When a vehicle is totaled, policyholders face more than just a financial loss. It often comes with significant emotional and even physical setbacks. Total loss events are inherently stressful and time-consuming due to the complex nature of the claims process. And with multiple vendors and touchpoints required to resolve the claim, disjoined communication, and process uncertainty can exacerbate an already nerve-racking experience for policyholders.
These factors create a perfect storm, leaving many policyholders feeling frustrated, sad, and angry as they grapple with the reality of their loss.
Clear and empathetic communication is critical for alleviating any negative emotions associated with total loss. Policyholders are more likely to feel supported and less stressed when carriers provide timely updates, answer questions thoroughly, and show genuine concern,
Hi Marley
The research reveals three key areas where an empathy-first approach from carriers can mitigate stress and improve the overall policyholder experience:
1) Answer questions before they arise to avoid frustration and confusion.
More than half of respondents (51%) in Hi Marley's survey cited that their most significant pain points in the total loss process stemmed from a lack of clarity throughout the claim, including not knowing the claim process or next steps, not understanding their responsibilities, or even who to work with or contact to resolve the claim.
Furthermore, more than half (55%) of respondents felt they could have been better informed of their claim's progress.
By proactively sharing key information and status updates even if the update is "no update." Carriers can address most questions before they arise. Supporting policyholders by keeping them informed can positively impact the claimant's emotional state during a tumultuous time.
2) Make sure policyholders feel heard.People who have just experienced a total loss want to connect with an empathetic person who truly understands their current stressful situation. They want to feel heard. Unfortunately, many of the surveyed policyholders had to repeatedly repeat basic information and details about their claim to several representatives, adding to their frustration.
In fact, 60% of those surveyed reported interacting with two or three people on their claim, and almost 50% had to repeat basic details of the incident between two and three times. Another 14% noted they had to repeat themselves more than four times.
Carriers can streamline communication channels to ensure policyholders only need to provide details once. Streamlined communication that captures all details in one place will also ensure all insurance professionals and relevant parties (salvage yards, repair shops, etc.) can access up-to-date information as the claim moves through each stage of the process.
3) Minimize delays where possible.
Automotive total loss claims have the lengthiest cycle time of all claim types and require multiple touchpoints. In fact, according to the survey, 40% of respondents said their time-to-resolution took a month or longer. These claimants were more likely to feel frustrated (68%), angry (37%), and confused (37%) compared to those who experienced a faster time-to-resolution. Also, due to the complex nature of these claims, more than 41% of respondents said they would have appreciated additional support or guidance during the total loss claims process.
Leveraging text messaging is a good place to start. Many carriers will deliver the news of a total loss determination with a phone call because the customer may have an emotional response. However, with the rise of robocalls and spam numbers, most people hesitate to answer a call from an unknown number, which can lead to phone tag and additional delays. Adjusters should always quickly follow that phone call with a text message. Doing so demonstrates a sense of understanding and urgency and helps ensure the customer has a point of contact and understands what's next and the steps they need to take to move the claim forward.
The human element remains paramount in total loss claims. Adjusters who take the time to explain the process, set clear expectations, advocate for policyholders, and provide ongoing support will help create a better experience for policyholders during a stressful situation.
