Webinar recap: Understanding the True Cost of Claims

Claims handling and cost structure have well and truly changed in the past 30 years, but some carriers are still seeing leakage from processes that no longer fit modern customer demands and expectations.

It’s critical carriers understand the true cost of claims, so they retain customers, lower expenses, and make processes fit for purpose.

We now operate in a highly competitive market with only a few, very narrow, differentiators between insurers: claims handling, reputation, and process.

We know the claim department and its services are the heartbeat of any insurance company, so we’ll start there. When assessing your claims team, it’s important to consider their understanding and expectations around customer service and claims handling. Do they understand the relationship between a poor claims experience and a customer not renewing? Do they believe in their ability to make a difference for customers? Have you provided conflict resolution training to help them manage potentially emotional, stressed, and sensitive claimants?

Carriers must invest in their people to ensure they can provide the best possible customer service to each claimant and mitigate the very real financial cost of a poor handling experience.

This experience dovetails directly into the overall reputation of an insurer. It’s important to make a distinction between brand and reputation here – an insurer can somewhat control their brand and how they’re presented to customers, but reputation is built entirely off how customers and the general public perceive them. Reputation is much harder, and costlier, to control as it involves many more factors than simply the caliber of your marketing and communications function.

Reputation is one of the critical cost factors we see many insurers failing to incorporate into their structure or manage effectively. The claims business is a people business, but as we head further into a digital era, insurers need to consider how they’ll front the costs of investing in both their people and technology to protect their reputation.

Whether it’s media monitoring, social listening, or good old-fashioned call reviews, technology can be used in many ways to understand a carrier’s true reputation and how much this is costing it in new or non-renewing customers.

Investigations of both your claims handling and reputation can help gather some key insights into whether your processes are still fit for purpose. We see claims costs blow out for carriers who haven’t evolved their claims management process for quite some time. Your people will be the first to tell you something isn’t working, followed quickly by customers who are frustrated, inconvenienced, or underwhelmed by their experience with you.

COVID-19 has forced us all to be genuinely flexible and agile, and it’s the right time for insurers to evaluate whether their existing processes actually help or hinder performance.

While the initial outlay of investigating the true cost of claims for your business might seem costly, it is far less costly than turning a blind eye to an evolving market and internal issues that are set to damage the bottom-line during renewal season.

Reach out to us today to find out how you can improve your bottom line and revitalize your business, or listen to our full webinar on this topic here.

 

More Posts

Insights

Luminos Awarded Most Comprehensive Product Offering

In today’s challenging economic landscape, carriers are prioritizing operational and commercial efficiencies. This has prompted the insurance sector to focus on solutions for legacy claims and underperforming lines of business. Here, Jon Stambaugh discusses the opportunities for carriers to address legacy liabilities and improve operational outcomes.

Read more
Insights

CLM 2024: Unleashing GB’s Expertise to Support Our Partners

Setting yourself apart is crucial for success, and this rings especially true for MGAs and PAs navigating a crowded marketplace. Here, Amy O’Brien, VP — Carrier Practice Sales, shares strategies and expert advice on achieving a high-performance claims operation. Join us as we delve into practical insights that can empower MGAs and PAs to elevate their market presence.

Read more
Insights

GB Experts Reveal Their Top Insights from RIMS

The New Year is here, and with it comes new opportunities and challenges for the carrier marketplace. Joe Berrios and Jon Stambaugh share the findings of our 2023 survey and discuss the key themes and top priorities for our partners across the industry this year.

Read more
Insights

Strategies for MGAs and PAs to Thrive in a Crowded Carrier Marketplace

Setting yourself apart is crucial for success, and this rings especially true for MGAs and PAs navigating a crowded marketplace. Here, Amy O’Brien, VP — Carrier Practice Sales, shares strategies and expert advice on achieving a high-performance claims operation. Join us as we delve into practical insights that can empower MGAs and PAs to elevate their market presence.

Read more

Keep your finger on the pulse of the latest industry news and insights.

Sign up to our monthly newsletter today.

Search

Hi there!

Want to drop us a line?  You can get in touch by filling out the form below and we’ll get back to you as soon as possible!