As much effort as carriers have put into digital transformation over the last decade, new research shows that there’s still considerable work to do. According to the J.D. Power 2024 U.S. Property Claims Satisfaction Study, today’s insurance consumers are dissatisfied with how long it takes carriers to process and resolve property and casualty (P&C) claims. And the longer a claim drags on, the deeper the dissatisfaction. Claims resolution times were longer in 2023 compared to 2022, mainly due to the myriad of catastrophic weather events from coast to coast. The study notes a significant drop-off in customer satisfaction levels if the claim takes over three weeks to resolve.
Even carriers that offer digital interfaces for clients are seeing lower satisfaction rates. From the J.D. Power study:
“Customers who use digital tools for reporting their claim or submitting photos used in the estimation process experience faster claim cycle times but don’t always have higher levels of overall satisfaction. Claims taking longer than expected are partially to blame as satisfaction drops at a greater pace among digital users than non-digital users. For example, overall satisfaction among customers reporting their claim digitally is 903 when the claim is settled in less than three weeks. That score falls to just 727 after 31 days.”
What is driving insurance customers' dissatisfaction regarding digital channels? Carriers can face a few common challenges when building their digital channel engagement strategies. For example, some insurance carriers only offer a limited number of customer service channels. They may focus solely on traditional channels like phone and email, neglecting newer channels like live chat, social media, SMS, or messaging apps. This limits customer choice and may not align with the preferences of younger generations who prefer digital or self-service communication channels.
Addressing these gaps in the customer experience requires a comprehensive omnichannel strategy that prioritizes the seamless integration of all the channels, messaging consistency, agent responsiveness, personalization, and a focus on customer preferences across all channels.
Omnichannel Engagement Creates Happier Customers
A 2023 study commissioned by my company, in collaboration with independent data scientists, analyzed behavioral data from 250,000 P&C insureds. The study revealed that a consistent, diversified omnichannel experience creates higher levels of engagement and customer satisfaction. Policyholders who utilize multiple channels are 21% less likely to cancel their policies, and customers who repeatedly use them have a 25% higher retention rate.
An omnichannel strategy can significantly enhance insurance customer satisfaction in several ways:
- Meeting Your Customers Wherever They Are: Carriers need to make it effortless for insureds to interact with them. Customers who can interact with the insurance company through various channels of their choice are more loyal. This requires carriers to enable a seamless transition between channels to ensure customers can access services without disruptions, leading to higher satisfaction. Depending on the situation, your customers may want to leverage digital channels for quick questions, or they may need to speak with a customer service professional for more complex needs.
- Getting More Personal: By leveraging data collected from multiple touchpoints, insurers can personalize customer interactions. That can include offering relevant new products, providing tailored recommendations, and addressing specific needs, ultimately making customers feel valued and understood.
- Providing Convenient Self-Service: An omnichannel approach must include a self-service customer portal. The right portal enables customers to complete tasks and access information quickly and easily without the need to speak with an agent. Portals are also highly effective at reducing carriers' costs.
- Maintaining Messaging Consistency: Consistency across channels is crucial for maintaining trust and satisfaction. With an omnichannel strategy, insurers can ensure that the information provided and the level of service offered remain consistent regardless of the channel used. This consistency builds confidence in the company and enhances the overall customer experience.
- Achieving Operational Efficiency: During the claims process, customers want to feel that they’re a priority. Omnichannel strategies streamline processes and workflows, allowing insurers to resolve customer issues faster and more effectively. For instance, customer inquiries can automatically be routed to the appropriate department or agent, reducing wait times and improving resolution times.
- More Reliable, Real-Time Communication: Customers unhappy with claims resolution times may feel they’re not getting enough communication and updates from their carrier. Effective communication is critical to keeping insureds satisfied. That can mean different things to different customers. For example, some customers will appreciate a text message updating them on the status of a claim, while others prefer to receive an email with more detailed instructions on next steps. An omnichannel strategy enables carriers to communicate with customers more frequently, in real-time, providing updates, notifications, and reminders through their preferred channels. This proactive approach to communication keeps customers informed and engaged throughout their journey.
Carriers who take the time to build an integrated omnichannel engagement strategy can improve customer satisfaction by providing a seamless, personalized, and convenient experience. The main goal is to build loyalty with customers who appreciate the ease of use of each channel. That requires consistency across the full mix of digital and offline channels. Regardless of the engagement channel, carriers must move through the claims process promptly and efficiently, facilitating effective communication at each journey step. Doing so will demonstrate to your customer that their needs come first, even if a claim is complex and takes longer than expected to resolve.
Sponsored by: ITL Partner: insured.io
