A study from cloud service provider CCC Intelligent Solutions Inc., examining 47 moments in the auto claims and repair process, has uncovered a number of notable findings, among them that high customer satisfaction scores are not a good predictor of whether or not a client is going to switch carriers. It also finds that customer satisfaction with insurers and repairers in a claims experience is closely linked.
“Their collaboration plays a pivotal role in each other’s satisfaction scores. The findings also indicate that satisfaction with the claims process may not impact insurer loyalty,” they write.
The study, Moments of Truth: Customer satisfaction and retention in the auto insurance claims and repair journey, based on work with 2,400 policyholders, found that repairers’ actions help insurers score satisfaction points, while insurers can bolster their repair satisfaction scores with clear communications about the claims process and a satisfying first contact with the consumer.
Interactions with insurers and repairers
“These insights suggest that many consumers view their interactions with insurers and repairers as a single, cohesive experience and do not differentiate between their experiences with insurers and repairers.” The findings include that 42.5 per cent of consumers surveyed reported that their interaction with the repair facility changed their perception of the insurer.
The study looks at transparency, speed, communication frequency and whether or not returning deductibles affects loyalty (it does not, except perhaps among lower income insureds), among other things, but some of the most notable findings are those highlighting factors that were most likely to indicate that a client would switch carriers following an accident.
These include the ability to cover a loan gap in a total loss situation – policyholders who owed more on their loan than what their vehicle was worth in a total loss scenario were more likely to switch insurers. Those involved in an accident which caused injury were more likely to switch insurers, and finally, first-time filers, despite being more likely to report higher satisfaction scores, were also more likely to switch carriers.
“When all three are present, there is greater than a three times increase in the likelihood of the policyholder leaving the carrier,” they write. “Most of the moments that helped a carrier achieve a positive customer satisfaction score were relatively statistically insignificant in helping to determine carrier defection.”
