Why Dialing in on Processes Can Unlock Lower Claims Costs

Claims costs are rising, driven by increased storm severity and frequency along with higher replacement costs. With premiums creeping upward, insureds are also more likely to shop for new policies; 41% of households reported shopping for insurance at least once in 2023. As a result, the need to balance policyholder experience with controlling claims costs is growing more urgent.

“Change orders, delays and unqualified contents restoration vendors can drive up costs and extend project timelines, especially when dissatisfied customers require mid-project vendor replacement,” says David Gavilanes, regional business coach at Blue Kangaroo Packoutz. “To reduce this risk, it’s helpful to partner with reliable vendors whose processes help claims run smoothly.”

Gavilanes and Michael Case, director of operations and regional business coach at Blue Kangaroo Packoutz, note that understanding how contents restoration processes impact claims costs and policyholder experience can help insurers build more trust while strengthening the bottom line.

Factors contributing to claim closure delays

When an insured and a contents restoration vendor aren’t on the same page, the situation can quickly turn chaotic — and expensive. Much of that chaos stems from communication or a lack of it. Policyholders can feel left in the dark about items that may be sentimental, the status of those items and when they’ll be returned. Replacing a vendor mid-project due to this dissatisfaction isn’t ideal and can even make the situation worse. 

“Once a new contractor steps in, all expectations set at the beginning are thrown out, and the likely result is customer satisfaction issues, which can be costly,” says Gavilanes.

Working with a company that specializes in contents restoration and has established processes around policyholder communication, setting expectations and following through consistently can solve many of these problems before they take root.

Improving predictability in the restoration process

During a loss, homeowners often face one of the most stressful situations in their lives, and predictability in restoring their contents is important for building trust that supports policy renewal.

“We have 70 franchises in 36 states covering over 130 million people,” says Case. “Every team has been trained in the exact same way around processes, from the first contact with the homeowner to packing out, cleaning, drying, storing and returning contents.”

Case explains how this standardization helps close claims faster and provides homeowners with the support they need to feel positive about the experience. “We restore belongings with the goal of bringing things back to a pre-loss condition, but we can restore more than just contents,” says Case. “We can bring a sense of stability by setting early expectations and communicating with our customers throughout the entire process.”

For more insights from the Blue Kangaroo Packoutz team of experts, click here.