New Survey Highlights Emotional Toll of Auto Total Loss Claims on Policyholders
Survey Finds Communication Crucial in Reducing Stress and Improving Satisfaction During Claims Process
Boston, MA – December 10, 2024 – A new survey of US policyholders who have had a car declared a total loss found that how carriers communicate with policyholders significantly impacts their emotional state and overall satisfaction with their insurance carrier. Auto total loss events are inherently stressful and time-consuming, with 49 percent reporting feeling frustrated and sad when they learned their vehicle was totaled. Then, as the insured navigated through the claim process, more than half (55 percent) of respondents felt they could have been better informed of their claim’s progress.
Further complicating the process, 60 percent of those surveyed reported interacting with two or three people on their claim, and almost 50 percent had to repeat basic details of the incident between two and three times. Fourteen percent noted they had to repeat themselves more than four times.
Hi Marley, an SMS-driven conversational platform built for P&C insurance, commissioned the survey to examine policyholders’ experience and sentiment around total loss claims. Hi Marley surveyed 800 policyholders nationwide who had reported a total loss claim in the past three years. The survey prompted respondents to provide information about their recent experience filing an insurance claim, including the need for support as they navigated the complex and emotional journey of total auto loss.
The survey revealed an essential takeaway for carriers: more than half of respondents cited their most significant pain points had to do with a lack of understanding and clarity throughout the claim, including not knowing the claim status (11 percent), process, responsibilities, or next steps (27 percent), or even knowing who to work with or speak to (13 percent). These results highlight communication breakdowns and showcase how carriers can leverage asynchronous single-thread communications throughout the total loss process to drive clarity and keep the policyholder informed while improving the customer experience and reducing total lost cycle time.
Balancing cost containment with improved customer experience is a longstanding challenge for P&C insurers. The challenge is magnified in auto total loss, which traditionally has the lengthiest cycle time of all claim types and requires multiple touchpoints with policyholders who may be distressed during the process. In fact, according to Hi Marley’s survey, 40 percent of respondents said their time-to-resolution took a month or longer. These claimants were more likely to experience frustration (68 percent), anger (37 percent), and confusion (37 percent) compared to those who saw faster time-to-resolution. Also, due to the complex nature of these claims, more than 41 percent of respondents said they would have appreciated additional support or guidance during the total loss claims process.
“We understand the complexities that contribute to the time it takes for carriers to resolve a total loss claim, but this survey highlights the importance of an empathy-first approach throughout the process, especially when claims take longer than expected,” said Hugh Allen, Principal Product Strategist at Hi Marley. “This presents an opportunity for carriers to streamline communication channels and improve efficiencies. Keeping customers informed and supported positively impacts the claimant’s emotional state during a tumultuous time.”
Earlier this year, Hi Marley, in collaboration with Copart, Inc., released Total Loss Assist to address these pain points for policyholders and offer benefits such as:
- One trusted, unified conversation thread between the policyholder and other relevant parties.
- Automated workflows that guide the policyholder through their auto total loss process and set expectations about next steps.
- Real-time customized notifications from Copart to adjusters in Hi Marley for clear, next actions.
- Personalized, automated text messages through Hi Marley to customers based on Copart alert triggers.
- Increased automation in key areas of the total loss process.
For more information about Hi Marley’s Total Loss Assist, visit https://www.himarley.com/totalloss.
About Hi Marley
Hi Marley is the first intelligent conversational platform built for P&C insurance and powered by SMS. Designed by insurance professionals, Hi Marley enables lovable, convenient conversations across the entire ecosystem, saving carriers money and time while building customer loyalty through delightful interactions. Hi Marley’s industry-leading collaboration, coaching, and analytics capabilities deliver crucial insights that streamline carrier operations while enabling a frictionless customer engagement experience. The solution is made for the enterprise; it’s fast to deploy, easy to use, and seamlessly integrates with core insurance systems. Through its advanced conversational technology, Hi Marley reduces friction and empowers innovative carriers to reinvent the customer and employee experience. Learn more at www.himarley.com.
