Leverage Best Practices for Claim Operation Transformation
Harnessing Energy
Insurers stake their reputations and financial stability on the quality and efficiency of their claim operations. An outstanding claim experience can yield a lifelong customer and a cheerleader, while a process gone awry can lead to a policy termination and the ill will that goes with it.
The 2009 J.D. Power and Associates Auto Claims Satisfaction Study helps to quantify this impact. The study reported that, among customers whose insurers achieve high levels of satisfaction, 65 percent say they “definitely will” renew with their insurer, while only 43 percent of customers whose insurers have low satisfaction levels say the same. In addition, 57 percent of customers whose insurers achieve high levels of satisfaction say they “definitely will” recommend their insurer to others (the most powerful and cost-effective form of advertising), compared with only 35 percent of customers whose insurers have low satisfaction levels.
From an insurer’s perspective, efficient and effective claim management is as fundamental to customer retention as it is essential to profitability. For every dollar collected in premiums, insurers, on average, spend 61 cents on claims paid out and 13 cents on claim expenses. There are many factors that contribute to efficient and effective claim management, including productive adjusters and processors as well as the ability to optimize reserves and prevent fraud. Each of these factors has a definitive impact on an insurer’s bottom line.
Increasingly, insurers are focused on transforming their claim operations to achieve the seemingly diametrically opposed goals of elevating customer service while driving down the claims. While the process may seem overwhelming at the onset, a set of core “best” practices can lead the way to a new, more efficient and profitable business paradigm.
Article provided by by Randy Oaklief and Tom King (Web exclusive - Claims Mag.com) From a CDRG perspective, we're working at offering solutions and better practices for both our members and clients. Recently we've created a performance drying committee headed it up by Steve Lubnow from Lubnow Restorations. We're also working closely to provide better claims management solutions to our clients which we will be announcing in the coming months.
About CDRG;
CDRG's strength as a coast to coast Canadian Network of Independent Restoration Specialists is quickly becoming a force to be reckoned with 1726 restoration experts, an average of 18.8 years in business and 270 million in annual volume – it's safe to say our strength lies in our members. The rigorous CDRG selection process only awards memberships to those companies that meet the highest industry standards. All of our 150+ service locations are experienced and equipped to meet all challenges. No job is too big or too small for CDRG members.
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