ClaimAble Blog

Up until recently, the traditional IT solution for insurance companies was mainframe. Big was best! Some systems were bespoke to the particular requirements of those companies large enough to develop their own; others were available “off the shelf”.

Over time, with legislative and business changes, these systems were adapted, either by the system creators, or by the company’s in-house IT team, usually at significant cost. Often, these changes would in turn create difficulties elsewhere in the system and doubtless there are insurance staff today still using  many “workarounds” to overcome system oddities and eccentricities. In fact many of these legacy systems are now too complex for their functionality to be effectively mapped.

The industry has a reputation for being a bit of a monolith with a reluctance to change. But change is good – especially now. Web based systems are available at a fraction of the cost of their mainframe ancestors. Speed and capacity are far superior; and the storage and retrieval of documents is so advanced that the need for cavernous file storage facilities is lessened. And by carefully choosing the right web based option insurers and brokers will find it to be so intuitive as to eliminate the need for extensive staff system training programmes.

So the battle to keep premiums low but efficiency and profitability high, can be won. The solution is already there. Seek out a web based system and harness the immense power of the internet to transform your business!

We’re hiring again! We are looking for a Cappuccino developer and a Front End UI/UX Developer and Designer to help us on the upcoming version of ClaimAble.

We are working on some fantastic new features that will thrill our users. We need great people to join the team and help us grow ClaimAble and keep us ahead of the competition.

Check out our jobs page for more info or email jobs@claim-able.com, if you think you’d like to work with us!

The way in which businesses use and interact with technology is changing. The limitless potential of the internet is continuing to grow, and soon the idea of having dedicated servers running cumbersome software will seem as quaint as a steam train.

At least, that is the idea. If businesses are willing to embrace cloud-based software solutions, they could reap huge financial and operational rewards. Software as a Service can help them do this.

What is Software as a Service?

Software as a Service (SaaS) is a new way of accessing and using software. Traditionally, users would install instances of a piece of software on their computer, with an individual installation required for each user. SaaS reverses this labour- and resource-intensive arrangement – and instead sees a single instance of the software installed in the ‘cloud’, with users accessing it through their web browser.

So, rather than having a piece of software like your word processor or CRM solution installed on your workstation, it is instead stored on a central server to which you have access. You navigate to that piece of software using your browser, in exactly the same way that you navigate to any other web page.

It is likely that you have already used software in this way, perhaps without realising it. Google’s popular Docs system is a good example of SaaS. This system allows on-demand access to web-based software suite that includes a word processor and spreadsheet solution, without the need to install anything on the user’s computer.

The business world was initially slow to embrace SaaS. A range of concerns was expressed, particularly regarding the issue of security. But an increasing number of firms are now beginning to understand that SaaS presents them with the opportunity to use the software they need in a way that is cost-effective, resource-light – and, with new encryption technologies, secure.

SaaS and the insurance industry

SaaS has a number of potential applications for the insurance industry. Firms involved in claims handling are likely to find these technologies particularly useful.

Many claims handlers rely on antiquated software solutions to help them organise and manage their claims data. In many cases this software was not designed with their business in mind, and it is often unwieldy or simply unfit for purpose.

Today, well-designed, bespoke claims management software is available as a SaaS solution. This has a range of important advantages. This software can help you process claims more effectively, and at a lower cost. It can also hep to ease the burden on your IT department, and remove the need for costly dedicated servers.

5 ways SaaS can help your business:

1. It is cost-effective

   SaaS solutions are potentially many magnitudes cheaper than their proprietary counterparts. Costs can be saved in two main areas: setup and deployment, and maintenance.

   SaaS solutions are cheap to set up and deploy because someone else does it for you. You don’t need to dedicate valuable resources to understanding and rolling out what could potentially be a complex piece of software. Instead, the provider does the work on your behalf. By the same token, maintenance is conducted by the provider, leaving your IT staff free to concentrate on other tasks.

2. It is easy to maintain

   Most SaaS solutions include constant upgrades in their cost. This iterative approach is characteristic of many SaaS products; new features and patches are rolled out automatically, with no work required on your part.

3. It is scalable

   This is one of the major advantages of SaaS solutions. No longer will you be constricted by factors like server space or speed. Instead, SaaS products will grow with your business. Part of the beauty of the cloud is that if you need more storage, it can simply be ‘turned on’. Your solution expands to fit your operations, rather than your operations shrinking to fit your resources.

