Insurance Technology Featured Article

High Satisfaction Levels - a Fillip for Claims Insurers

July 16, 2014

Auto Insurance companies in Canada that process claims can take heart in the fact that customers are significantly more satisfied with their work in 2014 than in the previous year. The J.D. Power’s 2014 Canadian Auto Claims satisfaction study report reveals that insurers have made greater efforts to process claims faster, and this has had a positive impact on satisfaction.

The study, based on responses from more than 2,700 auto insurance customers in Canada who settled an auto insurance claim within the past 18 months, notes that insurers have raised their standards of service, and the insurance industry as a whole is communicating more effectively with claimants throughout the process

 “Often customers perceive the quality of the service they receive from the fulfillment partners also reflects on the insurer, and as such, blame the insurer if service fails to meet their expectations.”

Apart from putting claimants at ease after they report the claim, faster claim settlement and vehicle return times have contributed to higher satisfaction. Insurers have been proactively reaching out to claimants to keep them involved in the process, with status updates and claimants are being informed of settlement terms faster. This is not easy, considering the fact that a large part of the process rests in the hands of third parties. “This presents a challenge for insurers regarding satisfaction,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power.

And that’s not all, insurers have been patiently answering all claimant questions, providing callbacks when expected, and making final payments faster with improved post-claim follow-ups, all of which have positively impacted the overall experience among claimants with repairable-tow claims.

Translating the overall customer satisfaction with the auto claim experience into figures, the J.D. Power study notes that customer experience averages 798 (on a 1,000-point scale), an 11-point increase from 2013; fair enough considering that quality customer service depends on ‘good interactions’ and ‘good service’.

Good customer experience invariably generates high levels of advocacy and retention; the study notes that 75 per cent of highly satisfied claimants favored renewing their policy while 69 percent favored recommending their current insurer. Only a small minority appeared to be dissatisfied.

Desjardins General Insurance is reported to rank highest in overall claimant satisfaction, with an index score of 835 and a J.D. Power Circle Rating of 5, for performing particularly well in the first notice of loss and settlement factors. 

Edited by Adam Brandt

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