The insurance industry has changed drastically in recent years with price frequently becoming a primary differentiator between companies. If an insurer chooses to be a warrior on today's battleground, the chances are that part of the battle will include drawing swords over the issue of price. Businesses have been hacking away at each other's value until there is nothing left but the bones of price, essentially cannibalizing the industry within the market. This is evident with every insurance marketing campaign that touts, “I can save you money,” in essence turning insurance into a commodity.

The role of the agent has changed a lot through the years as well. There is more pressure for an agent to produce while there is a price war, and companies usually do not want agents heavily involved in the claims process. However, changing customer expectations have led to claims centers, 800 numbers and online portals which have become the new face of customer service, one of the last few weapons to use on the battlefield. Mechanizing customer service can have harmful effects on a company's value proposition.

Consider the last time you were excited about purchasing a new computer or buying the latest cable/internet package for your home. The buying experience, along with price, may have been fantastic, but then something happened and you needed help. Did you go back to the person who handled the sale? No. You called the 800 number. What was that experience like? What is that experience like for your customers? In a business climate where new buyers make their transactions online, are you being taken out of the equation? Did the customer buy the policy or did they buy you? These are some of the difficult questions we need to ask ourselves as professionals.

Who you work with matters

What does this have to do with restoration and its relationship with insurance? It is about leveraging relationships as a trusted professional to become a hero for customers during their hour of need to truly build a business on customer service. This means more than listening and anticipating the needs of customers before they know they have them. That is how winners compete. Every agency that sells personal or commercial property and casualty policies should have a number of companies that they and their customers can trust.

It is hard to understand what a customer is going through for those who have never personally experienced a property loss. The level of confusion and anguish is tantamount to a serious medical emergency. Imagine coming home from work to find everything is soaking wet and covered in soot. In a few minutes, there will be a small army of strangers invading your sanctuary when all you wanted was to make a nice meal after a long day of work.

Not only do you suffer from the loss of property, but there are unexpected guests investigating the most intimate rooms of your home. Can you think of a more important moment in life when customer service and trust was this vital?

Who an insurer works with or recommends to a policyholder matters. A recent J.D. Power survey found that 31 percent of Gen Y policyholders said they want additional help in seeking a contractor, but only 42 percent of those who contacted their insurers were actually able to reach a live person when they called.

What if after a loss someone said, “I am sorry to hear that. Do your best to stay calm. Here are several contractors we've worked with before. I can call XYZ restoration to come out and take care of you. I work with Wes all of the time, and he will make things better for you.” Can you imagine all of the hassle and uncertainty that you just saved your customer from? Did you change the game of customer service into terms of being a true hero? You did in the eyes of that customer.

The same factors apply to helping a policyholder find a repair shop after an auto accident or temporary housing or office space after a large loss. But these companies must be vetted ahead of time so that the agent or adjuster isn't scrambling to find a service provider in the midst of the loss.

In addition, this relationship goes both ways. When the restoration company arrives and first speaks with the customer, they need to fill the other half of the customer service glass. “I am so sorry for your loss. I am glad that Mr. Smith from ABC Insurance called us. We do a lot of work for his company and he always takes excellent care of his people. I know he was very concerned about you and that's why I am here.”

Now we are no longer strangers, we have set the tempo for what will be great customer service from start to finish. When the agent or adjuster and the service provider have a good relationship, all other aspects begin to fall into place. Fast service, fair estimates, good communication and speedy repairs are the byproduct of a strong relationship with a reputable company.

Restoration firms, auto repair outlets and other service vendors frequently spend more time with a policyholder than an insurer or its personnel, but they still represent the insurance company to that insured. A professional partnership between an insurance professional and a service provider is a powerful thing for customers and allows a company to differentiate itself in the industry.

Take the time to interview restoration companies, water mitigation firms, roofing contractors, repair shops and other vendors to find those whose reputations and values match your company's the best so the level of customer service provided meets everyone's expectations.

Aaron Jacobs works for Compleat Restorations and Compleat Environmental Services in York, Pa. He is ASHE and IICRC certified, and assists with infection control for medical and special care facilities.

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The right partner can be smart business

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