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Ever heard anyone say ‘I love waiting’? No? It will come as no surprise then that new research from Cover Genius has found that claims payment delays are the biggest culprit when it comes to insurance customer dissatisfaction.
In fact, 35% of policyholders point to the time it takes to receive compensation as “the worst thing” about making an insurance claim. More interestingly, the study showed that 36% find chasing payments stressful but trudge on while 10% feel so stressed that they give up.
So how long of a wait are we talking about? According to the insurtech, customers wait an average of 10 and a half weeks to get compensated following an insurance claim.
“It’s no secret that the insurance industry has a problem with customer engagement,” stated Cover Genius co-founder and chief executive Angus McDonald.
“While insurtechs are using innovation to tackle this problem head-on, many incumbent firms – who don’t have the agility to adapt as quickly – are taking longer to shift old habits, and as a result, the negative customer experience is still there.”
Meanwhile the survey also discovered that customers are willing to shell out more to guarantee instant claims payments.
McDonald noted: “With customer dissatisfaction so high, there is a public appetite for change. The research shows that customers will pay more for a slicker claims service.
“Insurers that can put the customer at the heart of their service and expedite the claims process can reap the rewards of customer loyalty, increased renewals, and greater sales.”
