The Reality and Opportunities in Claims Management

Consumer Experiences in the United Kingdom
by Catherine Stagg-Macey, June 21, 2012
EMEA

Abstract

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.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Erica Ferguson
eferguson@celent.com
Tel.: +1 617 262 8225

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

About this Report

 

Methodology

Key Research Findings

Experience and Expectations

 

Where the Customer Places Value

 

Customer Experiences

Interaction Preferences

 

Preferences by Age Group

 

Preferences Based on Claim Experience

Attitudes Towards Claims Fraud

 

Having the Cake and Eating It

The Moment of Truth

 

Customer Loyalty and Claims Experience

 

Reasons to Switch

Net Promoter Scores

 

An Overview of Net Promoter Score

 

NPS in UK Car Insurance Sector

The Opportunities

 

Tweak Claims Process

 

Balance Fraud and Speedy Payments

 

Claims Operational Excellence

Conclusion

Leveraging Celent’s Expertise

 

Support for Financial Institutions

 

Support for Vendors

Related Celent Research

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