In a recent webinar hosted by PropertyCasualty360, Delivering Seamless Customer Experiences in an Interdependent Claims Ecosystem, a panel of industry experts tackled the topic of customer satisfaction in the auto claims and repair industry and what claims organizations must do to improve.
Participants included Michelle Raue, Chief Claims and Transformation Officer at Preferred Mutual, Eric Brandt, former Chief Claims Officer at Allstate, Deb Zawisza, senior principal of Datos Insights' insurance practice, and Paul Strachura, former Chief Claims Officer at State Auto.
The discussion centered on findings from CCC's Moments of Truth study, which uncovered the critical "moments" in the auto claims and repair journey impacting customer satisfaction scores and retention outcomes.
CCC's Moments of Truth study surveyed over 2,400 consumers who had filed a first party claim and completed a repair process to identify the moments impacting satisfaction and retention. For insurers, the study found that clear communication about the claims process, quality of repairs, and satisfaction with the ability to get a rental were the top determinants of customer satisfaction scores.
One of the study's most surprising findings was that carriers and repairers play an important role in each other’s satisfaction scores. For carriers, the quality of the repair mattered, and for repairers, clear communication about the claims process was key.
"Customers now expect a holistic view of an event," said Raue. "They see us working together to make them whole, and we no longer have the luxury to point fingers at repairers or insurers."
Participants discussed the critical role of collaboration between insurers and repairers. Raue emphasized the need for open platforms, where both insurers and repairers have real-time access to claims and repair statuses. She said this can drastically improve the customer experience by providing up-to-date information, reducing gaps, and avoiding potential conflicts. "We need to tie this together," said Raue, "so that we have insight across the entire repair process."
Stachura stressed the importance of repairing the historically strained relationship between carriers and repairers. "Repair networks are not the bad guys," he explained. "We need to build relationships with repair shops to foster collaboration and ensure we all focus on delivering the best outcome for the insured."
Stachura also highlighted the importance of assigning ownership within the insurance company, ensuring there's a department or team dedicated to overseeing repair shop relationships, aligning goals, and improving communication.
The panelists all agreed that technology plays a vital role in improving the claims ecosystem. Zawisza pointed out that technology can connect various components of the ecosystem, including claims systems, repair platforms, and communication tools. "It's not just about transparency," said Zawisza, "but also about consistency of communication across the entire ecosystem."
AI and digital photo capture tools are also helping insurers improve efficiency and deliver quicker results for customers. Zawisza emphasized the role of digital tools in automating routine tasks, such as photo capture at the first notice of loss (FNOL), enabling insurers to expedite the claim process. "AI is already helping adjusters optimize their day-to-day workflows," she added, "and we're seeing more connected experiences emerging as a result of these digital innovations."
While technology is key to efficiency, the panel stressed that human touchpoints remain crucial. "You've got to marry the human touchpoint with technology," said Stachura. Customers often need reassurance and guidance, especially in moments of distress after an accident. "We're the experts, and we need to let the customer know what's happening and what they need to do."
Zawisza also noted that customers prefer personalized communication, whether it's email, SMS, phone, or in-portal, and insurers must respect those preferences to provide the best experience. "The ability to manage customer preferences and deliver communication in the way they want can improve the overall claims experience," she said.
Panelists also explored how insurers can leverage data to enhance customer experiences and reduce costs. "Data helps optimize not only customer experiences but also claim outcomes," explained Zawisza. She noted that using data early in the claim lifecycle can help insurers anticipate potential issues and resolve them before they escalate.
Brandt stressed that financial pressures on consumers, like out-of-pocket expenses and higher deductibles, make the customer journey even more sensitive. In fact, the Moments of Truth study found that being upside down on a car loan in a total loss, the presence of an injury, and being a first-time claim filer were the moments that best helped to predict carrier defection. Insurers must use data like this to proactively identify stress points and offer solutions such as better coverage options. "Feeding data back into pricing, underwriting, and product development is key to ensuring the industry continues to meet customer needs," added Brandt.
As the insurance industry has returned to profitability, Brandt said the time is right for the industry to focus on retention. "Customers are feeling the pinch of higher premiums, so when a claim happens, they expect a high level of service."
"We're all being held accountable, and we have to figure out how to bridge the gap between insurers and repairers," said Raue. "The key is in fostering a more connected, transparent ecosystem for the benefit of our customers." She noted that 74% of carriers are using legacy systems, which can make it more difficult to move forward with the right technology to support data flowing freely between ecosystem partners.
The panelists agreed that making the case for technology investment is an important part of staying ahead in today’s environment, where staff numbers are dwindling, and customer expectations are higher than ever.
"The fact is, a claims organization is a direct reflection of the brand and can very well represent the reputation of that company," said Stachura. "We've got to make sure that our partners, whether they're underwriting or actuarial or whatever, can understand the value associated with what we bring to the party."
"Our goal in all of this is to get the customer back on the road and if we do it as efficiently as possible, that's a benefit for everyone," said Zawisza.
