The claims process… when it gets personal
A topic we often write about in both the FAnews magazine and our newsletters is the issue around claims handling and the fact that clients often ‘judge’ the industry based on their claims experience. We talk about and write about this over and over; and we pride ourselves in the fact that the only thing differentiating one insurer from another on personal lines products is the service we give to our clients and brokers. And that is why we strive for service excellence… or not?
And then I had a claim...
On a Friday morning, two weeks ago, two of us pulled away at the same time at a four-way stop and we collided… it’s called an accident. Both of us are insured, and I have a reputable broker, so I know I do not have to worry about anything because I have insurance and I have a broker who will sort out my life. Knowing how the process works I pre-empt the situation and get three quotes to hand in with the claim form.
A week after we have submitted the claim form, there is still no word from the broker or the insurer and after a follow-up phone call to our brokers they inform us that the autobody repairer was informed to start with the process on their side. The autobody repairer had no idea and visited us for a second round of photos to submit to our insurer.
Why a second round after photos were taken for quoting purposes? Surely this is a duplication of work? And who pays for this… probably the insurer? Is this how it works?
Another few days
The autobody repairer confirms that approval will probably take another four days… because they battle a bit with this specific insurer in terms of approvals. He mentions that they are very slow…
My brain is in overdrive and my emotions are taking over because for two weeks I have been driving around in a car with a ‘badly bruised bumper’ (and a FA NEWS * GP number plate) because my broker and my insurer just do not care about me. This is the message I get based on the fact that there is absolutely no rush to sort out my claim. I know a lot of brokers and advisers, and I know this is not the norm so why is this happening? When I enquire with my broker I am advised that insurer x and insurer x are very slow. So, if you know this why am insured with the largest insurer in SA who is the slowest? Or does it simply mean being the largest gives them the right to take their time?
Industry advocate
I am proud of this industry we work in because we change lives, we are there to makes people’s lives better and put them back in the position they were in before the accident or incident happened as soon as possible… but this experience has really opened my eyes.
Yes, most brokers and advisers fight the fights for their clients and pride themselves in their claims handling process – it happens fast. Yes, you do get insurers who prioritise each claim because the client is just that important to them. And yes, I have many contacts who would have sorted out my claim within a day, I know that… but I wanted to have another good story to tell about my claims experience and why I love this industry without using my contact… and now I can’t.
After two weeks I am still driving around with my ‘badly bruised bumper’ and my FA News*GP number plate… because the claim was not approved after the four days. Do understand that there is no funny business with this claim; it’s straight forward…
Question time
I am keen to know how exactly the claims process works and when is a claim a priority or just another claimant who can fall in line to hear from us when we are ready. I am keen to know how ‘pushy’ my broker is supposed to be with a claim that is ‘just another claim’ and I am keen to know what the normal turnaround time of a straight forward bumper replacement claim is.
And then we are talking about technology and how it might speed up the whole claims experience… I think it’s time to go back to the drawing board.
Editor’s thoughts:
The benefits of having a broker vs going direct far outweighs each other. That is a given, but the broker can only be as good as the insurer allows them to be? Do you believe that your brokerage gets the best service from the insurers you place business with? Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts.
Comments
The panel beater, RARC, did a fantastic job and there is definitely a reason why they are a platinum status panel beater... the service, promptness and way of communication to keep you in the loop, is next level.
Thank you all... hopefully lessons were learnt by all.
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Having read about your experience with regards to claims service in yesterday’s news letter, I would comment that this is one of the areas where a properly managed Binder facility is of great benefit to the consumer.
I’m not sure how other brokers with Binders operate or what their process is, but we have been given the authority and the flexibility by our main Insurers to really cut down on the unnecessary procedures and sign-offs which the big corporate claims departments seem to require. The result is that we can have the vehicle assessed and authorised and repairs started within a couple of days - Obvious benefits to the consumer and the reputation/image of the industry, but also reduced car hire/storage costs for insurer etc.
Claims service is an area where we really try to maximise our competitive advantage over the larger players. Where possible on small/straightforward theft/lightning etc type losses, we strive to have the claim settled within 24 hours. That is not something that could be expected of the bigger guys.
Hope this is of interest and we hope the benefits of Well managed binder facilities do not escape the FSB, although I must say that from the latest RDR implementations it is apparent that these benefits are being appreciated, even if somewhat grudgingly!
