Claims are the point at which the promise made by an insurer is ultimately put to the test – and new research from Insurance DataLab shows the experience brokers and their clients receive can have significant commercial consequences.
The second wave of Insurance DataLab’s Commercial Lines Claims Pulse, produced in partnership with Research in Finance, found that 75% of brokers were satisfied with their claims experience, compared with 77% in the first wave.
But the consequences of getting claims wrong appear to be becoming more pronounced. More than four in five dissatisfied brokers (82%) said their trust in the insurer fell as a result, while half said they were unlikely to place business with that insurer again over the next 12 months – up from 39% in the first wave.
By contrast, 92% of satisfied brokers said they were likely to place business with the insurer again.
These findings formed the backdrop to Insurance DataLab’s latest webinar, Claims Pulse: Raising the Bar for Commercial Claims, hosted by Research in Finance chief executive Toby Finden-Crofts.
He was joined by Richard Napoli, divisional director – customer solutions, UK at Markel; Stuart Black, head of claims at Partners&; Laura Hancock, managing director at Yutree Insurance; and Insurance DataLab co-founder Matt Scott to discuss what separates an excellent claims experience from an average one – and what insurers and brokers can do to improve customer outcomes.
Claims performance is a commercial issue
One of the strongest themes running through the discussion was that claims should not simply be viewed as an operational function or a cost to be managed.
The Claims Pulse findings demonstrate a clear relationship between claims experience, broker trust and future placement decisions. For insurers, that means claims performance has implications for distribution, retention and broker relationships.
For brokers, meanwhile, claims performance is an important part of insurer selection and the advice given to clients, alongside price and coverage.
A strong experience following a significant claim can also become an important retention tool, demonstrating the value of both the broker and insurer relationship when the client needs them most.
Consistency is therefore particularly important. Claims Pulse satisfaction levels vary significantly by product line, from 94% for business equipment and office contents claims to just 57% for construction claims.
Ownership matters more than simply hitting an SLA
Service levels provide an important framework for claims handling, but the panel agreed that hitting an individual SLA does not necessarily mean a good customer outcome has been achieved.
A customer can still experience significant delays if a claim passes through several stages, with a new response period beginning at each point.
Instead, the discussion repeatedly returned to ownership: somebody needs to understand the overall position, take responsibility for moving the claim forward and maintain a sense of urgency.
The Claims Pulse findings underline the challenge. Broker satisfaction with claims teams’ knowledge and expertise stands at 79%, but falls to 74% for communication and 73% for accessibility.
Third-party management is weaker still, with just 66% of brokers satisfied.
Outsourcing can bring valuable specialist expertise into the claims process, but every additional hand-off creates another potential point of friction if responsibility is unclear.
The panel’s message was not that outsourcing itself is the problem, but that insurers need to retain accountability for the overall customer journey, with close management of partners and strong communication throughout.
Collaboration leads to better claims outcomes
Closer collaboration between insurers, brokers, customers and other parties involved in a claim was another consistent theme.
For larger and more complex losses in particular, bringing together the insurer, broker, policyholder, loss adjuster and other specialists at an early stage can help everyone understand the issues, responsibilities and desired outcome.
Brokers bring detailed knowledge of the client’s business and commercial pressures, while insurers and their claims partners provide technical expertise and an understanding of how the claim needs to progress. Sharing that information early can prevent misunderstandings, manage expectations and ultimately improve outcomes.
Transparency is particularly important where problems arise. If an insurer identifies a potential coverage issue or other complication, raising it with the broker early gives both parties an opportunity to work through the issue and manage the client’s expectations.
Importantly, a good claims experience does not always mean the customer receiving the outcome they originally wanted.
Where a claim is not covered, timely decision-making, clear technical explanations and transparent communication can still create a positive experience and help protect the customer relationship.
Raising the bar through better claims insight
The latest Commercial Lines Claims Pulse shows that most brokers continue to have a positive experience when dealing with commercial claims, but it also demonstrates how much is at stake when that experience falls short.
The discussion highlighted several areas where further progress can be made: clearer ownership of the claims journey, stronger communication, closer management of outsourced partners, genuine insurer-broker collaboration and technology that allows claims professionals to focus on where their expertise matters most.
Insurance DataLab’s Commercial Lines Claims Pulse provides an independent view of how brokers experience claims handling across the UK commercial insurance market, allowing insurers to benchmark their performance and understand where their claims proposition is strongest – and where there is room to improve.
The research also forms part of Insurance DataLab’s wider insurer benchmarking, combining claims insight with data covering complaints, underwriting, solvency and customer outcomes to provide a more complete view of insurer performance.
Download the latest Commercial Lines Claims Pulse report to explore the findings in more detail, or get in touch to find out how Insurance DataLab can help you benchmark your performance against the market and your competitors.