Claims satisfaction often comes down to speed. The claimant has a problem and wants it fixed ASAP. If you can do that, you stand to win a customer who’s loyal for life. If you fail, your marketplace’s reputation might take a hit. Claims will happen, so it’s important to make sure you’re ready to provide a fast claims process. Data makes this possible.
Claims Satisfaction Is Imperative to Success
We explained how the claims experience impacts your brand’s reputation in a previous article. One of the biggest takeaways is the fact that about one in three people say a single bad experience will prompt them to quit doing business with a brand they love. It’s also important to note that the internet has given people a way to spread the word about their bad experiences, and nearly half of consumers say they research a company’s customer service before deciding whether to use that company.
People want to work with companies that they can trust. When a claim happens, that trust is put to the test. This is your chance to prove yourself.
Speed Is a Key Element
A lot of things can impact claims satisfaction, but speed stands out as an especially critical element.
The J.D. Power 2022 U.S. Property Claims Satisfaction Study found that satisfaction scores dropped to a five-year low, and slower claims cycles were pinpointed as a big part of the issue. The amount of time needed to complete repairs increased by 2.9 days compared to the previous year, and claimants weren’t happy about this.
Slow processes have a major impact on overall claims satisfaction, and it’s a leading source of insurance complaints. According to Value Penguin, data from the National Association of Insurance Commissioners shows that the most common complaint is about unsatisfactory settlement offers, but the second most common complaint is about claim delays.
McKinsey & Company identified five elements that drive claims satisfaction. Employee courtesy and knowledge are two key elements. Two more elements involve the ease of communicating with the insurer and the transparency of the process. Unsurprisingly, the fifth element is the speed of the claim settlement.
Claimants want to get a fair settlement. The longer a claim stays open, the higher they expect a fair settlement to be. But your delays in closing a claim don’t mean you will be issuing a bigger check, and that can have an effect on satisfaction . At the end of the day, both you and the claimant want the claim resolved as fast as possible.
Data Is Powering Speed
LexisNexis says that auto insurers that are embracing automation are seeing significantly lower cycle times. When a more traditional approach is used, average claims can take 10 to 15 days. When a fast-track approach is used, claims can take four to six days.
People want fast claims processes, and technology is delivering. Thanks to data and automation, insurers can settle claims more efficiently than ever before.
As a result, the bar is being raised. Expectations change rapidly in response to new technology, so as faster claims become possible, faster claims also become expected. Companies that don’t keep up risk seeing their customer satisfaction numbers plummet.
Squeezing Value from Your Data
When you think about what’s required to manage your marketplace’s risks, you might think of a few different things:
- Screening. When people apply to use your platform as either a renter or owner, you need to conduct screening and property onboarding to keep your risk under control.
- Coverage. When you provide insurance to users, you need to conduct insurance underwriting.
- Claims. If a claim happens, you need to assess the claim to determine the settlement.
These can be seen as three separate processes, but a lot of the data involved is the same. By linking all three processes, you get a faster, more efficient system.
How Data Helps DigiSure Customers Outperform Industry Norms
At DigiSure, we support every step of risk management, starting with property onboarding and user screening. We also provide insurance coverage and claims handling. This approach offers many advantages, one of which is a running start on the claims process.
When a claim occurs, we already have information about the asset, the owner and the renter, as well as the insurance policy. We don’t have to burden your platform users with lengthy forms. Because we manage every step of the process, we already have most of the information needed to process the claim.
The only data we typically need to collect is information pertaining to the incident and resulting damage. That part is easy too because photos can easily be uploaded via the user app.
Having readily accessible data enables an easy claims process and fast resolution. In fact, our average time-to-close for routine claims is six days, which is unheard of in the claims industry.
With our support, your marketplace can leverage data to reduce claim cycle times and boost customer satisfaction.
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