Digital Insurer: Claims Customer Survey

Accenture Insurance Claims Customer Survey

Why claims service matters

Key findings

• Customers are generally satisfied with their insurance providers

• However, almost one in three are likely to defect

• The claim is a powerful trigger for switching

• Most insurers deliver a satisfactory claims experience

• Dissatisfied customers are almost sure to defect

• Speed and transparency are key to satisfaction

• Claims fraud is rife, with customers blaming high premiums and poor

service

The claims experience

has a major impact on

customer retention

Digital provides the

opportunity for claims to

become a competitive

differentiator

Customers would

welcome additional

claims-related services

and help in managing

their risk

• Customers expect to use their preferred channels to interact with their insurer when claiming

• Digital channels are growing in importance

• Mobile apps have a key role to play, but most customers know little about them

• Customers are quick to turn to social media.

• Customers will share personal information if insurers will reduce their premiums or speed up their claim

• They want insurers to help them reduce – not just insure – their risk

• They would welcome value-added services that reduce the trauma and inconvenience that accompany the claim

2 Copyright © 2014 Accenture All rights reserved.

Recommendations

• Customer-centricity – meet the changing needs of an evolving customer

• Agility – respond quickly & effectively to threats & opportunities

• Proactivity – identify individual customers’ risks & help them manage them

• Digitalization – capitalize on innovation to gain a competitive advantage

• Customer service

Gain a deep understanding of customers – use the claim to collect more data

Enhance segmentation & provide differentiated, more relevant services

Improve claims prevention modelling & fraud detection

• Technology

Utilize a modern claims processing system

Support claims handlers to focus on the right value-adding actions

Support the channels customers prefer to use

Exploit innovations eg. telematics, Internet of Things

• The workforce

Make the job less transactional, more consultative

Ensure the right people are working on the right claims

Exploit analytics & collaboration tools to optimize efficiency & service

• Data & analytics

Collect & organize data from all internal & external sources

Set up a dedicated claims analytics organization

Create a data-driven claims lifecycle, with 360° view of the customer

Insurers need to

fundamentally rethink

the claims function

across four dimensions

Tackle the main building

blocks of an optimized

claims function

Survey methodology

7,875 insurance policy holders were surveyed online in 14 countries in the month of May 2014

3,860 answered the survey

with regard to their

home insurance

Men 3,965

(50%)

Women 3,910

(50%)

Total: 7,875 (100%)

Countries

Respondent gender group

4,015 answered the survey

with regard to their

auto insurance

40% of the respondents had

submitted an auto or

household insurance claim

in the past two years

1,152

1,680

1,723

1,795

1,525

18-24 years

25-34 years

35-44 years

45-54 years

Over 54 years

(15%)

(21%)

(22%)

(23%)

(19%)

Respondent age

Canada 571 (7%)

USA 1,000 (13)

Finland 560 (7%)

UK 569 (7%)

Sweden 537 (7%)

Norway 544 (7%)

France 520 (7%)

Netherlands 520 (7%)

Italy 516 (7%)

Denmark 514 (7%)

Turkey 507 (6%)

Germany 503 (6%)

Spain 500 (6%)

Brazil 500 (6%)

Copyright © 2014 Accenture All rights reserved. 4

Note: Due to rounding off of decimals, the segments of all the bars

in the graphs featured in this document may not add up to 100%.

Key Findings


6

Customers are generally happy with their insurance companies

Q: How satisfied are you with your insurance provider for your main

insurance policy?

Very satisfied

Satisfied

Dissatisfied

Very dissatisfied

All Respondents

5%

2%

Non-Claimers Claimers

93% 91% 94%

26%

67%

4%

2%

25%

69%

6%

3%

28%

63%

Copyright © 2014 Accenture All rights reserved.

Despite high levels of satisfaction, almost one out of three

customers plan to switch to a new provider in the next 12 months

Q: How likely are you to stop doing business with one of your insurance

providers and to switch to another provider in the next 12 months?

30%

44%

26%

5%

25%

Very likely

Quite likely

Not very likely

Very unlikely


The new provider has lower prices than my current insurance provider

The new provider does not reject claims as often as my current provider

I trust the new provider more than my current insurance provider

I am not satisfied with my current provider’s management of my claims

The new provider promises earlier resolution of claims than my current provider

The new provider gives me the ability to bundle insurance products and services to get a discount

New insurance provider is more proactive in helping me manage and reduce my risks

The new provider gives a more personalized customer service

The new provider has a better e-commerce capability

5%

5%

8%

4%

6%

6%

5%

10%

8%

17%

16%

18%

18%

19%

25%

20%

30%

46%

54%

56%

51%

55%

52%

51%

60%

46%

44%

25%

23%

23%

23%

23%

17%

15%

15%

Price is the main reason customers may switch providers,

but the claims experience is also important

Q: How important would these criteria be in your decision to stop doing business with your insurance providers and to switch to another provider in the next 12 months?

