Posted by Andrew on December 2, 2019
It’s common knowledge that first notice of loss (FNOL) represents the greatest opportunity to establish the insured’s satisfaction level. After this point, it is difficult to move the needle so it’s vital to ensure a smooth start to the claim. However, there are other factors at play when it comes to customer loyalty and retention.
It’s no surprise that millennials and other younger generations have a preference for technology when it comes to initiating and managing their claims. There is also a growing mentality that customers should be able to receive updates on their claim anywhere, at any time, in any way they so desire. This most often means having access to an online portal either through their smartphone, tablet, or computer.
In fact, when polled, 52% of auto claimants and 54% of homeowner claimants reported they would not recommend a provider that bars or lacks access to their preferred digital channel. Among customers that ranged between the ages of 18-24, that statistic jumped to 58% for both categories.
What makes this loss of recommendation so damaging is that younger generations rely on technology for research. If their peers are leaving negative reviews, it makes it very difficult for that insurer to appeal to them. Exemplifying the point, 41% of customers under 35 will post to social media and review sites about their negative experience compared to only 26% of customers aged 35-54 and 17% of customers 55 and older.
The biggest challenge insurers are facing isn’t a shift in what their customers expect; it’s a change in where customers set the bar. Technology has allowed claims to move from FNOL to settlement faster than ever while granting customers unparalleled levels of access and control over the process. The pace isn’t likely to slow down anytime soon given the rate and sophistication of new tech and devices available on the market.
While every generation is growing more tech-savvy, there is no doubt that younger generations are driving the demand for transforming the claims process. Retaining customers lies in meeting these heightened expectations with a foolproof claims process. Contact the experts at Actec to learn about our custom solutions for your claim intake needs.