4. It is seamless

   SaaS claims management solutions can be easily integrated into your existing workflow. A well-designed solution will enable you to capture and export data in precisely the format you require, with the absolute minimum effort. Software can also be branded to provide a seamless experience for agents and, where relevant, customers.

5. It is everywhere

   Because SaaS solutions are web-based, they can be accessed from anywhere. All you need is an internet connection, and a reasonably modern web browser. Indeed, some claims management products now include smartphone apps, meaning that you can access the information you need even when you are away from the computer.

Software as a Service looks set to continue to grow in popularity – and with good reason. It allows businesses to run the tools they need cost-effectively, and in a sustainable, scalable way. Perhaps most importantly, though, it provides firms with the opportunity to make software work for them, rather than being forced to waste resources battling with burdensome, unwieldy technology.

Claims processing is a complex world. Different firms handle claims in different ways, and individual claims may require their own processes. A flexible approach is therefore necessary.

But despite its intricacies, the claims handling process is ripe for optimisation. It is at the heart of many businesses, and it is amongst the most important points of contact between insurers, claims handlers, and policyholders. A firm understanding of the process, and an intelligent approach to its optimisation, can yield significant financial and organisational benefits.

But first things first – what do we mean when we talk about claims processing, and how does it work?

Claims processing 101

The number of stages required to process an individual claim could vary significantly, and will depend on the nature of your business and of the claim in question.

Most claims handling processes will, however, follow this basic route:

• Submission. The first step is the receipt of a claim. Traditionally, this would involve the policyholder phoning or writing to the insurer or claims handler – but today, claims are increasingly submitted online.
• Assignment. Once a claim has been received, it will be assigned to a relevant handler. This process is often automated, particularly in larger claims handling organisations.
• Evaluation. Once a handler has been assigned, they will begin to evaluate the claim. The evaluation stage could involve numerous other steps and, in complex cases, can take some time. An adjuster might, for example, need to visit any relevant sites, or see damage to relevant items. Often, the evaluation of a claim can require a lot of back-and-forth between the handler and the policyholder. Extra information may be required, including police reports, photographs, and witness statements.
• Decision. Once a claim has been evaluated, the handler will decide whether or not they intend to accept it. This decision will generally be based on a very strict interpretation of the policy wording. In the case of low-value claims, some firms choose to skip the evaluation process and automatically pay out, as the cost of evaluation would be higher than the value of the claim. But this practice generally only applies in a very restricted number range of circumstances.
• Payment. If it has been decided that the claim will be accepted, payment will then be made. The way in which this payment is made will depend on the nature of the claim, and the terms of the policy. It might, for example, involve a cheque being sent directly to the policyholder, for example to reimburse them for work already completed or for a loss. Alternatively, it might involve a payment to a contractor. It might also require the handler to arrange with a supplier for work to be completed. This is particularly common in motor insurance, where many insurers have preferred suppliers who complete work for them.
• Storage. The details of the claim will then be stored. This step has a number of functions. It allows claims handlers and their clients to better understand their businesses, and to improve their models. It also enables realistic financial forecasting. Finally, the handler or insurer may also be required to keep data for compliance reasons.
• Closure. Once the process has been completed, the claim can be considered closed. It is worth noting, though, that denied claims are often reopened, for example if the policyholder brings legal action to contest the decision.

Optimising with technology

It is in everyone’s interests for the lifecycle of a claim (that is, the time between submission and closure) to be as short as possible. Quick, efficient turnaround means better use of resources, lower costs, and happier customers. Optimising this process should therefore be at the top of every claims handling firm’s list of priorities.

Technology has a major role to play in the optimisation of the claims handling process. You simply don’t need, for example, to be storing vital information on paper any more. Instead, well-designed claims management software can help you to organise, retrieve, and manipulate your claims data in an easy, secure way.

Newer technologies like mobile computing and the real-time web also provide significant opportunities for optimisation. It is now perfectly realistic, for example, for adjusters or other agents ‘in the field’ to be provided with real- time claims data, directly to mobile handsets. They can then update this information on the fly, ensuring that everyone has the most accurate data possible at all times.

Claims management software can also help you to fulfil your compliance requirements. By providing you with a sturdy framework within which to store claims data, it helps you to keep and retrieve information that you might have a legal obligation to keep hold of. Additionally, you can use this data to create useful, timely reports that give you new insights into your business.

By embracing some of the new technologies on offer, and considering ways that you can integrate new techniques into your existing working practices, you can process claims more quicker, cheaper, and more effectively.

