Experience or Indemnification – What’s your Claims Focus

Claims - That Moment of Truth for the Policy Holders. Everyone has said it multiple times, that we have to be faster, easier, better, in settling Claims & serving Customers, etc, etc...

First thing first: have we ever thought about how the customer views claims from their side?

Do you think the Policyholders care for how we manage our Insurance business? How we set up claims, reserves, manage our vendors etc, tie up with reinsurers, how you slice/dice data to determine fraud, how you solicit support from partners....??

Let's start with a story - An experience, as shared by one of the Top Leaders from the Industry (yes, from the Insurance Industry), as a customer with a Company, for his "Motor Insurance Claim" in his words....

"I had my bike stolen once. I submitted the claim to the Company, and they told it takes about two weeks, before I am refunded. I was fine with it - my expectations were not high! I could have bought a new bike - however I decided to wait. There was just this one question that I asked though - why two weeks? The response from the Company was for them "to ensure that the stolen vehicle doesn't get found and can't be repaired" before releasing the money! And that triggered a lot of questions, in my mind:

• How many bikes generally get found, when lost? Why can't the Company just pay me the money right away? If the vehicle is found, they can sell from their side and do the internal adjustments
• Is there an empathy or suspicion, in their process?
• What have I insured? Is it the Vehicle or Is it the "TRANSPORTATION"? Even if I get the money in two weeks, I am still compromised on my 'TRANSPORTATION"
• ...."

Then, he made a classic statement - "We are not tuned to what it is we are selling". Delay in refunding the money just extended my transportation need. It may be the case with every other claimant - their need may be different from mine

And that was the trigger for this week's insight - What exactly does customer centricity mean, for our Business, our Products and Services? Is it all about faster, better, cheaper, availability, accessibility etc... or is it much beyond that as in "accumulation/collection of emotionally gratifying experiences" - than just plain indemnity, with the bells & whistles?

In that bike story, if you were to pick up one response from the following, which one do you pick up?

• We are sorry to see your bike stolen. Please contact our customer service tollfree number and they will guide you on the process
• I am sorry to see your bike stolen. Please reach out to our customer service executive. If he is not available, here is my number. Contact me immediately and I will see what I can do for you
• No problem at all. We are sending two of our employees to your home, with two bikes. Please pick up one and continue with your routine. We will figure out on what needs to be done for identification/repair/refund of money
• How are you going to work today? Would you like us to send a taxi now immediately? We can rent another bike for you, for the next two weeks, and get it delivered to your address

Pick up your response as an Insurance Executive and as a Customer. If there is no difference, possible that you are there (which is wonderful - a big, big pat on the back!) or your expectation as a customer is low. If there is a difference, it's time to take a step back and re-examine ourselves, to see where we are, with those fresh set of eyes, for re-invention, around customer experiences.

So, where should we start? How about starting with understanding what customer is insuring for, in terms of that need, across the entire life cycle - as in Transportation, in our story? Around those unexpressed/unperceived needs & expectations of the customers, for what is lost/damaged/impacted?

That's the thought trigger for you, for this week. While you are in musings, we are putting together our next episode around experience centric Biz Models, Processes, People and Technology etc. Stay tuned!

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