Can independent insurance agents increase customer retention through the insurance claim process?

As an independent insurance agent, giving your clients affordable insurance policies is always your priority. But that might not be enough to keep them returning. If you want to put your insurance company on the map, creating a welcoming customer service and efficient insurance claim process is a must.

It is more profitable for an independent agent to keep old customers returning rather than acquiring new customers. Hubspot states that the average customer acquisition cost for the insurance industry is a whopping $303, while Bain & Company state that increasing customer retention rates by 5% increases profits by 25%.

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Why should an independent insurance agent get involved in the insurance claim process?

A claims adjuster knows how to handle an insurance claim process better. As an insurance sales agent, you know how to sell insurance policies, but you probably know nothing about claim settlements. But for many policyholders, the claims process is the ultimate moment of truth. A successful settlement and emotional support from you will convince the clients to come back to the same independent insurance agent.

Since your customers pay premiums every month, they expect you to be there when they feel vulnerable. If you match their expectations, then they are more likely to trust you for their future policies. It hardly matters to them that you, an independent insurance agent, have no control over their claims process.

When a policyholder goes through a damage or theft or any kind of loss, their first emotions are anger, sadness, and despair. When they call you, it is important that you respond with empathy and friendliness. Above all, be eager to help and willing to give some time out to listen to them.

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What goes into great customer experience during an insurance claim?

During an insurance claim process, an insurance adjuster will be called to estimate the damages, investigate any fraudulence, and approve the insurance coverage to the policyholders. There is hardly anything for you as an insurance agent to do in this case. Still, it is a great gesture to be present with your clients throughout the process.

On the one hand, excellent customer service brings in more business, while on the other hand, people don’t always know what goes into providing a unique customer experience. To an insurance agent, creating a website and investing in call centers may seem like the best bet at customer service. Your customer may, however, see these amenities as a means to an end. 

As an independent insurance agent, one of the best ways to keep your clients is to make a positive personal impact. A stressful situation like a robbery or theft leaves your client in need of speaking to someone friendly and understanding. Your clients will appreciate getting to deal with agents or representatives directly rather than an automated bot on their screens.

Excellent customer service means your clients are less likely to walk out. Show them that you are committed to giving them a 100% customer satisfaction throughout the year. 

independent insurance agent and insurance claims

What to do during the insurance claim process?

Depending on the type of insurance, the insurance claim process is bothersome, but your clients are under the impression that you will be there to help. Forbes suggests that listening sends a strong message that tells customers that this relationship will be more about their needs than ours.

Should you fail to show up in this critical time, you may stand to lose your client. Accenture reports that 47% of customers stopped doing business with a company after a disappointment by how they acted in a critical situation.

Be present through the process of filing a claim and provide relevant information. Let your clients know you have their back.

Here’s a list of information to relay to your client:  

  • Time of limit for filing their claims
  • Time of limit for resolving claim disputes
  • Cost estimates of the damages
  • The insurance coverage provided by their policies

Become a mediator between the insurance adjuster and your client. Since you know more about the claims process than your clients, you can give your clients peace of mind in a turbulent situation when you take over.  

Do not forget to check in on your clients regularly until the claim has been settled. Emotional connection is more vital that you think. An insurance adjuster always handles the analytical and decision-making process but has no prior connection to your customers. Only you have the authority to make calls to your clients and ask them about their situation. According to the Harvard Business Review, a business can reduce its customer attrition to 4% by emotionally connecting with its customers, resulting in a 15% increase in the number of active customers.  

Unfortunate events occur worldwide every day, but that does not mean that they should stay unfortunate. When life throws lemons your way, make some lemonade, and share it with your clients. A little sweetness goes a long way! 

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