Key performance indicators (KPIs) are amongst the most useful analysis tools available to business owners. When properly considered and implemented, these metrics can provide a valuable insight into the efficiency of an organisation, and can enable managers to understand their businesses better, identify strengths, and address weaknesses.

Why are KPIs important?

KPIs provide a simple, standardised way to measure the success of certain activities and operations. Every business will have a range of indicators that it is necessary to measure. At the highest level, these might include basic metrics like operating profit and turnover. But more specialised KPIs can help to provide a highly accurate illustration of the way in which your business is working – and help you understand how it can be improved.

KPIs are the indicators that are of particular importance to your business or specific areas of its operation – in this case, the claims handling process. The frequency with which they are measured will depend on the nature of the indicator, and on the reporting resources you have available.

KPIs in claims management

Every business will have a different set of KPIs. Even firms in very similar areas could choose to monitor completely different indicators, depending on their own goals.

In order to identify your KPIs you will need to consider your own objectives. But here are some ideas to get you started:

• Average claim lifecycle. The time that elapses between the submission of a claim and its eventual closure – either because of a settlement or a denial. A shorter claim lifecycle is generally better. If this metric is going up, you may need to take action to reverse the trend.
• Complaints as a percentage of total claims. Obviously, the lower the number of complaints, the better. You should bear in mind, though, that complaints inevitably arise more frequently in cases where claims are rejected. A high number of rejected claims will therefore likely cause a spike in the number of complaints received.
• Claims per handler. This metric is often linked to claims lifecycle. Generally, the higher the number of claims assigned to each individual handler, the longer the claims lifecycle. In order to reduce this metric you should consider ways that you can prioritise claims better. Alternatively (or additionally), you might need to invest in extra resources, including more handlers.
• Cash settlements as a percentage of total settlements. Many firms prefer to offer cash settlements where possible, as it is quicker and less labour-intensive than the assignment and oversight of a third-party supplier. You may therefore wish to measure the percentage of accepted claims that ultimately result in a cash settlement.
• Percentage of claims accepted. Finally, you are likely to want to measure the total percentage of claims that are ultimately accepted. Large or unexpected variations in this metric could well be down to changes in your handling process, rather than differences in the nature of the claims you receive.

Other insurance KPIs

You may also wish to consider the relationship between your claims handling KPIs and indicators from other areas of your business. For example, you might want to understand whether there is a link between claims lifecycle and renewal rates. Simple investigations like this can yield significant financial improvements.

On the other hand, if your business deals solely in claims management, you may want to develop a suite of KPIs that you can share with your clients. Again, the indicators that you choose here will depend on the nature of your business, and on the requirements of the firms with which you do business.

Don’t forget to monitor

It is vital to remember that it is not enough to simply identify your KPIs. Similarly, it is not enough to just measure them once. A ‘snapshot’ of information is, on its own, not particularly useful. Instead, KPIs become relevant only when they are measured over extended periods of time.

By measuring your KPIs on a regular basis, you can begin to identify trends and start to make more accurate predictions about the trajectory of your business. The frequency with which you measure the individual indicators will depend on what it is that you are trying to understand. Many businesses, however, choose to circulate daily reports that give an overview of performance. This might include metrics like the total number of claims currently open.

Key performance indicators are valuable for every business. Firms engaging in claims handling tasks can use KPIs to develop a better understanding of their strengths and weaknesses, and to plan for the future. Additionally, businesses can use some of these metrics to interact more effectively with their clients and customers – and, ultimately, to become more productive, more efficient, and more profitable.

Legal Aid

The insurance industry is already being affected by the UK Government’s austerity measures. Courts are closing; and the Legal Aid budget is facing significant cuts with the goal believed to be a reduction in the number of civil cases by 50,000 per annum. Inevitably many of these will be insurance related.

Insurers face a balancing act – to reduce premiums in order to retain business, whilst not damaging their profitability. The government cuts may present a surprising catalyst towards them achieving this. The industry has lobbied that by increasing the financial risk and burden of legal costs; and reducing the “compensation culture” rewards; then the more frivolous claimants will be discouraged from pursuing their cases through the courts.

Legal Aid is now only available to approximately half of the 80% of the UK population it originally served. Going forward it is likely that more claimants will be means tested. It is understood that cases such as clinical negligence, fatal accident and asbestos claims will cease to be covered by the Legal Aid budget. This, combined with the increased burden of risk and cost on the claimant, will deter many, thereby paving the way for reduced premiums.

