time, the modes by which we communicate, and thechannels through which we do so have changed dramatically andirrevocably.

Within the last decade alone, communication technology hasupended everything from parenting to presidential politics. We'reabout to see what it's like to have a Tweeter in Chief.

Claims handling & customer experience

What does all of this change mean for claims handling? And morespecifically, for the insurance customer experience? In a word:challenge.

During the first wave of mass access to new communicationtechnology in the mid-1990s, the phrase “high-tech, high-touch” wasborn. It was an attempt to highlight the importance of compensatingfor increasingly faceless, data-centric channels with as muchhumanity as possible. We've been struggling with that equation eversince.

Time has fostered familiarity, social media platforms haveamplified convenience, and in some ways it might feel as though ourtechnology has become more humanized. Digital channel communicationhas indeed gotten more casual and colloquial. But informality isnot the same as real human connection.

Technology is a poor substitute for actual person-to-personcommunication when it comes to building rapport. (Photo:iStock) 

The science of humanity

Why does an emphasis on humanity matter so much when it comes tomore efficient, more effective claims handling?

Despite our tendency to believe that agreements are achievedmainly based on logical factors like settlement amounts, 21stcentury neuroscience has proven that emotional factors aremassively more important. When it comes to influence, persuasion,and decision-making — even for the most calculated andcommercial business decisions — the emotional centers ofthe brain are what drive all other cognitive functions. It's notoptional. It's science.

It turns out that the human connection aspects of a businesstransaction — establishing rapport and orienting topersonality styles, for example — amount to much more thanetiquette compliance or social finesse. These skills can literallymake or break an agreement. More so, even, than getting the rightnumber on a check.

So how does digital channel communication play into thispriority? According to research, not well.

In a study of negotiation at Columbia University, managementprofessor Michael Morris found that negotiators who communicatedexclusively by email exchanged three times as much information.Sounds good. But they also built less rapport, which led toincreased tensions, and actually lowered the average economic valueof the resulting agreements. Those who negotiated by email inMorris's study trusted each other less, and were not as interestedin working together again.

“Rapport creates a buffer of positive regard,” said Morris, “andwhen it's not there, negotiation becomes brittle, and vulnerable tofalling apart.”

Misinterpretation

The digital channel lacks a whole range of “human cues” likefacial expression and tone of voice. That makes it difficult forrecipients to decode meaning accurately. This is compounded,researchers say, by the speed, volume, and immediacy of digitalcommunication creating an urgency that pressures us to think andwrite quickly — which can lead to carelessness orunintended consequences.

Management scholar Kristin Byron of Syracuse University suggeststhat one of the most common of these unintended consequences,misinterpretation, tends to come in only two forms: neutral ornegative.

Think about the implications of that:  If our messageis in any way unclear, jumbled or vague, the best we can possiblyhope for is a neutral emotional response. It may be negative, butit will rarely be positive.

Related: Time to talk: Let's prevent communicationbreakdowns

Meaning is in people, not words, and now there is overwhelmingscience proving the near impossibility of successfully buildingagreement without the additional signaling factors offered by phoneor face time.

We've all been subjected to the miscues created by emails andtexts. Tone, nuance, intention and meaning — virtuallyeverything related to successfully engaging the emotional brain— gets lost in digital communication. If we lose theemotional brain, we've lost the ability to influence, persuade andnegotiate successfully.

Read on for six ways adjusters can improve their digitalcommunication with policyholders.

Offering policyholders multiple communication channels canhelp offset the digital divide. (Photo:Shutterstock) 

Antidotes for the digital dilemma

To fully understand communication between claimants and adjusters,it's important to know how communication signals are interpreted,and how those interpretations can change depending on what channelwe're using.

Digital channels like email and texts contain not only thefewest signal categories, but also miss the ones that are mostimportant according to research for successful negotiation andagreement building. This presents some real challenges in a timewhen more and more customers prefer the convenience of digital.

What can adjusters do?

• Recognize the limitations of digital. Greater speed, volume andconvenience of information exchange is of little benefit to moreefficient or successful negotiations.
• Make genuine human connection a settlement priority, andrecognize that this cannot be achieved through electronic messagingalone. Building trust, getting cooperation, persuasion andnegotiation requires phone time or face time.
• Choose face-to-face meetings or phone time wheneverpossible.
• Don't seek to establish rapport, activate “friendship triggers”or build trust by email or messaging. It doesn't work.
• Negotiate directly whenever possible, limiting the use ofdigital channels to confirmations, follow-ups and scheduling.
• If you must communicate electronically, overcompensate withniceties, friendship triggers, and “humanizing messages.” Workthose emojis!

Russell P. Granger is CEO of Rising TidePartners (formerly Insurance Learning Systems), a consultingand training firm specializing in customer communication.