Retain Customers with Faster, Friendlier Claims: 4 Strategies for Insurers

Key Takeaways:

• In the insurance industry, customer satisfaction has a direct impact on your bottom line.
• Efficient claims processing and transparent communications are key to customer satisfaction.
• To streamline the claims process and enhance the customer experience, you must adopt automation, self-service, and omnichannel communication solutions.

In 2024, property claims customer satisfaction (CSAT) has reached its lowest point in seven years, according to a recent J.D. Power report. For insurers, this decline is a serious concern, especially in an industry where customer loyalty and retention are vital to profitability.

What’s driving this downward trend? Longer claim resolution times and inconsistent customer communications. If you’re an insurer, it’s crucial to be aware of these challenges and take proactive measures to:

• address customer concerns
• streamline processes
• embrace innovative technology solutions to turn the tide

Let’s explore how it’s done – and the resources you need to succeed.

The Importance of Customer Satisfaction in Insurance

Customer satisfaction has always been a key indicator of success for insurers. In the property insurance sector, customer satisfaction is especially critical because it directly impacts retention rates and profitability.

Most customers don’t think about insurance until they file a claim. And when they do, the claims experience often becomes the most significant interaction they’ll have with you as their insurer. A negative experience can result in not only the loss of that customer, but also a ripple effect that damage your reputation.

Research by Accenture shows that dissatisfaction with the claims process is one of the leading reasons policyholders change insurance carriers. In fact, 30% of dissatisfied claimants either switched carriers or were considering doing so. That’s a big risk for your business when billions in premiums are at stake annually.

Implications of Low Customer Satisfaction for Insurers

Low customer satisfaction, especially in claims processing, has serious consequences for insurers. Customer retention is critical, and losing customers due to dissatisfaction can erode your profitability fast.

It costs far more to acquire a new customer than to retain an existing one. So, improving your customer satisfaction should be a business priority, rather than just an operational goal.

According to the J.D. Power 2024 Property Claims Satisfaction Study, customers who don’t receive timely updates or experience delays are three times more likely to view the claims process as slow. The takeaway? Keeping customers informed – even when delays happen – builds trust; customers can be much more forgiving. Alternatively, if you fail to communicate effectively during the claims process, you’re much more likely to lose policyholders.

How to Address Pain Points in Property Claims

Two of the major pain points in property claims processing today are extended resolution times and inconsistent communication. Your customers expect a seamless experience, and when there are delays, they want to be kept in the loop with clear, proactive communication.

One key driver of dissatisfaction is the time it takes to resolve claims. On average, repair cycles for property damage claims now exceed three weeks – adding stress for customers waiting to return to normal life. Coupled with the frustration of dealing with multiple representatives and having to repeat information over and over, it’s no wonder satisfaction levels have plummeted.

Customer retention is closely tied to the speed and transparency of claims resolution, so insurers that can improve efficiency in claims processing will have a competitive edge.

Technology and Streamlining Claims

With all of this in mind, the question becomes how to streamline the property claims process and enhance the overall customer experience.

And the answer?  Your business needs to take a digital-first approach that incorporates automation, self-service, and omnichannel communication solutions.

Here are four strategies insurers can adopt to meet modern customer expectations:

1. Automated claims processing: Reduce processing times by automating parts of the claims process – like data collection and straight-through processing of simple claims. Artificial intelligence (AI) can also be used to automate decision-making in more complex claims, allowing your human adjusters to focus on special cases that require personal attention.
2. Self-service portals and omnichannel communication: Customers want the ability to file claims, check statuses, and communicate with you on their preferred channels. An integrated customer communications management (CCM) platform provides omnichannel consistency, allowing customers to switch between channels seamlessly without having to repeat information.
3. Proactive communications: Timely and clear communication is essential to managing customer expectations. From the moment a claim is filed, you should provide regular updates on the progress of the claim, even if there are delays.

J.D. Power’s research shows that insurers that communicate well are more likely to retain customers. Proactive communication builds trust and keeps customers engaged throughout the claims process.

1. Empathy and personalization: While automation and digital tools can speed up processes, make sure you don’t lose the human element of empathy.

Customers are often stressed and want to feel that their insurer cares about their situation. That’s why insurers that the time to acknowledge the customer’s experience and offer personalized support are likely to see higher satisfaction rates.

A unified CCM platform allows you to get the job done by personalizing each communication so that it’s relevant to the customer’s specific claim and needs​.

Creating a Better Customer Experience with Digital Solutions

Customer expectations are higher than ever – and the decline in property claims customer satisfaction is a real wake-up call for insurers.

The good news is that you can turn that trend around and create transformation for your business by adopting digital self-service tools, automating processes, and improving communication.

Precisely’s EngageOne™ solutions provides seamless and personalized communication throughout the claims journey by combining:

• event-driven communications
• real-time API integration
• omnichannel capabilities

From automated acknowledgment emails to interactive videos and chatbot support, EngageOne™ helps you ensure that your customers are kept informed at every stage of the process, so you can power faster claims resolution and boost overall satisfaction​.

That means better overall retention, and more security for your bottom line. Even in times like these, when customer loyalty is hard-won and easily lost, you can take these steps today to help ensure success and stability for the future.

To learn more, read our white paper: Optimizing the Claims Experience to Boost Customer Satisfaction and Increase Retention