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NEGATIVE REPUTATION OF INSURANCE CLAIMS IS UNDESERVED

28th September 2017

Research finds customer perception of making a claim does not match the reality

  • 59% believed making a claim was daunting, complicated and time-consuming
  • 71% who had made a claim said that their experience was good or very good
  • Survey from new consumer insurance claims review website www.claimsrated.com

Consumers in the Britain are struggling with a huge preconception when it comes to making an insurance claim – fearing it to be “daunting, complicated and time-consuming”.

Research online[i] for new insurance claims review service www.claimsrated.com found 59% of the 1000+ people questioned from across England, Scotland and Wales believed this to be the case. Among 16-29 year olds, this rose sharply to three quarters (76%).

These results contrast strongly with those who had made an insurance claim, as seven in 10 (71%) of that specific group rated their claims experience as being Good or Very Good.

The survey also discovered how 38% of all those who responded to the online Claims Rated survey did not feel insurance companies do their best to make the claims process as simple as possible.

However, half the respondents nationally said they did have trust that insurance companies would pay out, either in full or part, should they need to claim. This though fell to 37% of 16-29s, again signalling a problem among the industry’s future customers.

Claims Rated has been launched to help consumers identify which insurance companies are offering a quality claims experience; clearly highlighting this so choosing general insurance products such as Travel, Gadget, Pet, Home and Car becomes easier.

Its Beta launch comes in the same week the Competition & Markets Authority made recommendations about Digital Comparison Tools (DCTs) and talked of the need for sector regulators to work with DCTs and suppliers to “improve the effectiveness of quality metrics in order to mitigate against the risk of hollowing-out (a reduction of product quality as a result of an undue focus on price).” It also recommended the FCA finds ways to build on its existing work to “facilitate accurate like-for-like comparison that incorporates non-price factors.” [ii]

Founder James Clarke – who has 15 years of experience in the insurance industry – says he wants to do just that by helping insurance brands, underwriters and claims handlers differentiate themselves by the claims service they offer. They will each receive an overall “Claims Rating” – this is based on the ratings provided by customers using the platform to feedback on their experience of claiming on a policy.

James said: “According to our research, a quarter of British consumers find choosing a general insurance product either complicated or very complicated. It is well researched and also shown by our survey that price is a dominant factor for consumers when buying an insurance policy. However, any policy is only ever as good as the quality of the service you receive when you need to call on the cover provided.”

He added: “When we asked whether the claims experience was important to a purchase of Home, Car, Gadget, Travel and Pet insurance, 70% on average believed it was, going up to 75% for Travel and 79% for Home.

“The CMA report this week makes very interesting reading because it calls for opportunities for customers to make more effective comparisons, which is exactly what we are trying to do with Claims Rated. Valuable information about claims is woefully missing for consumers in nearly all insurance sales processes so it’s no wonder price takes centre stage in their decision-making. We will bring to the fore positive stories of customer service and support ensuring consumers have this measurement available when making purchasing decisions.”

The Claims Rated website works across the insurance industry. Insurance companies can invite claimants to offer their verdict on the experience they’ve been through to provide a rating that ultimately differentiates their product at point of sale. Consumers can also go to the ClaimsRated.com site and leave their own feedback directly.

Claims Rated focuses entirely on this independent measurement to promote quality in insurance claim experiences. The team behind it have many years of experience in the insurance industry, which allows them to understand the complexities and nuances that exist in the industry and its distribution. Claims Rated makes differentiation simpler and more positive for brands, underwriters and customers.

Claims Rated founder James Clarke said: “We are striving to provide a service that gives an honest, fair and accurate reflection of an insurance company’s claims performance in the eyes of their customers and believe that by doing this we can highlight where the quality exists in the insurance industry. That ultimately benefits all parties.”

For more information or interviews, please contact Jonathan Weinberg, Bootstrapped PR, on behalf of Claims Rated: jw@bootstrappedpr.com / 07947 141014

About Claims Rated

Claims Rated is a privately-owned business whose founders have worked in the insurance industry for many years. They passionately believe that information about the ‘claims experience’ should be one of the prime considerations when purchasing an insurance product. But Claims Rated believes it is woefully missing currently in nearly all sales processes.

Claims Rated works with insurance brands, underwriters and claims handlers to invite all claimants to easily ‘rate’ and provide feedback on their experience to the Claims Rated online community after they have suffered a loss. This means those working within the industry can gain a rating for claims experience that differentiates the service they offer from their competitors at point of sale.

Claims Rated is focused entirely on independently measuring and promoting the quality of insurance claim experiences. Claims Rated is not measuring satisfaction with the sales process. The team behind Claims Rated all have years of experience in the insurance industry and this allows them to work through and understand the complexities and nuances that exist in the industry and its distribution to make all relationships simpler and more positive for brands, underwriters and customers.

Claims Rated membership is currently available for Travel, Gadget, Home, Motor and Pet insurance brands, underwriters and claims handlers. For membership enquiries please email: hannah.jones@claimsrated.com

[i] The online survey was carried out between August 10th to 15th by Online Opinions. It surveyed 1,000 adults online across England, Wales and Scotland.

[ii] https://www.gov.uk/government/publications/digital-comparison-tools-summary-of-final-report/digital-comparison-tools-summary-of-final-report

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