Strategic partnerships matter. That’s the message risk management has sent brokers and carriers in the J.D. Power and RIMS 2014 Large Commercial Insurance Report. In a webcast presentation, What Risk Professionals Need to Know for Setting Customer Satisfaction Expectations, JD Power’s Timothy Bebout and RIMS’ Carol Fox outlined the results of the survey. Most surprising — risk management was most satisfied with their current programs when their brokers and insurers work together.
The survey also revealed that insurers and brokers that limit customer-reported problems during renewal are rewarded with the highest customer satisfaction ratings. Conversely, even a small glitch in service can cause customer satisfaction ratings to drop dramatically.
Some of the key findings of the report:
- Price is the leading factor driving satisfaction among auto customers.
- Interaction is the second-most impactful factor driving overall customer satisfaction with insurers across product lines, accounting for nearly one-fourth of the overall model used in each of the product line indices.
- Claims frequency influences overall customer satisfaction levels. As the frequency of claims increases, customer satisfaction decreases. Claims satisfaction is lowest among workers’ compensation customers, among whom 94 percent have filed at least one claim with their current primary commercial insurer in the past 12 months.
- Flexibility in designing and implementing insurance programs is a KPI for which there is relatively low compliance at 56 percent for property and 50 percent for workers’ compensation. Overall satisfaction erodes by 138 points and 316 points respectively when this KPI is not met.
- Ensuring that an insurance representative, such as an engineer or underwriter, is involved during both the service interaction and claims processes are two KPIs that drive satisfaction among property customers. Overall satisfaction erodes by 100 points when an insurer is not involved during a service interaction.
- Providing at least two in-person interactions is another critical performance metric for brokers. Eighty-one percent of customers indicate they have had at least two in-person interactions with their broker. Overall satisfaction declines by 73 points among customers who didn’t have at least two in-person interactions.
A call to action for brokers and insurers came in the ERM area. ER managers are overall more dissatisfied with customer service than those who have not adopted an ERM framework. Bebout says with the variety of functions within the ERM area, fewer buyers of insurance means that there’s opportunity to educate and improve relations.
Fox says the findings shouldn’t be surprising. “As risk professionals, we’re asked to do more and in turn, we’ll be asking more of our brokers and insurers.”
To download the report, visit the RIMS Resources page.