Relationship marketing includes caring that your client’s claim is handled properly — and that the 'other party' is properly taken care of as well. You aren’t the insurance company, you’re the expert risk manager who accesses company coverages to protect your clients. This document by Jack Burke asks whether you’re treating claims as problems to be processed or opportunities to be explored.
Property/Casualty insurance is a unique industry. The sale is nothing more than a 'promise' and the customer doesn’t take delivery of the 'product' until they file a claim. A successful agent must put significant effort into creating unique distinctions in the presentation of the 'promise.' These efforts might include the branding of the agency, risk management, value matching the premium and coverage with the risk, client communications, education, and so on.
However when it comes to a claim and delivery of the 'product,' the agent is sometimes conspicuously absent as the company claims department takes over. If the insured runs into difficulties, the agent might be called upon to run interference for the client; but by and large the agent often becomes a nonentity. In the majority of claims, this works fine. The company expediently handles the claim and the insured gets the check. Although some customer-focused agents insert themselves into the process, many simply go about their business. No news is good news. If the client doesn’t call with a problem, everything must be OK.
This is something like a car salesman who makes a sale, but doesn’t stick around to handle the delivery of the vehicle to the customer. How can you begin developing a lasting relationship if you aren’t there for the delivery of the product? It seems as if the larger the company, the further removed its agents are from the claims process.
Yet smaller regionals, such as National Grange along the Eastern Seaboard, take pride in making the agent a vital part of the process. In fact, the agent has the option of writing the check and personally delivering it to the client — often within 24 hours.
Let’s take the topic of claims handling a little farther. So far, we’ve been talking about the processing of a claim for 'your client.' What about 'the other party'? For example, if your client is liable for an Auto damage claim, how well does your company treat the injured party’s claim?
At this point you’re probably wondering what I had for breakfast this morning. After all, as long as your client is happy, why should you worry about someone else who isn’t your client? Bear with me. From the largest city to the smallest town, most independent agents have a core geographic area in which they market their services. This isn’t a limitless area — in fact, it could be argued that every agent maintains a 'small town' of customers and prospects.
If you accept this philosophy, you know how quickly gossip can spread within a small town. The 'other parties' in a claim can become either your advocates or enemies. If your company handles their claims with expeditious sensitivity, they’ll tell their friends how well they were treated. Because you represent the company, the claimant’s good words will help build your brand identity and credibility with potential customers — and solidify relationships with existing clients. On the other hand, if your company makes these claimants jump through hoops, they’ll spread that message even further. Their 'gossip' hurts the brand you represent — and thus hurts you.
In the 1960s and 70s, a major national Personal Lines insurer became very aggressive in claims adjusting. Claimants would arrive at body shops with the company settlement only to find out that the shop wouldn’t do the work for the price. Everyone within the auto industry was bad-mouthing this company to the point of costing it major market share, forcing this carrier to spend millions on rebuilding an image that it had destroyed.
Here’s another kicker. Considering that many agents never even follow up with their own clients after a claim, you’re really going to think I’m going nuts with this suggestion: call the 'other party' afterward to introduce yourself and ask if everything’s OK. Before you shout, 'I’m not going to open that Pandora’s box!,' think it through. The fact that this other party lives in your 'small town' of market influence makes them a potential client. In fact, they could be one of your very best prospects because they’ve already experienced your 'product' (service). They’ve been involved in the delivery after a promise. If your company has treated their claim with dignity and respect, they’re very warm. If you follow up with compassion, you could easily open the door for their business.
This is what relationship marketing is all about: being human and caring. It’s about caring enough to make sure the companies that you represent are good at delivering the product when called upon to do so. It’s about caring that your client’s claim is handled properly — and that the 'other party' is properly cared for as well. It’ showing a sense of compassion for everyone involved in the claim. You aren’t the insurance company, you’re the expert risk manager who accesses company coverages to protect your clients.
Are you treating claims as problems to be processed, or opportunities to be explored? Are you defaulting your role to the company, or taking an active role in the delivery of your product? Are you focusing on relationships?