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I do not agree that the broker is only as good as the insurer allows, It is the brokers job to ensure that the service provided is what is promised.
Sadly what I see ( I get asked to help far too many people) is poor service ethics at the brokers and ( I hate to say this) claims staff at both brokers and insurers who have no interest in providing good service and often seem to lack even the basic knowledge of their product.
In an earlier life I was a broker, if we got poor service we had a chat and if that did not work we complained to senior management. We expected and demanded good service..
I suspect that the lack of complaints made at the right level often leads to Insurers being unaware of the problem.
One very clear problem is lack of skill at loss adjustors and assessors. It is totally unacceptable to allow unqualified persons to act in such a capacity and far too many have no qualifications at all. I cannot see that using persons or firms that are not members of the relevant association (unless they are in-house) can be seen as remotely complying with TCF. One mind boggling comment recently, “I have not seen the policy but they all provide the same cover”
We need to re-establish the concept of a service industry with suitably qualified staff. Report Abuse
Name and shame I say. - even with the Ombud whose role is to look after the interests of policyholders whom should be made aware of the service criteria of the various risk carriers. Report Abuse
Daarvoor is ons Makelaars en dit is ons plig om die kliente te plaas waar daar diens is.
Almal van ons weet watter versekraar gee goeie en eenvoudige slegte diens.
Tree in belang van die klient op en plaas sy polis waar daar diens is.
Raak meer betrokke by jou / julle besigheid se eise en daar sal 'n verskil kom.
Die direkte verskeraars se model in daarop gebou om baie goeie diens te gee , hoe die eise uitbetaal is 'n ander saak. Daarom groei hulle mark aandeel daagliks , want hulle is altyd beskikbaar en werk vining. Report Abuse
Dis met hartseer en frustrasie dat ek jou epos lees, want in die laaste 3 weke is ons as makelaars moedeloos gesukkel met versekeraars en die absolute “shrug my shoulders, don’t care” houding waarmee ons klagtes, versoeke, pyne hanteer word. En ons as makelaars sit magteloos en toekyk hoe ons kliënte oorstap na direkte versekeraars want ongelukkig reflekteer swak eise diens nie so seer op die versekeraars nie, maar ons as makelaar waarmee die kliënt ‘n “persoonlike verhouding” het en nie net ‘n nommer is nie. En dit is by die meeste versekeraars deur die bank.
Ek besef met ‘n skok in watter situasie ons is toe ‘n bestuurder by sekere versekeraar my meedeel “gelukkig het ek net nog 8 jaar in die bedryf en dan is ek klaar”…!! Ek het nog 25 jaar in die bedryf oor, maar ek sak my kop deesdae in skaamte en is te bang om eers te noem dat ek in die bedryf is, want oral hoor jy net mense se riller stories. En die rede??? Want elke party in hierdie bedryf “werk vir homself” en kyk na sy eie belange!? Dis nie bedryf waarop ek trots was en dit vir my geen groter vreugde verskaf het as om my kliënt gelukkig te sien en tevrede met sy versekering nie. En alles word voor die deur gelê van stelsels of prosesse wat veronderstel is om dit vir die kliënt makliker te maak, maar wat geensins die doel bereik nie.
Ek kan op hierdie stadium ‘n boek vol skryf van die klagtes en verskonings, en soos tereg genoem – op die einde trek die kliënt aan die kortste ent!! En die makelaar…?? ‘n Spesie wat besig is om vinnig uit te sterf!!
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And then, once they have absorbed these new requirements, they should then carefully read Rule 18: Complaints Management. Complaints now include "any expression of dissatisfaction . . ."
A big shake-up coming, methinks. Report Abuse
The comments from Peter and Peter, combined with a heap of emails from industry people made me realise that we have a much bigger problem that what I thought...
Let's see what we can do.
Let me know if you have suggestions.
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And then the industry talks about being client-centric, why then are stories like this (and there are certainly many others) even making the rounds?
Thank you Editor for raising this- a bigger conversation needs to be had about why reaching a certain size and standing in the industry means that some Insurers can get away with such treatment of their clients, and it is well known as illustrated by the entire value chain conceding that "that is just how they are" Report Abuse
Modern technology could reduce this to 10 minutes.
It is all about an attitude to work and a willingness to get things done that is the issue.
South Africa needs to be de rusted and start working again. It can be done. Report Abuse