Great expectations

As the old saying goes, when it comes to insurance the customer is king, however, according to some clients the London Market is delivering poor service and failing to get claims paid in a timely manner.

Achieving the perfect balance in good customer care is not just about answering e-mails and phone calls promptly and keeping documents filed properly, it is about knowing your customers and ensuring they understand how your business functions. With this principle established you can then start to work on what is considered by some to be the holy grail of happy relationships - managing customer expectations.

Targets on contract certainty and an emphasis on transparency and accountability from regulators have all worked in favour of client relationships in the London Market. Some clients, though, are still experiencing questionable levels of service and find it hard to get the right person to answer an enquiry, or they find that files have gone astray and e-mails are not being answered.

In the London Market as a whole, work still needs to be done on customer services in general and customer care in claims departments in particular. Answering enquiries quickly is not rocket science and keeping hold of documents should be relatively easy with good application of appropriate technology. Examining processes and procedures is important, and new systems can often be put in place to minimise human error.

Service requirements are dictated by the characteristics of the business being underwritten. For companies that work in high-volume, low-premium situations, it may be that an e-mail at renewal and a call when there is a problem may be enough to keep the client satisfied. Yet, for large and complex businesses where premiums can reach six or seven figures, clients expect and should receive kid glove treatment.

For this type of client, regular telephone conversations are not enough. Having an established relationship with your client before claims arise is essential, as the degree of trust developed in a relationship will facilitate the claims process in the long run. Only regular, face-to-face encounters can help to establish relationships and boarding a plane to Rome or Sydney to facilitate this should be par for the course.

Communication breakdown

Good customer care is the touchstone of the smooth running of claims departments and what frustrates clients most is a lack of communication. They want to be kept informed about how investigations are progressing, what stance is likely to be taken on liability, when settlement offers are to be put, and so on. Many clients will also want a degree of involvement in the claim's decision making, such as consultation before a liability decision is made.

There will always be insureds that are dissatisfied with the size of the settlement agreed and those who are more concerned by the length of time it takes to bring matters to a conclusion. Regardless of their problems, a lack of communication in one or both directions between insurer and client is usually at the root of all these problems.

Effective claims management is driven by a partnership approach. The tripartite relationship between insurer, broker and client, where each party has a vital contribution, is essential in order to avoid Chinese whispers. Even in difficult situations good communication makes the path easier.

Technology can improve communications and response times dramatically. Many of our insured and broker clients now communicate with our company via e-mail, enabling us to provide an immediate response to urgent queries or developments. That said, we do favour the use of the telephone where possible as it is the most immediate and personal form of communication that is available and practical. At a basic level, having claims files scanned onto an electronic data management system means that copies of documents can be sent or received easily via email, which is much quicker than the post.

It is vital for insureds and broker clients to know what to expect from you when something goes wrong. Claims practitioners need to make sure that clients understand the terms of their contract and that they have read through all the terms and conditions. Some policy documents are lengthy, running to thousands of words, so it can be easy to sign them without proper understanding.

It is also ill advised to make promises to clients that you cannot honour with the short-term view of securing their business. If your client believes you can perform a service that you cannot then you have not done a good job in managing their expectations. The only viable approach is to be straightforward and upfront with clients as to their prospects of defending a claim or any deficiencies in their health and safety procedures. Telling a client what you believe they hope to hear where the truth is different will serve no purpose in the long run and only store up problems for the future.

A matter of trust

Clients value insurers' experience and expertise in the handling of claims and they are best served if we advise them objectively. However, the successful handling of clients' claims depends upon an understanding between client and insurer that will develop only if each party feels that they can trust the other to fulfil their obligations. It is an important part of a claims handler's job to ensure that their point of view is adequately communicated to the client, but also that the client's views are likewise fully understood and taken into account.

Maintaining an open-minded, pragmatic and commercially minded stance throughout the claims process is invaluable. It may be the case that your client does not have the right level of cover when a situation arises, but by working with them to find a solution you demonstrate your commitment to them and to their business.

Although there are different solutions to many problems, what is important is to think of the long-term good of your client and your relationship with them. Clients will be happy if they can see evidence that their interests have been protected as actively as they would wish to have protected them themselves.

A basic tenet when managing expectations is to keep clients up to date on how claims against them are progressing and how they are resolved. Clients may also like to be involved in the process and an insurer should accommodate them in this insofar as is practicable.

The claims function should be at the heart of any insurance firm and it should enjoy the full support of top management. Those in the industry must always strive to settle valid claims quickly, and where there is a dispute the client must be listened to.

If you want to keep your clients then meet them, take care of them and, more importantly, manage their expectations. Making sure they know what the situation is from the start will help them, and you, avoid unnecessary and unpleasant situations.Mark Swinbank and Nic Wellington, Claims directors, DA Constable Syndicate 386, part of QBE

Dealing with difficult customers

Listening to what a difficult customer has to say is the only starting point, because most complaints, disagreements or misunderstandings will have an origin in miscommunication. Understanding the other person's position clearly is key to resolving whatever issues they may have, so it may be that once they feel listened to and have had their point of view considered they would be more willing to listen to an alternative.

Ten hints for good claims care

1. Meet the client when the risk is written and help them understand the policy document.

2. Make regular visits to insureds on site, regardless of whether there are claims or not.

3. At all times be open, honest and fair.

4. If there is a dispute, try to understand the other side's point of view. Remember to listen.

5. Keep clients informed with how claims against them are progressing.

6. Apply the human touch when dealing with all parties.

7. Where clients prefer to be involved in the process, accommodate them as far as possible.

8. Advocate continuity. By being fair and open-minded you are more likely to retain clients.

9. Keep in touch regularly.

10. Make sure your client understands fully how you are supporting them.