11 June 2018 07:00
Photo : Freepik
In damage insurance, the compensation remains the crucial stage of the client relationship. The management of the disaster determines the degree of satisfaction that the customer shall grant to his or her insurer.
However, the industry faces a crisis of confidence of the public in this regard. It is necessary to adjust, agree experts and insurers gathered at the Day of damage insurance. The industry must improve the customer experience, has been recognized by the experts who have testified to this effect. Bernard Deschamps, CEO of the Mutual of Quebec municipalities (MMQ), moderated the debate. From the outset of the game, he stressed that it was necessary for the industry to maintain the delicate balance between managing costs and its promise of peace of mind made to the customer.
«Because of its quasi-compulsory, the insurance has become a necessary evil for the vast majority of our customers. Our greatest challenge is to transform this perception by doing better to promote our added value to customers «, he said.
Mr. Deschamps pointed out that the insurance industry of damage is very good. Even if the natural disasters of recent years have cost 130 billion dollars (G$) in compensation, the available capital is still at its highest level.
«Overall, the consumer trusts us to 65 percent,» he says, listing a few observations of the Index of confidence of the Chamber of damage insurance, where we measure the factors that influence the level of consumer confidence in the industry.
Some 49 % of respondents said they hesitate to make a claim to their insurer for fear of increasing their bonus. They were as likely (39 %) to emphasize the subjective and random in the processing of compensation claims. The long delays and the complexity of the compensation process, are also beset by 42 % of respondents.
Crisis of confidence
Mr. Smith concludes from these results that there is a crisis of confidence in the industry. According to him, the compensation procedures are not unrelated to the degree of cynicism shown by the consumers.
Some insurers consider the step of the compensation as a simple expense item, and do everything they can to reduce the cost of the allowances, has launched Mr. Deschamps. The regulations are heavily traded and franchises rigorously applied. Then, the insurers are putting pressure on suppliers to reduce prices.
In doing so, they hurt the reputation of their industry and open the door to new competitors, » said Mr. Deschamps. Many sectors have already been victims of the emergence of new players from the digital era : taxi, hotel, music, movies and entertainment, and retail are just a few.
In all cases, even if the upheavals that affect these sectors are derived from multiple sources, a common point unites them, «said Mr. Deschamps» Their main asset, became a liability the more important. «
The insurance industry of damages must think about it before you see consumers migrate to new models, said Mr. Deschamps. «The players emerging are capitalizing precisely on our weaknesses,» he says, citing the example of Lemonade, which operates two : the lack of confidence of consumers and the obsolescence of the technology used by traditional insurers.
Lemonade provides cover without deductible, and the entire customer experience is based on artificial intelligence. The third party claims is managed in real time by a robot and the amount of the compensation is paid in a few seconds. Lemonade claims to have served 170 000 clients to date.
Insurance : a necessity…like the dentist
Bruno Guglielminetti, independent consultant and popularizer of digital domain, has been invited to play the role of the consumer at the panel. He endorsed the remarks of the facilitator. «You are unfortunately a necessary evil. It takes, insurance. There is also the need of the dentist. «
The perceptions of the industry are well cemented in the minds of consumers, he added. Customers expect a firm footing in the interim, as we see in real estate brokerage, he recalled.
Many insurers have taken the digital shift and to facilitate the handling of the claim by the insured persons themselves, which, according to him, restores the level of confidence. Each time a new tool is proposed, the impacts are positive. Consumers are asking for more, citing to this effect a survey of the ORGANIZATION on the perception of policyholders in relation to the digital.
Mr. Guglielminetti has reported to have placed orders for digital assistants, Google and Amazon that it has. Neither has been able to suggest some references quebec home or auto insurance. However, young consumers are particularly fond of digital platforms. «They are autonomous and capable of search by themselves. «
Once the insurance has been taken out of the simple way, the consumer expects the process of claim fast and without a hitch. Himself having recently experienced a car accident, he stresses, have been taken by the hand by the representative of the insurer. Once the complaint has been submitted, the communication continued by e-mail and e-mail, in order to follow online the evolution of the repair of his vehicle by the supplier.
Considering this aspect disregarded, Bruno Guglielminetti estimated that insurers would have the advantage to make the customer experience during the settlement of a claim. The client knows that it must pay a premium to cover his risk, but he wants to know what will be the insurer for him when he will need to apply this warranty, » he concludes.
What insurers think of it
Two insurers participated in the panel. They confirmed the lack of perception between the industry and the consumer.
Michel Laurin, president and chief operating officer ofiA Auto and home, has pointed out that, like many, he came up in insurance by accident. «When I was seven years old, my dream was not to work in insurance. I’m there because I was good in mathematics and I am qualified as an actuary. «
He quickly found that the insurance was a stimulating environment. However, in his family, the relatives took advantage of his professional status to make him share stories of horror lived during a claim.
«We have taken the customer for granted, because it is. It does not have the choice to ensure, at least for his car. This is a mandatory service. We have earned our bad reputation «, he said. To his arrival at ai in 2002, he said he had been surprised to find that the director of the claims department receives a bonus based on the rate of loss. «It is probably still like that in some organizations,» he says.
Some 70 % of the revenues of the insurers are paid in compensation. Every dollar saved in claims management is important. This should not come at the expense of customer satisfaction, said Mr. Laurin.
«We have had bad reflexes in the past. «Mr. Laurin for example, the processing in 1996 of the high number of claims for swimming pools damaged by the numerous episodes of freezing and thawing. The following year, the insurers have decided to no longer cover the pools installed for over ten years. «This is how we said thank you to the customer who had not made a claim, while its neighbor could have a new pool. «
Now, the management of claims must be centered on the point of view of the consumer. «The disaster is an important event for the insured. It does not need to experience a second trauma at the time of the claim, » said Mr. Laurin.
For his part, Denis Dubois, president and chief operating officer of Desjardins general insurance Group (DGIG), confirms that the compensation procedures are subject to a major revision in a decade. A committee of the insurance Bureau of Canada thinks including the intention of the contract in respect of the application of exclusions, he recalled
The intelligence tools analytics can improve now the detection of fraud. This facilitates the work of claims adjusters who are able to focus their intervention on the cover. «Management of costs is not incompatible with customer experience,» says Mr. Dubois.
He cited the example of the survey conducted by Aviva Canada , who was able to uncover a fraud scheme to the auto insurer in Ontario through industry suppliers. «Our customers witnessed these abuses do not like this. They are well aware that the fraud has an impact on premiums, » said Mr. Dubois.