3.5 Things to Know on Claims (Part 3.5)

In the first three articles we talked about the claims process being a customer experience issue. (You can find them here.) We discussed how this process could be less expensive. We also gave some thoughts about how this process could actually generate revenue for the company. We asked you to image yourself being a financial adviser/life agent. We also asked you to imagine that you were a beneficiary who is on the receiving end of a life insurance policy. Let’s face it, life insurance is a grim subject. It has been said that life insurance is never bought, it is sold. Meaning most people are not driving down the road and think to themselves, I should buy life insurance today. But the insurance space is changing! You can now buy policies online without ever meeting with (or speaking to) a representative. Simple life products such as term policies are now purchased this way every day. Term is not a complex product. Most people feel they don’t need advice on such a simple product, so they go online and purchase it. This is why it is so important to realize that, if your process is stuck in that past, hard to complete, done by snail mail, etc., what are your chances of selling any of your products in the future? When I used to give presentations to life agents, I would ask: “What is the easiest life insurance policy sale you will ever make?” I would receive many answers, like: term insurance, monthly payment types, policies from reputable companies. The list would go on and on. See also: 3.5 Things to Know About Claims Systems   Then I would suggest my answer: “The easiest life insurance policy I ever sold was to a person I had just handed a beneficiary check to!” Think about it, I didn’t have to explain the features and benefits of life insurance. The person just experienced the benefits. I didn’t have to “sell” the person on the need. All I had to do was be genuinely interested in helping. Be there to express care and empathy during a time of need and offer my professional opinion. Here’s how your company can be innovative:

1. Instead of recreating the innovative wheel, seek out and connect with insurtechs. You might be surprised at what you find and how easy it is to work with these startups.
2. Meet your customers when and where they want. Forcing them down a process that is better for you doesn’t help them!
3. Increase efficiencies, decrease mistakes and make it easy to do business with you.
4. Offer a great customer experience for the claimant. This will increase your chances of making this person a future client.
5. Make your process easy - No more feeling like you need an attorney to complete the paperwork and your process.
6. Have a “beneficiary first” mindset.

See also: How to Collaborate With Insurtechs   Here’s how your company can generate revenue from your claims process:

1. Have a beneficiary-first mindset. How would you want to go through the process?
2. Increasing efficiencies in your process reduces expenses. These reductions go to the bottom line.
3. Use your agency/adviser force! They want to help your clients. You should want to make it easier for these agents/advisers to help your clients. When was the last time you filled out the account opening forms or your product offering forms? Try it; it would be a great exercise!
4. Think about ALL of the users in your process. Internal employees, claimants, agents, advisers and potential new clients.

The bottom line — if your processes are stuck in the past, you will decrease your chances of gaining clients. Marketing dollars will not help you sell a product to a person who went through your outdated process and was displeased and unimpressed.