Why Insureds switch companies after a claim

Customer Satisfaction


The Issue:

The insurance claims process is a critical factor in customer satisfaction and retention. Many customers switch insurance companies after a claim, either due to dissatisfaction with the claims process itself or with the overall level of service they received from their insurer. In this article, we will explore some of the reasons why customers switch insurance companies after a claim and provide some statistics on the number of customers who do so.

What are the reasons customers are dissatisfied?

Reason #1: The Claims Process

One of the main reasons why customers switch insurance companies after a claim is a dissatisfaction with the claims process itself. Many customers feel that the claims process is too complex and time-consuming, requiring them to complete extensive paperwork and provide extensive documentation. Additionally, customers often feel that their claims are not handled promptly and fairly, resulting in delays and low settlement offers.

Reason #2: Level of Service 

Another common reason for switching insurance companies after a claim is dissatisfaction with the level of service provided by the insurer. Many customers feel that they are not provided with adequate support and guidance throughout the claims process and that their concerns and questions are not addressed in a timely and satisfactory manner. Additionally, customers often feel that they are not provided with regular updates and progress reports throughout the claims process, leaving them feeling out of the loop and unsure of the status of their claim.

According to recent research, approximately 25% of customers switch insurance companies after a claim. This number is even higher among customers who have had multiple claims, with nearly 40% of these customers switching insurers after their second or third claim (one could argue whether you still want these). Additionally, customers who have experienced a major loss, such as a fire or natural disaster, are more likely to switch insurers, with nearly 50% of these customers switching after a major loss. 

How can you make a change?

By embracing innovative strategies and implementing customer-centric solutions, insurance companies can revolutionize the claims process and enhance customer retention. The combined efforts of streamlined processes, personalized support, mobile apps, transparent communication, expedited claims processing, and seamless repair service integration will result in a remarkable shift, empowering policyholders and fostering long-term loyalty.

DisburseCloud provides a "wow" experience as a last touch

About the author 

Skip Gilleland

Skip Gilleland is the VP of Marketing and Product Development for the tranzpay companies (DisburseCloud | tranzpay.io | ATUMIZE)

Skip Gilleland is a results-oriented Fintech product developer with a strong background in building and technology. With a focus on leveraging technology for process automation and driving product development, Skip consistently delivers innovative solutions. He has a proven track record of leading development teams and achieving exceptional results.

As the Director of Product Development at Disbursecloud, Skip spearheaded the creation and implementation of Disbursecloud, an innovative outbound payment system. From conceptualization to design and implementation, he oversaw all aspects of development, ensuring seamless collaboration and timely project delivery by managing an offshore team of developers and QA professionals.

Skip excels in establishing strategic partnerships, negotiating contracts, and securing favorable terms with key partners. His excellent communication skills enable him to convey complex technical concepts to diverse stakeholders, fostering productive collaborations.

With expertise in product strategy and execution, Skip conducts comprehensive market research and analysis to inform product strategies. He prioritizes key features based on market demand and customer feedback. By staying abreast of industry trends and emerging technologies, he ensures his products remain competitive.

Throughout his career, Skip has demonstrated exceptional leadership and team management skills. He mentors and develops team members, fosters collaboration, and guides development teams to success. His ability to gather requirements, define features, and establish project timelines ensures successful project execution.

As the Vice President of Marketing at tranzpay.io, Skip excels in executing effective marketing strategies. By aligning marketing efforts with overall business objectives, he plays a pivotal role in driving business growth. Leveraging data and analytics, Skip optimizes marketing initiatives and employs creative problem-solving skills.

With excellent communication and project management skills, Skip effectively communicates complex technical concepts to diverse audiences. He is committed to delivering exceptional results through innovation, collaboration, and staying ahead of industry trends.

In summary, Skip Gilleland is a highly skilled and accomplished Fintech product developer. With a track record of delivering innovative solutions, leading development teams, and driving successful product strategies, he is a valuable asset. His dedication to leveraging technology for process automation and his ability to communicate complex concepts make him an exceptional professional in the field.

CERTIFIED Customer Value Optimization Specialist, Content Marketing Specialist, Email Marketing Specialist, and a Certified Customer Acquisition Specialist

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