How can I reduce my loss ratio?
This has to be the number one question all insurance professionals in the P&C space ask themselves. Every insurer’s primary goal is to reduce overhead costs and minimize claim expenses (and severity) while maximizing the amount of premium earned.
One of the most effective ways for P&C carriers to reduce their loss ratio is to stop the loss leakage during the claims process. This can happen in several ways, and that is what we are going to focus on in this article. There are two specific things that revolve around the claims process and how it can be improved. Let’s help you make it better by focusing on these two things:
1. Create a Faster Claim Process by Improving Technology
Brands like Amazon, Wayfair, and so many more have raised consumer expectations. Buyers now want different digital options that give them results faster and more efficiently. The days of having agency staff manually collect and input customer data can’t be the only option anymore. The first place to implement more digital features is during the claims process. Agencies need online portals & better system integrations for insureds to report claims, check on the status and make or receive payments. Many insurers lose money and clients during or after the claims process because they are still working off of older legacy systems or workflows that are not user-friendly.
In addition to making the claims process more efficient and faster, new technology can help you detect fraud. These types of systems will also give you and your staff robust data and reporting capabilities. Noodle Group specializes in the Insurance sector, offering integrated solutions to improve your company's and clients' overall experience.
2. Exceed Your Customers' Expectations
Though this may seem like it doesn’t need to be said, a loss ratio can be affected by your staff and the overall customer service. Did you know that 41% of insureds switch insurance companies within a year after submitting a claim?[1]
The experience a customer gets when submitting a claim is the moment of truth for your company. The experience they get during that process will determine their entire outlook. In today's service-deprived climate, there is a wonderful opportunity to improve your game and impact your retention rates.
Educate your staff so they are able to swiftly handle claims with the right tools in hand, and the right empathy to keep customers calm in what may be a very emotional time. Teach your staff to take the time to understand each pain point, and how your company can help make it better. Though it is ideal to help each insured quickly, be sure to spend adequate time with them so they feel they are valued and understood throughout the claims process. Current technology tools can help your staff effectively engage your claimants and produce wins for your company.
It’s Time for A Change
It’s time to upgrade your claims process by improving customer service and the technology your staff and customers interact with. Work with Noodle Group to identify key areas in your company’s claims journey where it makes sense to include improved digital and automation solutions. Get a custom, fully-integrated solution that works for your company.
[1]According to a study by Accenture
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