Claims correspondence is at the heart of any property and casualty insurance company. There are many things in the insurance industry that will keep your CEO awake at night – changing regulations, technology changes, etc. Claims correspondence upgrade challenges, though, can be the stuff of nightmares.
As long as there has been property and casualty insurance, there have been claims. Insurers have had to constantly adjust in order to meet claims correspondence challenges. Customers now expect your company to be there anytime, anywhere. Creating a positive, memorable claims customer experience has become a significant focal point for many property and casualty insurance companies. There’s a good reason for that.
As an example, auto insurance carriers in the U.S. that have provided customers with consistently best-in-class experiences have generated 2- to 4-times more growth, 30 percent higher profitability, and an 80 percent increase in customer loyalty1. Those are numbers you can’t ignore. With this in mind, let’s look at some of the claims correspondence challenges facing the insurance industry today.
Shift in Demographics
As we move at the speed of light toward the Digital Age – some say we’re already there – one of the major claims correspondence challenges will be the shift in demographics. In particular, Millennials will overtake Baby Boomers as the largest generation2.
While that doesn’t mean your company needs to immediately stop what it’s doing and change everything, it does mean you have to find an equilibrium. Between the two generations, there are close to 150 million people, and all will have some type of insurance. How does your company handle claims correspondence for each group?
Millennials are more likely to want their claims correspondence digitally. Emails, texts (or SMS), webchats, even correspondence via social media – these all represent ways Millennials would prefer to hear from you, and how they’d like to converse with you.
Most Boomers, on the other hand, still prefer to have hard copies. For their claims correspondence, they prefer paperwork, while also being able to communicate over the phone or in person. The one thing every generation has in common is they expect your property and casualty insurance company to be there when they need you.
24/7 Customer Demand
On the list of claims correspondence challenges, this one seems like a no-brainer, but it’s one that’s easy to forget.
It doesn’t matter from which generation your customers come, they expect you will be there whenever they need you. It could be 3 a.m. on Christmas day, but it doesn’t matter. Claims correspondence and claims management need to happen around the clock, 365 days a year. It doesn’t have to be daunting, though.
Mobile apps are a great way for your customers to have access to the information they need at the press of a fingertip. It can also help route the customer to the best outlet for help. This could be chatting with a live person through a chat window or phone call, or it might come down to an automated solution.
Regardless, if you’re not there, the chances the poor customer experience you provided will lead them to a different insurance company.
First Notification of Loss
The entire claims management process starts with the First Notification of Loss, or FNOL. This is the first domino that sets off the claims chain reaction. Claims correspondence challenges come about when you start looking at how everything is set up.
Before a claims correspondence is generated, several things have to happen first. After the FNOL, a claims staff, or adjuster, is assigned. Then coverage confirmation, followed by several other steps. The point is there are plenty of things that could go wrong between the FNOL and the claims correspondence.
The right claims correspondence software should be able to help in this situation, making sure all touchpoints are hit in the right order. It would also help solve many of your claims correspondence challenges.