When it comes to selecting an insurance provider, whether for home, auto, business, or otherwise, customers look at several core elements when making their decision. Insurers that want to remain competitive need to analyze what these individuals want in order to implement practices that will retain existing customers while enticing new ones.
When choosing an insurer, people consider the following metrics:
- Cost. Everybody has a price limit in mind for how much they’re willing to pay for the coverage they need. While some individuals will sacrifice coverage in lieu of a lower price tag, not many are willing to take this route. If a provider’s rates are too high, the individual will look elsewhere for coverage. While several factors influence what rates a provider can offer, insurance companies need to keep this fact in mind when considering their target audience.
- Customer satisfaction. Even if an insurer offers great rates, potential customers will give them a wide berth if the reviews are lukewarm. Satisfaction ranks pretty high on customers’ priority lists and includes courtesy, how easy it is to reach a representative, and timely communication.
- Discounts. With price being a significant influence on a customer, many insurance providers offer discounts to offset premiums. Many of these discounts benefit both parties, such as bundling services. The insurer secures two policies while the insured receives a discount. Other discounts include good student discounts, safety feature discounts, safe driver discounts, and discounts for individuals that belong to certain groups such as AAA.
- Claims. Claim satisfaction is a significant indicator for customer retention and acquisition. Even if a provider offers fantastic rates and discounts, no one wants to rely on a company with protracted, lackluster claims services. Customers expect the claims process to be simple to navigate from start to finish. They will not hesitate to find a new provider after a negative claims experience.
A variety of factors affect what insurance provider a customer will choose as well as whether they will stay with their existing provider. While cost and discounts can fluctuate, satisfaction with the claims process can make or break the customer-provider relationship.
When a customer initiates a claim, they’re trigging first notice of loss (FNOL). This represents the single greatest opportunity a provider has to ensure a satisfying experience. If a customer completes FNOL and leaves the interaction unhappy, it is very difficult to improve that individual’s satisfaction with the claim from there. Contact the experts at Actec to learn more about improving FNOL and customer claim satisfaction.
As more cars integrate some sort of smart technology, auto insurance agents find themselves wondering if they will soon be out of a job. While OEMs can report accidents and get the first notice of loss (FNOL) process rolling, agents can rest easy. Customer, particularly younger customers, still want a human element involved in their claims process. This is great news for insurance agents as Generation Y made up the largest portion of auto insurance claimants for 2016 at 40%—this is a 7% increase from 2015.