Claim Satisfaction Equals Brand Loyalty
By Mark E. Ruquet
NU Online News Service, April 29, 9:22 a.m. EST?A survey released by a claims consulting group indicates insurers may be underestimating how important communication and length of time it takes to complete the claims process are to consumers.
The study for Accenture's claims solution group based in Murray Hill, N.J., found that 94 percent of all U.S. adults cited quick resolution of an insurance claim as a highly important factor in the claims process, while 74 percent felt the settlement amount was more important.
The findings, first made public during the Risk and Insurance Management Society conference in New Orleans this month, were commissioned by Accenture to further correlate what customers felt about the claim's process with last year's loss-cost study (see NU, May 14, 2001, page 6), said David Hollander, Accenture managing partner in the claims solution group.
The survey asked a random sample of more than 1,000 people about their claims experience. Of the sample asked, 241 said they had submitted a property-casualty claim within the last five years. The totals were then statistically weighted against the total population of the United States to come up with the results.
While no single finding in itself was surprising, said Mr. Hollander, taken together, the results are surprising in that the entire claims experience can influence a client's desire to remain with the insurer.
Among some of the other findings of the survey, 90 percent of those who were satisfied with the speed of their claims were likely to stay with their current carrier and 87 percent said the amount of the settlement would influence whether they would remain.
The survey also found the length of time it takes to settle a claim influences loyalty. The average time to settle a claim was 10 days, with one-third of respondents saying it took 15 days or more to settle. Sixty-five percent of those whose claim took 15 days or longer said they either would not refer the insurer to their friend or would not remain a customer.
When it comes to being informed, 41 percent said they were not happy with how they were kept informed about the status of their claim. Of those who were satisfied, 76 percent said they would refer a friend to the company and 69 percent said they would remain a customer.
The implication of the report, said Mr. Hollander, is that insurers need to expand their use of technology in the area of claims to reduce redundancy, keep in communication with customers, and speed up the process.
Accenture, he said, has introduced software products for that purpose, which are in use or being developed for eight carriers, among them Chubb and One Beacon.
Information on the survey will be online at www.accenture.com/claims or can be obtained by e-mail through marykate.dolan@accenture.com.
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