Insurance agents sell clients a promise-an intangible product. It is nothing they can hold or enjoy and probably what someone told them they ought to have. It's an idea: peace of mind. They depend on their policy to take care of them if anything bad ever happens.
Then something unpleasant happens, and clients call, knowing or hoping they have coverage. They might be upset or even angry about what has just happened.
Great Expectations
'I finally get to USE my insurance,' they say. And heaven only knows what the clients expect from us and from the coverage they've purchased. Perhaps they've been watching commercials, in which the agent rushes to the scene of the accident late at night and climbs up to view the damaged roof. Will we be able to meet their expectations for service?
At this moment of our client's need, it is imperative that we not only meet their service expectations but exceed them. So doing will build the agent/client relationship and help insure client retention.
Two Approaches
Two schools of thought exist on how an agency should handle claims, and both have advantages. The agency must decide which way is best for its needs and build processes that will enhance the quality of their customer claims service.
Agency Claims Department: Some agencies have a person or persons who do nothing but handle claims. This can work very well as these people learn the claims procedures followed by various insurance companies. The downside is that customers are passed on to someone other than their agent. The more people a client must deal with, the greater the chance for customer dissatisfaction. This person is also not as familiar with the client's file or the best way to communicate with this client. The agent may be better equipped to do some risk management for the client, too. However, an agency with a fully loaded customer database can provide the claims person with most of this information, including claims history, through the customer screens.
Customer Service Agent: My agency, which is automated with a fully loaded customer database, has determined that this method works best for us at this stage of our development. Claims can be processed quickly and efficiently by the person with whom the client is familiar.
Communication
The claims-handling process MUST be fully explained to the client. Since our job is to take the information and forward it to the company, we normally verify address and telephone numbers. (It would greatly delay contact with the insured if the system's existing information were outdated, and then the form were faxed, electronically transmitted, or mailed to the company.) After the claims information is completed, the agent needs to follow the agency's procedures, then consulting the company matrix to determine the time frame involved and when the client should expect a call from the adjuster.
It is imperative that the client understand that, to serve them better, a professional adjuster will be handling their claim. We ask clients to call us if they have any problems or if the adjuster does not contact them within the allotted time frame. Our philosophy requires us carefully to put clients in touch with the person who will handle the claim while letting them know we are always there for them should a problem occur. We don't get involved before the company has a chance to settle the claim properly. Saying too much or having an agent inject personal opinions could jeopardize our further relationship with the carrier, as well as with the customer.
People Skills
Each agent handling claims must be thoroughly trained in people skills. We teach our staff personality styles so that they can better deal with clients who communicate differently or become difficult in a stressful situation. Each staff member must remember 'Where is this person coming from? Why is he or she reacting this way?' It is also important to be able to use open-ended questions to get to the root of a client's expectations or irritation. These would include questions such as, 'What can I do to help? Tell me about the accident?' Get the customer talking and put your listening skills to work. We should be listening to the client 70% to 80% of the time and talking 20% to 30% of the time.
Process
Every person in the agency must follow the same process for handling claims. The process must be constantly updated and reviewed. A team should be appointed for these reviews and updates.
Automation and the Claim Process
A fully loaded customer database, or CRM, is the key to handling claims quickly and efficiently. Follow-up activities can be set, and any staff member can pull up specific details of the claims settlement tracking. The agency can follow up on all claims that have not been settled and point out areas in the company process that might be causing problems.
Through the automation system, a listing of all reported claims and claims settlements should be reviewed at each staff meeting. Only by using the measurement tools available to us can we ever hope to manage claims and improve our internal and external processes. 'It can't be managed if it can't be measured.'
The Agency as Risk Manager and Educator
Tracking our losses and loss trends can help us serve our community. By way of stuffers, community programs, public service announcement, or news releases, the agency can include information on items such as flood, earthquake, lightning, fire safety, wood stove safety, Christmas shopping safety, fire retardant Christmas trees, lightning rods, surge protectors and equipment guaranteed to stop lightning from entering electronic equipment,
crime tips, etc. This type of information can help the agency and industry improve their image, as well as the agency's loss ratio.
Claims procedures and claims involvement are an opportunity for the agency to shine in clients' time of need. Seize this opportunity!