close

Welcome to Synpulse’s digital reading experience – Please choose your region of interest

The Magazine
Management. Expertise. Inspiration.

Date: 09/07/2019

Title: How Do Market Trends Influence Expectations for Claims?

Teaser: In a four-part series of articles, we present you with the results of our national survey on customer expectations in the event of a claim. This report deals in depth with changing customer expectations against the background of market developments.

Button: Read more

Image:

Customer Expectations in a Changed World

How do market trends influence expectations for claims?

In a four-part series of articles, we present you with the results of our national survey on customer expectations in the event of a claim. This report deals in depth with changing customer expectations against the background of market developments.

Authors: Adriana Mohap, Tanja Studer


Digitalization in the insurance sector

Digitalization and the associated changes in daily (consumer) behavior, particularly among younger customers, can be seen in the fact of being continuously available (‘always-on’), in rapid, personalized interaction, in immediate feedback in social media, and not least in online shopping as well. This trend is becoming ever more noticeable in the insurance industry: While around one-fourth of those aged under 50 take out insurance policies fully online (without advisers, ‘affinity with online’), only one-eighth of older customers do so. Other insured persons use an adviser in at least one place before taking out a policy (‘online-averse’).

graphic

Fig 1: Online affinity and age distribution

The loss event – a personal and emotional event

Despite continuing digitalization, personal contact carries enormous weight in the interaction in the event of a claim. This is because a loss is seen as an emotional experience whose high personal significance for the injured party is also implicitly transmitted to the insurer. In contact after a loss event, the customer must therefore be encountered with a high degree of empathy. Many customers thus expect a real contact person when filing a claim. The chatbots or personal digital assistants (PDAs) often used nowadays like Apple Siri and Google Assistant are not seen as an equivalent substitute. This preference for personal interaction exists across all age groups. Moreover, the majority of insurance customers are even prepared to pay a higher premium for personal contact.

graphic

Fig 2: Relevance of personal interaction in the event of a claim

Willingness to pay for speed and greater accommodation

How great is the willingness to pay for insurers’ other services? Are customers prepared to pay more for faster claims settlement? And is a more accommodating insurer likewise worth a higher premium to them?

Our study has shown that insurance customers are not prepared to pay a higher premium for a shorter processing time. However, they are willing to pay for greater accommodation when handling claims. Since (individually granted) greater accommodation generates costs that must not harm the collective body of insured persons, its controlled, targeted use is essential. It must be ensured that uniform goodwill rules exist and are followed, e.g. by means of data-based models and predictions as to which customer expects which goodwill in which case. The survey results suggest that the image of a ‘more accommodating’ insurer is more desirable than that of an ‘efficient and heartless’ company.

graphic

Fig 3: Willingness to pay for a faster claims settlement and more goodwilll

Data usage

Customer data is of great interest to insurers since comprehensive data helps them to optimize both risk assessment and claims processing, for example through automation. Accordingly, some insurers offer their customers various incentives for providing personal, health-related information (such as on physical activity or their sleeping behavior).

But how do matters stand with customer acceptance of this trade-off? Are insured persons prepared to release their data to the insurer for faster claims settlement?

More than 75% of insured persons would like to be told how their data is used. While most customers accept that they will have to provide personal data to use online services such as a customer portal, seven in ten insured persons are not prepared to disclose information from social media or geotracking data. The overwhelming concern here is that providing such information could be detrimental to them.

Here you get the full study

(German)

Download

Have we aroused your interest? Are you also interested in analyzing the expectations of your insurance customers in a changed environment in greater detail? We look forward to hearing from you.

Contact

graphic

Dr. Marco Fell

Title

Category | 01.12.2019

Title

Category | 01.12.2019

Title

Category | 01.12.2019
Cookies help us deliver our services. By using our services, you agree to our use of cookies. Find out more.
OK