2%

8 Copyright © 2014 Accenture All rights reserved. Not at all important Not important Important Extremely important

Most customers are satisfied with the handling and

settlement of their claim

Q: How satisfied are you with the way in which your last claim was

handled and settled?

Sample base = All respondents who submitted a claim in the past 2 years

Auto Insurance

Claimers

Home Insurance

Claimers

Very satisfied

Satisfied

Dissatisfied

Very dissatisfied

13%

3%

34%

50%

10%

3%

32%

55%

9

All Claimers

11% 3%

33%

53%


Many dissatisfied claimers have already switched providers

or plan to do so

Q: How satisfied are you with the way your insurance provider handled

and settled your claim?

17%

I have switched to another insurance provider

It didn’t impact my relationship: I will stay with my current insurance provider

29%

I am planning to switch to another insurance provider

54%

All Dissatisfied Claimers

10

Very satisfied

Satisfied

Dissatisfied

Very dissatisfied

83%


11%

33%

53%

All Claimers

3%

All non-claimers

All claimers

Satistied claimers*

Dissatisfied claimers**

* Claimers who are “satisfied” plus “very satisfied”

** Claimers who are “dissatisfied” plus “very dissatisfied”

Claimers are twice as likely to switch as non-claimers, regardless

of how satisfied they are – but dissatisfaction drives switching

Q: How likely are you to stop doing business with one of your insurance

providers and to switch to another provider in the next 12 months?

11

22%

39%

31% 47%

19% 3%

20% 39%

33% 8%

21% 41%

32% 7%

10% 25%

47% 18%

vs.

41%

vs.

65%

+

+

+

+


Very unlikely Unlikely Likely Very likely

Likely to switch

Speed of settlement

Explanation and transparency of the claims process

The ability to contact your provider anytime to check the real-time status of your claim

Frequency and timeliness of communication (updates on your claim status)

Empathy and care of staff

Multiple channels to connect with your provider (e.g. phone, email, smartphone app, Internet, etc.)

Speed and transparency of the claims process are the most

important contributors to customer satisfaction

Q: How important for you are the following during the claims process?

5%

5%

9%

9%

11%

17%

44%

49%

54%

57%

61%

52%

51%

45%

36%

32%

24%

28%

12

1%

1%

1%

1%

3%

3%

Copyright © 2014 Accenture All rights reserved. Not at all important Not important Important Extremely important

21%

36%

18%

10% 9%

8%

5% 4% 4%

3% 2%

27%

34%

11% 13%

7%

12%

8%

6%

4% 2% 3%

27%

30%

12%

14%

7%

11% 10%

6%

3% 4% 3%

Digitalchannels*

Phoneinsurer's call

center

Meet an agent E-mail Letter Insurer'swebsite/portal

Third-partyfacility

Text message Online chat oninsurer'swebsite

Insurer'ssmartphone/

tablet app

Insurer's socialmedia page

Digital is important when it comes to claiming, but the phone

remains the most popular channel

Q: Which channel did you primarily use for these three actions relating to

your most recent claim?

* Digital channels = website + online chat + social media + smartphone/ tablet app + text message


Submit first notice of loss Check your claim status Check status of repairs/replacement

52%

61% 59%

56%

49%

38%

41% 47%

46% 45%

47%

34% 38% 37% 36%

33%

43% 39%

39%

26% 21% 20% 23%

9%

5% 5% 7%

4% 5% 5% 4%

Insurance customers expect to be able to use digital

(including mobile) channels when filing a claim in future

Q: Should you submit a claim in the future, which channels do you think

you would prefer to use for these different actions?

Digital channels*

Phone insurer’s call center

Website / portal

Smartphone / tablet app

Agent / broker

Letter

Social media

E-mail

* Digital channels = website + social media + smartphone/ tablet applications

14

Submitting your

claim / first notice

of loss

Checking the

status of your

claim

Checking the

status of your

repair work

Checking the

progress of your

medical / injury

expense claim


I would switch to another provider

Disagree

I would not recommend my

provider to friends and family

Agree

I would be less satisfied

Many customers would switch insurance providers

if they could not use their preferred digital channels

Q: If you could not use your preferred digital channels to interact with

your insurance provider during the claims process, how would this affect

your relationship with your provider?

15

39% 61%

47% 53%

56% 44%


16

Most customers like the idea of insurance apps,

but know little about them

Q: How aware are you of the

smartphone / tablet apps which

many insurers have developed

for their customers?

Q: Are you using an insurer’s app,

or do you plan to?

