This blog highlights the key numbers that can help you understand where you stand in terms of insurance customer experience and improve it.
It’s an established and widely accepted fact that insurers need to transform themselves and reinvent their customer excellence game to address their real challenges and clear the way for future growth. Technology, while changing the insurance landscape, has also made improving the insurance customer experience game more structured.
Let’s look at some metrics that are crucial in guiding and improving insurance customer experience.
- Average time to settle a claim
- Number of referrals
- Revenue per policyholder
You can keep track of these to know how good your insurance customer experience game is and improve them.
Average claim settlement time:
Source: Guiding Metrics
Average claim settlement time tracks how long it takes to settle claims made by various policyholders in your fold. This is a KPI where the lower you are below the industry average, the better because nothing satisfies a customer like a quick claim realisation. As simple as this sounds, a claim is where the value of your service is ultimately realised and hence, this KPI is directly linked to your insurance customer experience.
A study by J.D. Power & Associates on property claims showed claim cycle time to be the leading indicator of customer satisfaction. So, keep this short for customers to find you sweet!
Number of referrals:
This is the number of customers who go on to refer your services to their friends, family and social circle. It’s simple – if your customers have a very good experience with you, they will go on to refer your services to others. The number is directly affected by customer satisfaction with your services and the higher this number is, better the insurance customer experience you are offering is.
Renewals & retention:
This refers to the percentage of customers who continue to stick with you until the end of their policy term and choose to renew their policy or buy another policy with you. This is strongly linked to how well-tailored and far-reaching your insurance offerings are, your digital capabilities and the overall insurance customer experience you can offer. This number needs to be high for your customer pool to keep growing.
This graph shows the Independent Insurance Agents of Dallas stat that the average customer retention rate within the insurance industry to be 84%.
Revenue per policyholder:
This KPI refers to the amount of revenue generated by your insurance company per policyholder serviced. From an insurance customer experience point of view, a low number for this KPI could be due to lack of dynamic policy offerings, poor sales strategies, bad digital presence and an unpleasant customer experience. This is strongly tied to having a stable bottom and top-line growth, so pushing this KPI up is key.
These are just a few of the metrics that you can use to influence your insurance customer experience. Let us know what you think!
The right set of insurance technologies can help you track & manage these KPIs well. Check out our top Digital insurance transformation tools. You can also find our other blogs on improving insurance customer experience here.
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