You're probably already aware that customer satisfaction typically registers its lowest marks after a claim. Even if the process goes well, and the customer says they're generally happy with how it was handled, they're more likely to switch insurers during the months after filing than at any other time.
Quick example: according to the 2015 Claims Customer Survey by Accenture, out of 8,000 customers across 14 countries, almost one third planned to switch insurers within a year of filing a claim, even though their satisfaction was "quite high."
No wonder claims satisfaction – the kind of satisfaction that doesn't just evaporate a few months later, but actually translates to customer retention – is somewhat elusive. According to this year's J.D. Power Auto Claims Satisfaction Study, that's changing.
J.D. Powers satisfaction survey findings
When J.D. Powers averaged claims satisfaction scores in auto insurance across the generations, auto insurance claims ranked at 860 out of a thousand: three points higher than in 2015. Per demographic, the breakdown went like this:
Pre-boomers – 912 points
Boomers – 878 points
Gen X – 847 points (down 8)
Millennials – 844 (up 17)
In large part, millennials are driving the change. That 17-point jump in their score since last year played an instrumental role in shifting the entire average up by three points in 2016. This isn't just significant numerically, for its effect on this year's satisfaction. It also speaks to how claims satisfaction in auto insurance may develop from here.
Millennials are a growing group. They became the "largest generation" this year, said Pew Research; Boomers passed that mantle directly to millennials, right over the heads of Gen X, which never held it and now never will.
Millennials are driving the future. So what's driving the satisfaction leap? According to J.D. Power, the list is as follows.
Multiple communication options: email, web, phone. Insurers must provide a variety of channels to make it easy for customers to check on their status throughout the claims process.
Website experience: remember the eight-point drop in Gen X satisfaction this year? Web experience was the problem. Insurers should work on website user experience.
Human gatekeeper: customers who kicked off the claims process by contacting their agent were 30+ points more satisfied than those who began online. Insurers should consider designing their funnel to nudge (or perhaps even require) customers to enter the process via human interaction.
Let's be clear; some customers will jump ship in the months following a claim. That's inevitable. Yet it may no longer be true that even when satisfaction is "quite high," you can expect a third of your customers to bail after filing.
J.D. Power said that when satisfaction is high enough to register as "delight" (900 points or more), 84 percent of customers surveyed said they would definitely renew their policy. Among those who were, ahem, displeased (at 549 points or fewer) only 12 percent were willing to say the same.
Are you prepared to take the steps to make your claims process a source of delight? With Silvervine Software, you’ll have the mobile side of the equation nailed. Download our Five Mobile Gamechangers report to learn more.
The FedNat Insured Web is a great tool for our insureds!
They like having a centralized location to view policy info, make payments, upload policy documents, and elect to become paperless to receive a discount.
The insureds also can file a First Notice of Loss for a claim and access exiting claim info. Silvervine recently enhanced the site which allows insureds to upload policy documents directly to their policy. The uploaded docs go directly into our workflows and save a lot of manual effort on our part.
From my visits with agents, the agents appreciate the app for the amount of time saved on having to download and attach photos directly to the policy.
The app can also reduce the amount of staff required for a busy office to fulfill underwriting requests for photos.
When training agents they are amazed at how quickly the photos attach directly to the policy. After taking photos using the app and before they make it back to their desk, the photo is already attached to the policy. They also like the ability to attach additional photos for pre-existing damage.
Customer Service is seeing an improvement with retention as the text message definitely triggers phone calls from insureds to make payments.
The insureds love the fact that we notify them on their phones because they state that sometimes they don’t receive their mail for various reasons.
The insureds are paying more attention to the texts then to their actual mail. We try to set all of our customers up on that option if we notice that they are not currently enrolled, as it builds great customer relations as well as retention.
As a company we have adopted the use of Policy Scan for all our policies, and our agents have adopted the use of the app as well.
Not only is it easy to use, there is also no more worrying about losing photos, having to store photos or photos being attached to the wrong policy.
With Policy Scan we have increased efficiency in our workflow and reduced our exposure on the risk.
Silvervine’s core administration solutions easily handles multiple carriers within multiple states, including accounting, payment processing, immediate policy issuance and endorsements.
What started out writing one product, one line in one state has now grown into mulitple products, multiple lines and writing in multiple states. We have over $95 million in annualized premium in-force and we expect to grow by 20% during the next year all serviced by Silvervine.
Silvervine was our insurance software system of choice when we started the company in 2006. Silvervine enabled us to begin business within a few months of licensing the company. Today, we are one of the top 20 homeowner’s writers in Texas and SIlvervine’s solutions have been an integral part of our success.