Sample base: all who have

heard of these apps

I’m not interested in

using such an app

I’m not currently

using such an app

but plan to in future

I’m currently using

such an app

37%

53%

11%

64%

43%

46%

11%

This is the first I’ve

heard of these apps

I’ve heard of these

apps but don’t know

much about them

I’ve heard of these

apps; I understand

how they work and

what the benefits are


57%

58%

67%

69%

71%

70%

22%

24%

22%

21%

20%

23%

21%

17%

10%

9%

9%

7% I post or plan to post my negative claims experience

I post or plan to post my positive claims experience

I ask questions about the insurance claims process on social media

I look at social media to stay up to date with the latest trends in insurance digital claims

I base my insurance buying decisions on a comparison of others’ claims experiences

I read reviews which other people post regarding their insurance claims experiences

Approximately 1 in 3 customers use social media to read or

write about the claims experience – or plan to do so

Q: Which of the following have you done regarding insurance and social

media – or plan to do in the next two years?

17 Copyright © 2014 Accenture All rights reserved. Not done and don’t plan to do it Not done but plan to do it Already done

28% Receive information on relevant insurance products

Receive personalized recommendations to help me manage risk & avoid loss

28%

Receive early-warning messages to help me manage risk & avoid loss

30%

Get recommendations for personalized insurance

32%

Speed up my claim settlement 59%

Reduce my insurance premium 77%

Most customers would share personal information with their

insurer in return for lower premiums or quicker claims settlement

Q: Would you be willing to share personal information on your

usage or behavior with your insurer, in return for certain benefits?

Which benefits would most encourage you to share this information?

Sample base: respondents willing to share information

Willing to share

information

18

23%

77%

Not willing to

share information


Alerts from sensors in your home warning you

of potential fire, electrical faults, water leaks etc.

Most customers are interested in receiving information

to help them manage the risks that could lead to loss

Q: How interested would you be in receiving the following types of

information?

Somewhat interested Very interested

19

45% 26%

44% 18%

33% 12%

40% 17%

Best practices for protecting your home

Best practices for avoiding domestic /

car accidents

Information sessions / meetings to learn how

to reduce risks


One in six customers admit they overstated the value of their

loss when they last submitted an insurance claim

Q: When you last submitted an

insurance claim, did you overstate

the value of your loss?

Q: Why did you overstate the value

of your loss?

Everyone I

know does

it

I believe I

can get away

with it

Insurance

service is

poor

My

premiums

are too high

Sample base: respondents who admit they overstated their claim

20

No: 83%

Yes: 17%

42% 37%

14%

7%


The admission of claims overstatement is higher

for home insurance, and among younger customers

Type of Claim

Sample base: Those who admit to having overstated their claim

Home

Auto

21%

15%


Age of Customer

18-34

35-54

55+ 3%

29%

10%

Recommendations


Insurers need to fundamentally rethink the claims function

across four dimensions

Meet the changing needs of an evolving customer

Capitalize on innovation to gain a competitive advantage

Respond quickly & effectively to threats

& opportunities

Identify individual customers’ risks & help them manage

them

Claims Function


Insurers should consider four main building blocks when

striving to create an optimized digital claims function


Data &

analytics

The

workforce

Technology

enablement

Customer

service

Put the customer first when delivering claims service

• Gain a deep understanding of customers – use the claim to collect more data

• Enhance segmentation & provide more differentiated & relevant services

• Improve claims prevention modelling & fraud detection

• Develop retention strategies based on propensity to defect

• Optimize channel capabilities to meet customer expectations

• Empower agents to deliver a high service standard

• Share up-to-date information across all touch-points


Capitalize on technology to enhance efficiency & service

• Use a modern claims processing system

• Support claims handlers to focus on the right value-adding actions

• Provide the channels customers prefer to use

• Deploy digitally enabled end-to-end servicing

• Expand self-service

• Use mobile for quicker service & to add value

• Exploit innovations eg. telematics & Internet of Things


Rethink the claims workforce

• Make the job less transactional, more consultative

• Ensure the right people are working on the right claims

• Use technology to collect & interpret essential information

• Exploit analytics & collaboration tools to optimize efficiency & service

• Establish performance-based culture

• Promote innovation at all levels

• Use open systems to support service by claims ecosystem partners


Exploit data & analytics to take claims to the next level

• Collect & organize data from all internal & external sources

– Include unconventional sources eg. social media

• Prioritize data that enables benefit-generating actions

• Set up a dedicated claims analytics organization

• Enhance fraud-prevention analytics capabilities

• Use connected-insurer data to offer value-added services

• Aim to acquire a 360° view of the customer

• Create a data-driven claims lifecycle


Visit our website to interact with the full set of data

and download the report:

www.accenture.com/insurance-claims-survey

Join the conversation #digitalinsurer


http://www.accenture.com/insurance-claims-survey





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Digital Insurer: Claims Customer Survey