Those of us in the insurance business are also consumers of the products we distribute. On occasion, we experience a loss of some kind and have to file a claim. Of course, this is why we bought insurance in the first place—to transfer the risk of financial losses that we otherwise do not want to absorb.
Agents and brokers make choices that determine what type of claim service their clients will receive during a disaster, and this choice becomes an important part of an agency's strategic plan. As independent agents make decisions about which carriers to represent, it is important to contemplate the claim servicing capabilities of their insurers.
In the aftermath of widespread catastrophes, the claims infrastructure at some insurance companies can buckle. Putting aggrieved people on a long queue to make a claim, speak to an adjuster or receive payment is no way to treat these customers, but the carriers' resources are strained to the limit.
Keith McCombs, director of personal insurance at INSURICA Insurance Management Network, lives and works in Oklahoma City, so he knows about catastrophe claims. “When disasters happen, many insurers simply say 'pick a number and get in line,'” he says. “That's the last thing anyone wants to hear at a time of great stress and need.”
Yet the problem persists, accumulating into negative publicity for the entire industry. McCombs says that many carriers, particularly newer ones without adequate resources, are to blame. “They have to rely on external, independent adjusters when a disaster hits,” he says. “Sometimes these adjusters lack empathy—it's simply a business to them. They set up these command posts in the affected area and it's like a zoo—pandemonium everywhere you look. It's all very confusing to policyholders, who are in an emotional bind and need help and money.”
Command posts and mobile claim operations may sound responsive, but insurers that take this approach ask customers to come to them instead of sending resources to the customers. “This is just the beginning of the nightmare,” McCombs says. “Due to the deluge of claims, some claims take over a year to adjust. You can't imagine the anxiety it all produces.”
Required Re-Assessment
Some insurers send claims professionals from across the country to pitch in when a catastrophe strikes. They are trained to handle catastrophe claims.
Even if a carrier uses independent adjusters, internal staff adjusters oversee their work, making the decisions and confirming that all claims are investigated, processed and paid. Without these professionals, the claims process suffers—to the detriment of the policyholder.
Bad experiences have a way of lingering and can deeply and profoundly affect customer loyalty. Our customers deserve empathy, promptness, fairness and technical expertise when they need to file a claim. These services should be as fundamental as answering the phone.
Alternatively, call center personnel can recognize the situation and, when a policyholder calls, treat them with respect and provide access to an experienced adjuster who can answer questions and offer service at the time of the loss instead of the next business day. That claimant is a customer for life.
Agents and brokers want to know that their vital accounts are protected. It's what we would expect were we to file a claim. As McCombs says, “You only know the value of insurance when you have a claim.”
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