Industry Performance Metrics

It’s long been acknowledged that claims handling and service are key to customer satisfaction in the insurance industry, so the findings of an inaugural carrier evaluation survey conducted by Willis are worth reading. As part of the survey, more than 2,500 Willis Associates were asked to rank carrier groups on a scale of 1 (lowest) to 10 (highest) against four categories: underwriting; policy administration; claims; and service. The results show that while all insurers were ranked above the mid-point, they need to do more to further differentiate themselves through service and performance. For example, underwriting was overall the highest rated category, with a mean score of just under 7, but when it came to policy administration, claims and service, there was a much wider variation in opinions about the performance levels of carriers. Claims (e.g. attitude, settlement and technical support) and service (e.g. loss control, risk assessment and post placement services) actually received the lowest overall category ratings. Interestingly, the survey respondents were highly experienced, with 62 percent having more than 10 years of industry experience. Now we’re just a bit curious as to what a similar evaluation of brokers by carriers might reveal.

One thought on “Industry Performance Metrics”

  1. My background is 19 years in and around the p& c industry in Canada. 12 of those years with direct writers, and 3 with a large brokerage firm.

    One of the key selling points I always had with customers, while working for the direct writers, as a sales rep and then as a sales manager; was service level response time, that I could demonstrate and talk about. Even something as simple as new policy issuance, printing, and delivery; or revised document issuance when there was an endorsement. The firm I worked for, produced those docs the very night the change took place, and were out the door the very next day. Broker distribution competitors that I had, would take weeks in most cases.

    While a broker for 3 years, it was in commercial lines, and I was then on the receiving end of a night and day experience on response time from over-worked underwriters, for new business submissions and endorsements.

    The companies out there, that figure out how to speed up their service delivery on every single part of the transaction, will for sure see more submissions from top quality brokers, even if the price isn’t the best. Was a huge struggle internally often, to have a decently priced submission from the company that responded quickly, and then diplomatically pull teeth to get the best priced market to respond.

    Solutions most likely reside in 3 places: hiring the right people and give them the right training & authority (responsibly of course), take a good look at the business process & workflow to find time wasters, and once found, redesign the workflow to eliminate it without creating more overtime for staff, or leverage technology more to eliminate it with a machine.

    Eliminate the mundane, and the underwriters and claims folks can work on the more interesting and complex and will deliver better and faster.

    Most company marketing reps hear agents and brokers complaining about price, coverage, and capacity. The real issue, said or unsaid, is service time delivery.

    My 2 cents.

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