For consumers, there are two key insurance moments: when coverage is bought and then when it’s used, with hopefully a long span of time between the two. And if there is a claim, then it’s up to the insurer to react to help the claimant recover. But too often, the claims experience spurs policyholders to consider changing insurers, especially among policyholders who’ve been customers longer (and have been paying premiums longer).[i] What else happens when there’s a policyholder unhappy about a claim? Claimants readily take to social bully pulpits with their claims grievances, effectively using Twitter and Facebook to “regulate” insurers into action.
In addition, they also file complaints with state insurance regulators, an activity that about 34,000 US consumers did in 2013.What’s their biggest gripe? A look at the National Association of Insurance Commissioners (NAIC) stats reveals that 56% of consumer complaints filed in 2013 were issues related to claims handling, with the biggest chunk, 24%, because of perceived delays. And that’s not counting delays associated with getting referrals, pre-authorizations, and finding willing providers.[ii]
Over the past year, I’ve been involved in a variety of client advisories focused on the claims experience for both consumers as well as insurer work teams responsible for getting claims paid. Why is the claim experience so easy to go off track? For starters:
It’s one thing to say where you want to go, but you still have to know how to get there. If it’s a physical journey like a quick trip to the local store, a meandering trek across Europe, or a digital or business technology initiative that your company is after, getting to the destination or end state demands a road map. Maps show all the options to get a traveler to the destination; routes are a subset of options to get the mobile traveler there In a hurry? You’ll take the efficient and direct interstate. Want to explore and learn? Your route will take you on back and scenic roads.
We wanted to learn just how mobile insurance executives took to the mobile road after their strategic plans were approved. Throughout Q4 2013, we talked to insurance executives in the US, UK, France, Italy, Israel, the Netherlands, and Turkey who were responsible for turning that mobile strategy into solutions that engaged with consumers and agents. Crafting a roadmap to guide the mobile journey, stood out as especially key because mobile initiatives are hampered if the execution teams fail to consider the myriad internal and external factors that impact delivery time lines.
One European carrier we spoke with put it best: “There’s lack of vision, a lack of focus, and too many people are playing around the edges. That’s giving mobile a bad name in terms of costing money and not giving any benefit for it. List out and create a road map, so you’re clear about what you’re focused on and why.”