Poor customer service will not only break a good reputation but also break the bank, according to data released by Accenture. The global management consulting company conducted a survey of 1,013 U.S. adults on their behaviors and attitudes toward insurance fraud between May 27 and June 3, 2010. The responses revealed that 55 percent of U.S. consumers say poor service from an insurance company is more likely to cause an individual to commit fraud against that company.
There has also been a significant increase in claims filed since a similar survey was conducted in 2003. The earlier survey reported that 29 percent of U.S. adults had filed P&C claims, but today's report indicates an increase in that number to 47 percent. That increase in claims filed, whether it includes fraudulent activity or not, has put pressure on insurers to find the solutions at the source of the issue.
“The potential increase in the likelihood of fraudulent claims is driven by both the consumer's desire to recover monies and as retaliation against poor service,” said Michael A. Costonis, executive director of Accenture's Insurance practice in North America. In fact, one-third of respondents said that those committing fraud do so in order to make up for the deductible they would have to pay.
For whatever reason fraud is committed, it is important to catch it, and just 72 percent of participants believe insurance companies are capable of identifying or preventing fraud today.
“This creates a significant challenge for insurers to examine every aspect of claim service delivery, including the way they review and analyze potentially fraudulent claims and the service touch points with their policyholders,” said Costonis. “Doing this correctly will help insurers stay competitive and attract and keep customers in this tough economic environment.”
Challenging as it may be, insurance companies need to find solutions to drive down the potential for losses, and the data shows it can start with customer service. While the survey suggests a reconsideration of the phrase “the customer is always right,” it also serves to shine a light on the power of great customer care.
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