Choosing the Right Communication Channel When Interacting with Policyholders

An insured has a car accident. Do they describe it as a fender-bender or a total loss? Another policyholder reports property damage to their home. Was it a flooded basement, or did a tree fall on their porch and snap the railing? All claims are unique. Therefore, claims communication will likely need to be multi-channel in nature.

A good rule of thumb for communicating based on policyholder needs is to consider the potential for complexity, claim severity and the need for empathetic connection.

When interacting with policyholders, the key to choosing the right communication channel is to use the method that fits the message’s intent and content while also considering the end customer’s preferences.

Balancing Communication Modes in the Claims Process

So, when does it make sense to use SMS versus other communication channels in the claim process? Take a simple claim, for example, like insured auto A hits unoccupied parked auto B with no injuries. Since liability is clearly on the insured and there is little risk of increasing complexity or severity, the insurer could handle most of this communication via text after the introductory phone call to establish a relationship. It’s straightforward. In this scenario, the insured and claimant just want to know what they need to do to help resolve the claim, and they want to know when and how it will be resolved.

In this situation, you can use text messaging to:

• Introduce yourself with your contact and claim number information. “Hi Ashley, this is Brianna Smith at ABC Insurance. Here’s your claim number. You can reach me at this number by phone or text.”
• Ask for and receive documentation. “Could you text me photos of the car damage today?”
• Set expectations around documentation requirements. “We’ll need to get the estimate from our direct repair shop. It should be ready by end of day tomorrow. I’ll get back to you as soon as I have it.”
• Schedule a time to talk or for an onsite visit. “I need to come to your house and inspect the roof damage. Can we do that Monday at 2:00 PM?”
• Offer service vendors’ contacts for restorative services. “We’ll be using Roger’s Roofing for the tarp and temporary repairs. You can call or text Roger at xxx-xxx-xxxx.”
• Reach out for simple clarifications or to follow up on documentation. “Hi, just checking in. Do you have any questions about the claims process and how we are proceeding?”
• Share good news with the policyholder. “Your rental car reservation is all set.”
• Confirmation that payment has been processed. “Payment has been issued and you should receive the check within three to five days.”
• Updates on status, especially for more complex claims. “Hi Ashley, thanks for your patience. I wanted to let you know where things are with the supplemental estimate for your fire damage.”

Now let’s change the scenario. Insured auto A runs into auto B and injures an occupant of auto B. The claimant must go to a doctor, get an MRI and have cervical spine surgery. While there are some elements of this kind of claim where you could use text, there is more complexity and a greater need to connect sympathetically.

In this case, the substantive discussions would likely be better conducted via phone or video.

Other examples of where it may be better to use phone or video:

• Provide an overview or detailed explanation of the claims process
• Demonstrate concern due to serious situation or deteriorating customer relationship
• Discuss liability, damage and coverage issues or disputes
• Review settlement documentation with the insured customer
• Initial or subsequent loss facts or damages investigations
• Negotiate claim settlements
• Communicate denials and their basis
• Follow-up questions and conversations where details need to be teased out

How Text Messaging Makes Life Easier for Everyone

People have intuitively learned when it’s better to email, text or have a phone conversation. With the rise of robocalls, most people won’t answer a phone call from an unfamiliar number. But 90 percent of texts are read within three minutes of receiving, and the average person responds to a text within 90 seconds. In fact, text response rates are 295 percent higher than phone call response rates.

That said, the insurance industry hasn’t always done a stellar job setting proper claims expectations or keeping policyholders informed throughout their claim experience. This causes unnecessary stress for both the policyholder and claims staff.

Here’s a classic example. After speaking to the policyholder initially, the adjuster sets the expectation that the estimate will be finalized by day’s end Tuesday. Three days go by without a word. On Friday evening, over drinks, the policyholder’s friend asks how things are coming with the accident. “The guy said he’d get back to me by Tuesday, but I haven’t heard a thing.” “Hmmn,” says the friend, “Maybe you should talk to a lawyer. I know someone good.” The reality is the claims adjuster was juggling so much that they failed to get back to the claimant with an update.

Let’s replay the scenario using text messaging. The claimant is waiting to hear from the claims adjuster. But behind the scenes, there is a delay in completing the appraisal. The claims adjuster texts the policyholder on Tuesday, saying, “I’m sorry. The appraisal got delayed. I’ll have it for you Thursday by end of day.” Quick, simple, informative. No need to make a phone call the policyholder will not answer or leave a voicemail they may not check.

For claims staff, every day is filled with a cascading series of tasks that each create their own unique stressors. Phone calls are a big part of the day, not just calling or answering, but chasing after calls that aren’t returned, trying to reach people and getting the critical information needed to determine liability or validate damages. Often claims adjusters are working with antiquated systems or multiple apps that don’t communicate well. All of this creates stress. Text messaging can alleviate some of this, freeing time for staff to focus on the claims that need critical thinking and extra attention.

The Bottom Line: Happier Customers, Higher Quality Outcomes, Less Stress

Today’s policyholders want quick and convenient communication using multiple channels, like phone, email and text. They also want to decide when, how and how much to communicate via these different channels. For insurance carriers, this means creating an omnichannel experience that meets the variety of their customers’ needs and communication preferences.

Offering a variety of communication capabilities will satisfy policyholders with fast and convenient communication that they prefer. It also enables carriers to create higher quality claims outcomes, better policyholder experiences and improved customer retention.

Learn more about how Hi Marley improves communication and increases process efficiency, by emailing me at [email protected]!