Education in claims and importance of claims experience in overall insurance bussines

October 2015

Madalin Rosu

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Claims = Insurance = Complexity

In order to improve customer service, insurers must progress from a transaction focus to an interaction focus

Traditional Objectives Modern Objectives

Reasonable response time Rapid response time

Efficiency Efficiency plus

Accuracy Accuracy

Compliance Compliance

Communication options

Flexibility

Subject matter expert intervention

Best subject matter expert

Analytics

claims

Claims inquiry

Beneficiary change

Investment redirection

Cash value withdrawal

Billing inquiry

Proof of insurance for

motgage

New car cover request

Premium payment

Transactions

• The claims handling process is the “moment of truth”

•Claims handling is the central criteria that clients use to judge an insurer.

•Services of the insurer that are perceived by the client to be adding value are vital.

• Claims handling offers a considerable potential to reduce costs.

• Claims handling is a source for new business.

Claims handling importance

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A well trained person will be able to deliver the promise to our client.

Training need to be in line with each employee.

Education

Education need to be forma-lized and recognized at a high level proving higher standards.

Recognition of knowledge

In these days where the competition and market conditions become tougher and tougher we need to concentrate on the client needs more than ever. For this we all need to focus on :

Education in claims

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Education in claims

A certified claim person, based on European standards can easily access a job in any EU country.

Join education standards assure high level quality in the financial industry and EFICERT jointly paves the way

Education in claims is not anymore a issue of particular insurer or a market

Education in claims area is very important and there is existing a specific attention at European level

A proper trained claims inspector will deliver the proper service to the client

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Romanian practice

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C1.1M

MTPL

C1.1M

MTPL

Claims specialization structure Claims specialization structure

C1.2MMotor

Hull

C1.2MMotor

Hull

C1.3MInternal

Regulation

C1.3MInternal

Regulation

C1.4MEU

Directives

C1.4MEU

Directives

C1.5M

Fraud

C1.5M

Fraud

C2.1NMLegislation

C2.1NMLegislation

C2.2NMProperty

C2.2NMProperty

C2.3NMFinancial

C2.3NMFinancial

C1M Motor

C2NMNon Motor

C2.2NMLife&Travel

C2.2NMLife&Travel

20 H

EXAM

20 H

EXAMCERTIFICATION

CERTIFICATION

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Claims handling is a core process

!

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E

T

Bmotions

houghts

ehaviour

Client is not different than us

Why so important?

1. A high price does not cause a customer to leave, but a negative experience in contact with company employees, YES – Accenture global satisfaction report

2. For every complaint there are 26 other customers with the same problem which not complained – Lee Resource

3. 2% increase in customer retention means as much as 10% cost reduction – Leading on the Edge of Chaos, Emmet Murphy & Mark Murphy

4. 96% of unhappy customers never complains, but 91% of them will simply leave and not coming back – 1Financial Training services

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6. A dissatisfied customer will tell 9-15 people about his experience. Around 13% of unhappy customers will tell on other 20 people to about this. – White House Office of Consumer Affairs

7 It takes 12 positive experiences to repair a negative experience – “Understanding Customers” by Ruby Newell-Legner

8. A customer treated professionally and whose issue is resolved, it becomes a brand advocate for the company

5 Over 70% of consumers recounted experiences relate to the way they were treated – McKinsey

Why so important?

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Simple and basic expectations

Common claims service

expectations

Added value

• normal and reasonable reimbursement

• Fast and not bureaucratic handling• Individual support• Personal contact

• Problem solutions and services which positively surprise the client

Motivation to buy

Full Customer

Satisfaction

Claims experience leading to customer satisfaction

Claims Management is an optimal way to generate Customer Value

• However, this opportunity is rarely used in the insurance world.

• Generally, there is little emotional connection with the insurer that results in a conviction that the customer has found the best solution.

• Therefore, customer orientation offers numerous opportunities to increase customer value.

Customer Orientation

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Education is not important !Education is extremely important !