Insurance

Adapting the engine to an “electric” world

While it can sometimes be difficult to compete on price with direct insurers, AX Commercial Sales Manager Steve Molloy shares his experience on how FNOL and claims management partners can help brokers attract and retain customers.

Brokers are looking for ways to make ‘service’ a unique selling proposition in the wake of the Financial Conduct Authority’s ban on price walking, as they increasingly think about how they can differentiate.

Price competition

No-fault claims conversion is an important KPI, but it’s typically used more to predict revenue than to reduce claims expenses. If your claims partner increases conversion by reducing leakage, not only does it give you more control over the customer journey, but it also diverts claims spend and the cost of underwriter resources.

Brokers who closely manage their relationship with vendors can benefit from access to accurate data to make more informed decisions. Some of our partner brokers work closely with us by conducting regular reviews to quickly identify data trends to improve conversion and service.

The service behind the product

Some brokers are reluctant to reference service on their website or have a dedicated complaints section on their site’s home page, but complaint handling is an important customer touchpoint, where customer satisfaction and the broker’s reputation can be gained or lost.

Consider Amazon’s approach, where customers look at three things: product, price, and reviews. Customer reviews on broker websites would provide reassuring third-party endorsement, and brokers could work more closely with their claims providers to use customer feedback to promote their marketing messages to improve reputation and brand.

Net Promoter Score, Trustpilot, Google Reviews and Facebook are the go-to social media channels for measuring customer service success. Brokers could use these tools to communicate a NPS score of 65 or Trust Pilot rating of 4.7, for example.

These metrics should be standard service levels for the claims provider, who can track social media feedback and use the intelligence to continually improve the broker’s service offering. The client testimonials shared with the broker are an invaluable commodity for marketing the assets and increasing brand awareness as a service leader.

Digitization

Some brokers are now looking to improve their claims reporting channels to provide their changing population with digital options for reporting and handling accidents.

Insurers – and some accident management providers – are investing heavily in self-service apps that allow customers to report and manage an accident without having to speak to someone in a call center. While some customers prefer to deal with a human in situations that can be emotional, others prefer to do everything online themselves. The demand for digitization and automation is growing, especially among young people.

If brokers are hesitant to invest in self-service technology, an alternative would be to partner with an outsourced provider that is already on the path to digital transformation. Most partners have the option of both white-label and dual-branded claims, so consider exploring options to tailor your offering through an outsourced claims partner.

Electric vehicles – a changing world

The emergence and growth of hybrid and electric vehicles is changing rapidly. Battery electric vehicles are growing in popularity, accounting for 11.6% of new vehicle registrations in 2021, up from 6.6% in 2020, according to the Society of Motor Manufacturers and Traders. When you also include plug-in hybrid electric vehicles, hybrid electric vehicles and mild hybrid electric vehicles, the market share of greener vehicles increased from 24.7% in 2020 to 39.4% in 2021.

But only one vehicle out of 100 out of UK roads are plug-in – a far cry from the government’s target of reaching one in three by 2030. Brokers should benefit from the transition to VEs as an opportunity to educate customers about cost, range and charging infrastructure to help overcome any uncertainty about VE adoption.

Currently, there are not enough insurance products to VEs because brokers and underwriters lack the data to predict accidents and repair costs. Brokers can create demand, source data from VE vehicle suppliers and work in partnership with underwriters to take more calculated risks.

In today’s ever-changing automobile insurance market, supporting customers by offering expert knowledge and VE The products will help brokers improve retention and attract new business.