“No Win – No Fee”

Otherwise known as contingency funding this concept has also come under the legislative microscope. The main proposed change is that successful plaintiffs’ legal fees should be taken out of the compensation eventually awarded. At present they are added to the losing defendants’ total liability – effectively a punitive measure designed to reduce flippant defences.

The hope is that by implementing this change there will be less incentive for claimants to pursue their cases through the courts. It would be foolish for a claimant to believe that their award would be greater because of this change – awards tend to remain fairly constant. Therefore the claimants’ share would be lessened.

Contingency funding of legal action grew out of Industrial Tribunal and motor vehicle claims sectors. Legal firms positioned themselves as champions of the “man in the street”. However the real value of this work lay with small negotiated settlements where defendants’ insurers would rather pay a nuisance fee, often running into thousands of pounds, than let matters proceed to full blown expensive litigation. The reciprocal point is that contingency funded lawyers are likely to be more reticent about taking on the larger cases that are more likely to end in a court, because of cost, cash flow delays and business risk.

So it is likely that the proposed change will see a substantial reduction in “no win – no fee” litigation, and also that fewer legal firms will be willing to offer their service to such cases.

How does this affect the Insurance Industry?

The reduced availability of Legal Aid and proposed changes to contingency funding will have an impact on the industry simply because there will be less incentive to pursue matters through the courts.

When the initial impact of a loss has subsided, the insured party will have to make a reasoned decision based on the facts, advice, precedents and the reduced likelihood of Legal Aid, as to the viability of them proceeding through the courts.

Insurance companies and brokers can help themselves by tightening up their document management systems in order to shore up their defences against litigation. Web based systems are available that offer instant access to a full audit trail of all documentation relating to a claim. They automatically keep the claimant apprised of each and every development as they occur, thereby adding to the likely lessening of litigation.

Loyal customers are at the heart of any profitable business. A sale to a repeat customer is worth almost twice as much as a sale to a first-time buyer – so minimising customer churn is amongst the most important ways that your business can maximise its profits.

Repeat customers are amongst your most valuable assets – and retaining them should be high on your list of priorities. The effective use of bespoke claims management technology can help you to hold onto your customers by streamlining the claims process, increasing transparency, and encouraging communication.

Standing out in a crowded field

The insurance market has never been so crowded – and many insurers are increasingly choosing to compete not on service, but on price.

The apparently unstoppable growth of price comparison sites has meant that many customers now consider price to be the most important factor affecting their purchasing decisions. The continued poor state of the economy, and the downward pressure on business spending that has resulted, have only exacerbated this problem.

This presents insurers with a conundrum. If you cannot (or choose not to) compete on price, how else can you ensure that you stand out in an increasingly congested field – and hold on to the valuable customers you already have?

Great customer service is the answer.

Many customers will only deal with an insurer on two or three occasions: when making a purchase, when making a claim, and when renewing. The claims process is the best opportunity for an insurer to make a good impression, and build brand loyalty. Indeed, if the customer has bought their policy through a broker, the claims process could in fact be the first contact they have with your firm – and first impressions count. By providing an efficient, slick claims process you can help to maximise customer satisfaction, and reduce churn.

Technology and customer retention

Your customers are likely to have three main concerns when making a claim: the ease with which they can make that claim, the decision they receive, and the speed with which the decision is arrived at. Properly implemented claims management software can help you to address all three of these concerns.

Let’s consider the issue of speed. A well-designed claims management solution can dramatically reduce the lifecycle of each claim you receive. This technology provides you with a simple, effective framework within which to store, organise, and peruse claims data. Many solutions offer a very high level of granularity, allowing you to pinpoint the information you need quickly. Additionally, a clear interface helps you to understand the progress of each claim.

When combined, these factors mean that the time between claim submission and decision can be dramatically shortened. Multiple employees can work on individual claims more effectively, and tasks can be easily designated to the relevant individual. Automatic alerts, issued when claims reach specific stages or goals, will also enable you to prioritise and manage your time more effectively.

The decision itself is also a key part of the claims process. Indeed, many customers are likely to consider that decision to be the most important element of their dealings with your business.

Again, good claims management software helps you to come to better decisions, more quickly. By ensuring that your employees have all the information they need, in an easily digestible format, you can help to guarantee that accurate decisions are arrived at as rapidly as possible.

Communication

Communication is key to good customer service and, by extension, to customer retention. Claims management software helps you to communicate better with your customers, and keep them in the loop.

