How to get ahead of FAQs for a better insurance claim experience

Poor claims experiences drive customers to switch insurance carriers. In fact, Accenture's 2022 report found that 77% of claimants who reported being dissatisfied with their home and auto insurance claims handling experiences - representing up to $34 billion in premiums annually - said they had switched or were considering switching insurers.

One way for carriers to improve the claims experience and, in turn, boost retention is to anticipate and address customers' questions before they are ever asked. But what exactly are those most frequently asked questions? 

To find out, Hi Marley recently categorized a random sample of 1,040 auto and property claims in our database by the root cause of what drove a customer inquiry - revealing the most commonly asked questions and who they involve. The analysis showcases several clear opportunities for carriers to deliver better experiences by getting ahead of these inquiries: 

Better process explanation and expectation setting 

The top root cause for customer inquiries (31%) centered around the need for better process explanations. Therefore, if carriers effectively explain processes and set claim-handling expectations up front, they will experience far fewer questions later in the process. 

One of the most common inquiry categories that required further explanation included questions about the status of the claim (23%), with 10% specifically related to payment status. For example: "Is this on hold until October when the repair takes place? Just wondering as I have not received any transfer of funds." Additionally, 17% of these inquiries requested contact from the carrier. For example: "Can you please call me?"

Carriers can mitigate these requests with better process explanation and expectation setting in the beginning, which ultimately reduces the number of incoming and outgoing phone calls. 

Automation and standardization to help customers feel heard 

Customers need support and want to feel heard. In our analysis, 23% of the inquiries were not requests or questions, but comments that required acknowledgment of receipt or confirmation of information they sent to their claim handler. 

These types of requests appeared 244 times, resulting in 823 messages exchanged to resolve the inquiry. If carriers proactively acknowledge receipt before a customer asks, they could potentially save three messages per conversation on average. 

Carriers could also satisfy these requests, provide better support, and improve efficiency by implementing automated responses (of course, only if their core system is advanced enough to recognize a request type for confirmation of receipt). Configuring automated replies can remove a manual step for adjusters, create timelier responses and put the customers' minds at ease while making them feel supported. 

Perception of timeliness of service & resolution with regular status updates 

Again, managing expectations in claims is critical. J.D. Power's 2022 U.S. Claims Digital Experience Study found that when carriers fail to provide regular updates, customers are three times more likely to say the claims process was slower than expected. Conversely, customers who are provided with regular status updates via digital channels are two times more likely to say the process was quicker than expected.

Nearly 24% of all inquiries in our research related to a status update, so it's clear that there's ample opportunity to improve the customers' perception of cycle time and enhance the claims experience. Taking simple steps like setting reminders to reach out to customers and schedule regular, proactive updates - even if it's just an update that there is no progress - can play a big role in increasing satisfaction. 

This is especially important as the introduction of new technology like Advanced Driver-Assistance Systems (ADAS), combined with today's labor shortages, rising costs and supply chain issues continue to prolong cycle times and increase average severities. Offering proactive guidance will save time and reduce frustration in the end. 

While there's no way to predict when accidents will happen, it's possible (and critical) to anticipate and assist with customers' needs before issues arise. Getting ahead of the most frequently asked questions by providing better process explanations and setting clearer expectations will ultimately boost efficiency, save time, and drive an overall better claims experience for all parties involved.