Looking deeper into the numbers from the recent satisfaction survey by J.D. Power shows how the industry has changed for the better, says the man who has studied the insurance industry from the inside out for more than a decade.
“When we first got started looking at the insurance purchase and service experience for consumers 15 years ago more companies thought that their responsibility ended at the payment of the cheque,” says Jeremy Bowler, senior director of the insurance practice at J.D. Power. “They saw their role as estimating the damage, providing the means to finance your vehicle to get it repaired, and after that, you’re on your own.”
The fundamental shift in attitude by the industry – of placing customer needs and satisfaction much higher – is what has created an unbelievable 11 point upswing in customer satisfaction, says Bowler. And it shouldn’t come as a surprise that
Desjardins ranked highest in overall claimant satisfaction, as it lead in the three categories of first contact, repair experience and settlement.
“To see such a significant change in a 12-month period in such a complex system is very impressive,” Bowler told
Insurance Business, adding that the key to improving satisfaction is to remove a lot of stress from making a claim.
“When we look at the collision claim experience, a great many customers are unsure as to whether they call their agent or broker, or do they call the insurance company directly,” he says. “They may also not know what their deductible is; if they get coverage on a rental car – there are a lot of questions.
“All they know is that they have insurance.” (continued.)
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The J.D. Power 2014 Canadian Auto Claims Satisfaction Study measures customer satisfaction with the claims process for auto physical damage loss. Depending on the complexity of the claim, claimants may experience some or all of the following factors that drive overall satisfaction: first notice of loss; service interaction; appraisal; repair process; rental experience; and settlement.
Year over year, the industry has significantly improved in putting claimants at ease after they report the claim (up by 4 percentage points to 61 per cent) and in notifying repair facilities about the claim at first notice of loss (up by 6 percentage points to 30 per cent). Also, the percentage of respondents indicating they receive proactive claim status updates is up 3 percentage points to 53 per cent in 2014.
To see customer satisfaction in a business that has so many interactive parts that could potentially go wrong is what continues to impress Bowler.
“We’re talking about services that are rendered each and every day,” he says, “and even more startling, we’re talking about an industry where it takes a group of parties to make a customer whole again.”
Bowler points to the moving parts within the industry: the insurer who handles the claim and pays for the damages, the tow truck operator, the body shop that does the repair work, and the rental car company that provides alternate transportation.
“These all come together – ideally communicating well with each other, with efficient hand offs so the customer isn’t questioning what is happening for too long – and ultimately settling to the satisfaction of the customer,” he says. “That is a very complex problem the industry does very well.”
To see where your insurer placed, click
here.
