"Even if insurance execs realize there is a deficiency in their use of technology, the issue comes down to whether insurers' customer-facing staff have integration and training programs to keep pace with technology innovation and whether customer education initiatives are helping customers leverage service technology," said Kelahan.

Table of policyholder dissatisfaction rates.

The need for speed in settling insurance claims

Other factors can also drive claims dissatisfaction, according to Kelahan. Key elements include clunky claim capture and a lack of digital servicing tools.

Inadequate capture of claims. While customers are generating claims on their insurance company's website, not enough information is collected, creating a ripple down effect of unnecessary calls between the customer and agent. This defeats the benefit of customer-generated claims.

The customer gets lost in the claims information shuffle. While insureds want to digitally connect with their insurers, customers still rely on phone-based insurance agents for support. Since the status of claims investigations are currently not available online, insurance agents do not always have the same access to the information shared with insureds. This can lead to miscommunication between the customer and the insurance agent.

AI and machine-learning models still need to mature. While many organizations are adding customer-friendly applications such as chatbots, rich text messaging and guided scripting, many insurance companies' AI models haven't had sufficient analysis experience for machine learning to produce accurate outcomes compared to humans. The models will need to mature more fully in order to truly improve the claim settlement process.

Virtual estimates are powerful tools but still lack the ability to provide a comprehensive claims resolution to customers. Virtual estimating methods are effective in providing a settlement, but they are not comprehensive enough in damage capture. If there are issues with the original settlement, resolution often cannot be handled virtually, creating more delays and resulting in dissatisfaction.

In the end, the insurance business is all about paying claims.

Special Reports /

Dissatisfied customers pose a major risk to future insurance premiums

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