Understanding: Why is claim satisfaction so high?

Insurance comes at a critical time in a customer’s life, often making it difficult. At least, that’s what you might think. That’s why I was surprised by our latest research report, Why AI in Insurance Claims and Underwriting, showed satisfactory rates of expression in individual lines in all settings. In this article, I’ll explore exactly what makes people happy – and what you can learn from it.

Speed ​​of return drives insurance satisfaction

Overall, our survey found that 70% of policyholders said they were satisfied or very satisfied with how their insurance company or agent handled their needs.

For claims, this is very high. And our research is not the only one that shows this. A The 2021 JD Power survey focused on auto insurance showed high customer satisfaction for the targets, hitting 880 on a 1,000-point scale. Similar JD Power’s 2021 survey of property claims showed a slight decrease in satisfaction (from 883 to 871), but this interrupted 5 years of increasing satisfaction and may be due to factors that are not strictly related to insurance (such as the disruption of transportation and the lack of products related to the epidemic. ). So what makes people happy?

Omnichannel communication and transparency are twofold. Most insurers allow customers to open a claim on a website or app. The technology offers the opportunity to use images for analysis instead of preparing a person to come to the site. And some insurance companies offer a dashboard to track their entire life.

These are all important technologies that have helped to make the statement seamless. However, there is one factor that, according to our research, drives interest rates more than anything else: speed of settlement. It takes a long time to resolve the decision, so the law enforcement officer is not satisfied.

This insight is particularly important for insurers, as dissatisfaction is said to be the biggest factor in driving policyholders to switch to another company, with 74% of dissatisfied customers either saying they have switched providers (26%) or are considering switching (48%).

Insurers need to focus on AI to build on higher rates

Knowing that speed of settlement is the main driver, how do insurers maintain satisfaction and, more importantly, build on it?

For years, insurers have focused on omnichannel. We are at a point where continued investment in omnichannel is reducing profitability. Of course, this does not mean that omnichannel should be ignored. New ways that target younger generations, such as social media (WhatsApp, etc.), will remain an important way for insurers to grow their customers. And improving or reforming everything that omnichannel insurance providers currently have should be a priority. What I’m saying is that omnichannel is low-hanging fruit – most of which we’ve already picked.

Instead, insurers should focus on AI to transform the underwriting process into a faster, easier and more accurate one. Yes, this is easier said than done. Strategic planning requires strong knowledge and the ability to analyze everything connected in one environment.

A mismatch between intention and action

Employees already know the importance of using AI for business purposes. The graph below shows that, for each value chain, at least 75% of executives said AI and machine learning would bring “significant” or “great” benefits.

However, there is a disconnect between this goal and action. The same graph shows this gap, where even the highest ranking (change claims) still has only 44% of executives saying that they are high on their work on AI, automation and machine learning. In this context, our definition of “advanced” comes from “the use of basic parameters.”

Insurance managers should focus on the most important things

Therefore, about 80% of managers recognize the importance of AI for the purposes, and about 40% consider themselves to be leaders in different areas. It is not surprising that investment costs will increase over the next three years, with 65% of those we asked planning to invest more than $10 million.

Insurers should not be discouraged, however, because the speed of product stabilization is related to other important factors, such as reducing the cost of managers and leakage of plugs – and the answers are the same. That’s why managers should avoid trying to solve each problem in isolation and instead ask how AI, machine learning and other automated systems can transform the business in a way that can affect multiple priorities at once. For example, the increasing use of automated cash-out systems will reduce administrative costs and prevent spills, while increasing customer satisfaction and retention.

Insurance leaders also need to be bold enough to tackle these big challenges and avoid investing too much time and energy in simple things (like omnichannel).

Insurers know what kind of value AI can provide, but are lagging behind in implementation. Fortunately, the recent rise of the cloud will help. The cloud is a necessary infrastructure to use the real-time data and modeling that will power this type of automation.

Overall, there is still a lot of work to do to get the technology platforms to the point where they can quickly drive and effectively implement AI across the business. But it’s clear that AI and automation are where the money needs to go for insurers to reap the benefits: satisfied customers, empowered employees and a stronger business. Read our a comprehensive report on AI-led Transformation in Insurance for more information.