There is no longer any necessity for a customer to be kept in the dark about the status of their claim. With good claims management software, your customers can track the progress of their own claim, through a simple online dashboard. This technology has a number of important benefits. Primarily, it ensures that customers are confident that their claim is being dealt with, and removes the need for them to chase you for information. Secondly, it eases the burden on your call centre staff.

Perhaps most importantly, though, this transparency helps to reassure your customers that their claim has been dealt with fairly – even if it is eventually denied.

Seamlessness

Importantly, these solutions can be built in a way that suits your organisation. A properly integrated solution will capture data from your existing online claim forms, and store it in an intuitive, manipulatable manner – rather than requiring you to spend time developing new question sets.

Customer-facing elements can also be easily branded, and integrated into your existing online presence. This can help to reassure customers that their data is safe, and that they are not required to deal with third parties in order to get their issue resolved. Developing trust is vital if you are to build long-term relationships with your customers – and seamless integration of technology helps to encourage that trust.

An efficient customer retention strategy is necessary for any business to remain profitable. With a claims process that makes effective use of the latest claims management technologies, you can reduce churn, grow your customer base sustainably and, most importantly, maximise your profits.

Lloyd’s of London recently published its revised “Claims Management Principles and Minimum Standards”. The revisions came into force on 1^st April 2011 but Lloyd’s announced a nine month transition period to assess performance.  They form an integral part of the ongoing Lloyd’s Claims Transformation Project “to facilitate and increase the competitive advantage from the efficient handling of claims on their merits” The previous Minimum Standards date back to 2005. So what has happened over the intervening years?

The most significant change is surely the greater availability of web based systems that provide the users with cost effective and highly efficient tools with which to properly manage claims, whilst keeping costs, complaints and litigation to a minimum.

The publication identifies the following key areas where managing agents dealing with claims on behalf of syndicates authorised to conduct business at Lloyd’s, are expected to tighten up their claims management processes in the following manner:

• To have appropriate claims resources, skills and management controls
• Claims to be managed to conclusion, accurately and professionally
• Claims to be appropriately documented and stored for the requisite period
• Claim reserving to be consistent, timely and accurate, with possible costs and indemnity potential taken into account
• Disciplined procurement and management of third parties used in the claim
• Appropriate monitoring of claims management performance
• Appropriate protection for any parties involved in the process

If these are the standards expected by Lloyds then all parties involved in the claims management industry need to adopt a similar focus. Never before have effective document management systems been more imperative. Insurers and brokers are advised to invest in such systems that deliver all of the above bullets.

The cost is minimal against the benefits of a robust system that drives much of the claims process. And the burden of record keeping and retrieval is removed as all relevant documentation and photographs are electronically stored and instantly found with a few clicks. Cost savings are achievable whilst improving service delivery, keeping premiums affordable and reducing the risk of litigation.

According to the FSA, the claims handling process is one of the areas in which complaints are most common. This is unsurprising; it is the point at which conflict between policyholder and insurer or handler is most likely.

This conflict often arises from a sense that a claim has not been handled fairly, or that there has been insufficient communication between handler and policyholder. Optimising your claims process in order to ensure that the customer is kept in the loop throughout is therefore vital if you are to avoid disagreements.

In addition, though, optimising your claims handling process can provide significant resource benefits. By considering ways that you can deal with claims more effectively, you can reduce claim lifecycles, ease burden on staff, make better decisions more quickly, and ultimately become more cost efficient.

7 top tips for effective claims handling

1. Ease the submission process

   Your optimisation efforts should begin before you even receive a claim. Submitting a claim can be a daunting prospect for a policyholder – and you need to make it as easy as possible.

   Where feasible, give customers the opportunity to submit online. This will ease the burden on your contact centres – and, if you integrate the submission form with your claims management software, it will mean that you instantly receive data in a useful, standardised format. Additionally, a simple, well-designed submission form, with a properly considered user journey, will help to ensure that you get the information you need from policyholders with the minimum of effort on your part and theirs.

2. Delegate

   Consider ways that you can pass information to adjusters (or other relevant individuals) quickly. Ideally, your claims management software should send this information automatically, or alert individuals when an element of a claim requires their attention.

3. Prioritise

   Frequently, as with many processes, claims handlers simply act on claims in a reverse chronological order, with the oldest outstanding claim receiving their attention first. While this might seem like the fairest way of approaching the problem, it may not be the most effective.

   Instead, try to adopt a more agile approach, by identifying bottlenecks and tackling ‘easy wins’. Rather than getting bogged down with individual complex cases, try to prioritise in a way that opens up resources for big problems while leaving you free to complete simple tasks quickly.

