Could Direct Claims Reporting Be Improved?

J.D. Power & Associates has noted a general high level of insurance policyholder satisfaction with the claims process in its last few homeowner and auto insurance surveys. However, the latest Property Claims Satisfaction Study registered a drop in "satisfaction with the service interaction process," according to the company.

J.D. Power attributes the nine percent drop to "the continuing trend of homeowners filing their claim via direct channels--typically online or by calling a call center--rather than through an agent." In fact, the survey found that 68% of customers filed their most recent homeowner's claims through direct channels, an 11% increase from 2012. Further, 72% who filed with an agent say their agent helped put them at ease, compared to 56% saying the same about the call center.

"For the industry average, the call center experience fails to deliver the same level of service as an agent," said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates, in a statement. "Especially during times of hardship when someone's house has been destroyed or their valuable possessions have been lost, it's difficult for a call center representative to replicate the personal relationship customers get with an agent."

But as the industry transitions toward more self-service for claims, distribution, and other business processes, companies can learn much from the best practices of writers that grew up direct, Bowler adds.

"The industry is definitely shifting toward direct channels," he says. "As that shift continues, the key for insurance companies is to ensure their call center representatives are fully trained to provide the claims experience their customers have come to expect. High customer satisfaction can be achieved through call centers, because some of the insurance companies that have the highest overall satisfaction in the study are direct providers, including Amica Mutual, this year's highest-ranked insurer."

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio