The Reality and Opportunities in Claims Management

Poor claims experience will drive customers away at renewal.

Most adults in the United Kingdom have some form of insurance. But it is a grudge purchase, bought to insure against the possibility of something unfortunate happening. The real test of the value of insurance for the consumer is at the point of claim. How do insurers fare at this?

In a new report, The Reality and Opportunities in Claims Management: Consumer Experiences in the United Kingdom, Celent provides a detailed view on what customers expect and have experienced based on primary research into UK customer experiences in making claims with their insurers. This report looks at what is important during the claim process, views on fraud, preferred interaction methods, and customer loyalty. It will also provide Celent's views on investment priorities to improve this experience.

“Customers are clear that they want to be paid what they claimed for,” says Catherine Stagg-Macey, Senior Vice President with Celent’s Insurance group and author of the report. “But what’s intriguing is that many view inflating claims as acceptable behaviour. This creates a dilemma for the insurer—how to trade the speed and value of settlement against customer expectations and satisfaction.“

The UK has an uneasy balance between claimant experience and the efficiency and effectiveness of the claims process. Celent suggests that there are inexpensive ways to improve the customer experience, but customer experience alone is unlikely to positively influence customer loyalty.

The report concludes by discussing investment in claim excellence, where the focus is on broader operational and financial performance targets.