4. Collate

   You can significantly reduce claims lifecycles by making sure that you have all the information you need to hand. Consider ways that you can collect the data you require, and store it in an easily retrievable, manipulatable way.

   An astonishing number of firms are still processing claims on paper. With the simple, cost-effective software solutions on offer today, there is no reason to rely on these inefficient methods any longer.

5. Automate

   The benefits of automation cannot be overstated. The larger the portion of the process you can automate, the quicker you will get things done.

   There is a significant range of tasks that can be automated within the claims handling process. At the very minimum, you should be automatically notified when a new claim is submitted. In addition, though, you should consider automatically assigning claims to individual adjusters. If you accept online submissions, you should also be able to automatically prevent policyholders entering incomplete or incorrect information – for example by using intelligent date fields.

6. Identify your KPIs…

   Optimisation is a constant process – it is not something that happens overnight. Think about what you want to achieve from the optimisation process. Do you want to reduce claims lifecycles? Do you want to reduce the number of claims assigned to each adjuster at any one time? Do you want to reduce the number of policyholder complaints?

   Identify your KPIs, and monitor your progress against these indicators. This will help you to judge whether you are on the right track, and which elements of the process need your attention next.

7. Be transparent

   Finally, remember that policyholders often value transparency and communication above all else. You can improve customer satisfaction and reduce complaints (and, by extension, eliminate resource sinks) by ensuring that your claims handling process is as transparent as possible.

   Consider ways that you can provide policyholders with the information they require. For example, you might choose to offer real-time claims tracking facilities, which allow policyholders to check the status of their claim online. You should also offer policyholders a range of contact methods, remembering that not everyone prefers online communication. Transparency and pro-active, open communication can help you to reduce the amount of resource required to deal with individual claims, and dramatically boost customer satisfaction.

If your firm deals solely with claims handling, you will already understand the importance of optimising this process. But if you are an insurer, you should remember that the claims process may well be the first point of contact between you and your customers. You should therefore work to make it as smooth a transaction as possible – both in order to streamline your workflow, and to maximise policyholder satisfaction.

Keep the Customer Satisfied

Insurance claims never occur at a good time. They are stressful. There has been a loss, and the customer expects a prompt and fair outcome based on the premium paid. No amount of effort will ever eliminate this stress, but intelligent customer relations management can go a long way to mitigating it. And innovative software tools make this a very cost effective option for insurers and brokers.

Public perception of the insurance industry is not good, with the media constantly focusing on the negative. All the customer needs to know is that their claim will be honoured with a minimum of fuss, and that it will not become a drawn out saga of interpretation and frustration. Proactive customer service techniques can present a potentially aggrieved client with a good customer experience that will generate positive feedback.

Effective customer management solutions may well result in the client renewing and even extending their cover as a direct result of the claim being brought to a successful conclusion.

Customer Relationship Management Tools

There are web-based software tools available today to achieve just the level of service that is needed to satisfy the claimant. These also provide analytical data that measures the level of retained satisfied customers, against those lost as a result of a poor claims experience.  The cost effectiveness of these customer relationship software tools will quickly become apparent.

One such example is a where a system generated text message in a personalised form is sent to each claimant to keep them informed of the various stages of the claim. Such stages could be: when the claim form has been received; when processing has commenced; confirmation of the loss adjuster’s appointment time; and confirmation of receipt of their report. These are just examples. The insurer or broker can set the content and timing of the texts to suit their business.

It is even good practice to communicate “no news” where unavoidable delays are occurring with the claims process, so the client knows that they are still in the “loop”. Reassuring and well chosen words will all help to keep the customer satisfied.

Regular communication is also very important where a fraudulent claim is suspected. Simple mistakes are made by people under the stress of their own lies, so frequent and regular communication may serve to identify fraud, or cases worthy of closer investigation.

This software provides a scheduler for all regular contact, and it records the content and outcomes of all communications with the claimant.

The Wrong Way

Silence, delays and “standard form” letters present the harshest treatment of a stressed customer. They will potentially inflame all stages of claims processing. Silence and delays leave the client feeling ignored and cheated, even if their claim is actually being processed diligently but quietly in the background.

Standard form letters seldom present useful facts or outcomes, and frequently the language used is inappropriate and authoritarian.  They can create anger and frustration for the claimant and should have no role in any customer relationship unless clear evidence of a fraudulent claim is at hand.

Such unimaginative and unfriendly measures can turn a customer from being a strong advocate for your insurance company into an antagonistic complainant with the consequent bad publicity.