Thursday, January 26

Speed Equals Satisfaction in a Historically Slow Insurance Industry


This post is part of a series sponsored by AgentSync.

If there is one thing your insurance company can do to improve both employee and customer satisfaction, it is to find a way to reduce delays and delays in your internal and customer-facing operations. Most of the time, the right technology is an important part of the answer.

The importance of moving quickly in today’s world

Speed ​​is no longer a luxury or distinction. It’s a basic expectation that most consumers prioritize and it is So willing to pay extra for. This means that if your business does not provide a fast customer experience, You can be sure that your competitionThis means losing business.

Speed ​​pays satisfaction in insurance

People don’t like to wait. until Put the customer on hold for a few minutes It can cause lower customer satisfaction scores (CSATs). It shouldn’t surprise you to learn that when it comes to customer experience with insurance companies, resolving claims quickly is a huge component of customer satisfaction and retention.

A recent study conducted by Hi Marley, the SMS service provider in the insurance industry, found that Top-performing and highest-rated Claims reporters also had the lowest first contact time (TTFC). These high-performance insurance employees connected with their clients in less than three minutes, making 80 percent of their first contacts within the first three and a half hours. On the other hand, the lowest performing claim adjusters took more than two days to make initial contact with their clients.

It is not surprising to learn that claimants who received responses within a few hours were happier with the service they received than their counterparts on multiple response days. But seeing the huge difference this speed can make, not only in customer satisfaction but also in profitability, is well worth posting. The Hi Marley study found that the best claim adjusters were able to close claims 10 percent faster than the two lowest performing rates, on average, which translated to claim completion three days faster.

When you consider cutting three days, or 10 percent, from any of your business operations, think about the ripple effect it can have on everything from employee satisfaction to profitability. Whether it’s the same number of people doing more in less time, or the ability to grow your business without increasing the number of employees, removing delays in your operations tends to make everyone happier with the work they do and the service they receive.

Insurance has a speed problem

a 2018 PricewaterhouseCoopers Study It found that the vast majority of global survey respondents (nearly 80 percent) rated “speed, convenience, knowledgeable help, and friendly service” as key factors for a great customer experience. The same study found an 18-point delta between respondents’ rating of the importance of customer experience in the insurance industry and their actual level of satisfaction with the insurance industry experience.

Given what we know about slow nature From the insurance industry as a whole, as well as Hi Marley’s data on claims speed and satisfaction, we can extrapolate that at least a portion of the less-than-ideal customer experience insurance consumer report is based on speed or lack thereof.

Further evidence of the relationship between speed and satisfaction is emerging in the insurance industry Record high levels of customer satisfaction with auto claims In 2020, COVID will reduce the number of claims and speed up processing times. a JD Power Study It found that the decrease in the number of auto claims reported during the pandemic helped insurers reduce the average (repairable) auto claim cycle from 12.6 days to 10.3 days. This was associated with a four-point increase in auto insurance customers who planned to renew their existing policy compared to the previous year.

Overall, it seems clear that the insurance industry’s velocity problem is directly related to the customer experience gap. But does it affect other areas outside of customer retention? Short answer: You bet it!

Smooth and fast experience is important for insurance producers and compliance staff as well

By working for an insurance company, agency, or MGA/MGU, you can easily see the impact that fast communication and seamless processes can have on your clients’ satisfaction. The same also applies to licensed agents and insurance producers, along with other operating and compliance personnel.

A faster experience during setup means that your producers do too Ready to sell faster. An easier (and faster) process for scheduling and renewing licenses is less burdensome for management and compliance teams. Helping your employees do their jobs faster, including but not limited to enabling producers to get ready to sell sooner helps you build a reputation as an insurance company or insurance agency Easy to do business In and for and in the end with. Whether your reputation is among your in-house employees or your channel partners, being known for creating an exceptional experience helps everything from Product Recruitment and Retention to me Reduce operating costs.

Increase speed with modern insurance technology

Insurers found a significant increase in customer satisfaction when a claims reformer used SMS technology to quickly communicate with policyholders. Likewise, technology could hold the key to insurance companies and agencies looking to reap the rewards of accelerating things in other areas of the business.

If your insurance agency, carrier or MGA suffers consequences Slow, manual and boring productwasted money in Unused carrier datesor delay due to Data silos and workflows (among many other issues), see how Adding AgentSync It can improve speed and satisfaction at every stage of the distribution lifecycle.


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