Post on 11-Jul-2015
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
5 Copyright © 2014 Accenture All rights reserved.
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
7 Copyright © 2014 Accenture All rights reserved.
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%
Copyright © 2014 Accenture All rights reserved.
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%
Copyright © 2014 Accenture All rights reserved.
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%
+
+
+
+
Copyright © 2014 Accenture All rights reserved.
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
13 Copyright © 2014 Accenture All rights reserved.
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
* 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
Copyright © 2014 Accenture All rights reserved.
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%
Copyright © 2014 Accenture All rights reserved.
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
Copyright © 2014 Accenture All rights reserved.
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
Copyright © 2014 Accenture All rights reserved.
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
Copyright © 2014 Accenture All rights reserved.
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%
Copyright © 2014 Accenture All rights reserved.
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%
21 Copyright © 2014 Accenture All rights reserved.
Age of Customer
18-34
35-54
55+ 3%
29%
10%
Recommendations
22 Copyright © 2014 Accenture All rights reserved.
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
Copyright © 2014 Accenture All rights reserved. 23
Insurers should consider four main building blocks when
striving to create an optimized digital claims function
Copyright © 2014 Accenture All rights reserved. 24
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
Copyright © 2014 Accenture All rights reserved. 25
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
Copyright © 2014 Accenture All rights reserved. 26
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
Copyright © 2014 Accenture All rights reserved. 27
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
Copyright © 2014 Accenture All rights reserved. 28
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
29 Copyright © 2014 Accenture All rights reserved.