Encouraging loyalty from policyholders

It is not an understatement to say that retaining policyholders in the wider insurance industry can sometimes be a struggle. In the increasingly competitive market, consumers commonly search through comparison sites in order to find the lowest premium and excess costs, rather than renewing a policy with their current insurer. After all, many consumers do see insurance as a commodity rather than an emotional decision. Not only can this be harmful to the industry, but potentially to the customer too if they do not receive a high quality service. Historically insurance has been price-driven, rather than loyalty driven. So, how can we encourage loyalty from consumers and increase the probability that they will renew policies? The policyholder experience through a claims process can make a world of difference, and here is how we can make the best of this.

Education

Educating policyholders during their respective claims processes is key to encouraging loyalty.  Although policy small print should be made clear before consumers take out a policy, it cannot be guaranteed that consumers have paid full attention or can recall evert detail. This can leave consumers not fully covered for their claim. Ensuring the consumer is fully educated throughout every step of the journey is vital to ensuring a smooth process and a positive outcome. Through educating the client, you are ultimately building trust and a relationship with them, making it likely that they will stay loyal and return to you in the future.

Communication

By continuing communication with the consumer throughout the process, you are giving much-needed support and knowledge. Insurers can find it challenging to differentiate themselves from competitors through the eyes of the customer, but by offering a personable service it is likely that the consumer will feel loyalty to their current insurer, and not consider going to another provider.

Collaboration

The claim life cycle can be lengthy, and when insurers, damage management companies and other suppliers are involved, it can sometimes feel a bit chaotic. By collaborating with the entire supply chain effectively, it not only creates a smoother process for the industry, but most importantly the consumer too. Partnering with suppliers who deliver a quality service on behalf of your brand is critical and will be essential to making a difference to the consumer experience. Having a strong collaborative approach within the chain will ensure the very best solutions are afforded. This is beneficial for keeping consumers updated at every stage of the claim journey, building trust and eventually loyalty.