‘Quality’ customer care key in insurance

Unique dynamics playing out in the East African insurance sector such as a greater awareness of insurance and greater demand for products are driving changes; from mergers, consolidations and new entrants alongside proposed new regulations.

This is underpinned by changing distribution channels- how insurance is sold, driving greater financial inclusion. Insurer’s reputations are now on the line.

Reputation is the biggest asset and takes the longest to build but in today’s instant world, the fastest to go. The regulations are designed to enhance the sustainability of the sector through greater protection for the customer.

As more people access insurance, so insurers are servicing larger customer bases in new ways with new mind-sets and customer care is the new battlefield.

The reality is every customer; a new customer, a loyal customer, from the village or the town, should be treated the same; fairly with a consistent outcome each and every time. Without customers there is no business and the newest challenge for any East African insurer is how to increasingly look after their customer to get this consistent and fair delivery.

Insurance is a product you cannot see, touch or feel. What the consumer buys is peace of mind and protection in the event there is a claim.

So in many ways they are buying a service they do not want to use but need to have.

That is not to say each and every claim should be paid. The key is managing a claim quickly, fairly and transparently to ensure the right decision is made. Not all claims are covered under the policy and not all are valid. Any insurer who does not embrace customer care is in difficulty.

It is a way that insurers can differentiate themselves and if everyone in the organisation, from the receptionist to the CEO give 1 per cent extra, they will all reap the rewards. Customer care has several facets: You do not get a second chance to make a first impression!

It is therefore visual. An attractive broker or insurer’s office will create a warm impression; well dressed and friendly staff will keep that impression going; a handshake, a smile and above all timely delivery- do not keep the customer waiting. It is also technical. Insurers cannot bamboozle customers with small print and jargon; less is more when it comes to the products.

So customer care is about breadth, knowledge and geography; insurers must understand their policies, be able to explain this simply and be able to know the unique emotional and cultural sensitivities.

Making an insurance claim is stressful so there has to be a balancing of empathy and the right outcome- this is what makes up the customer experience.

Above all it is a culture. It should be the number one strategic priority of any CEO and the whole company should be built around the customer. This runs from product design, service, and claims. It covers everything from policy wording, call scripts, letters, complaints and litigation. The culture of customer care should be automatic and unconscious.

The way forward is to marry innovation and technology with conduct risk principles. Therefore, Insurers who use social media and technology to monitor customer satisfaction proactively (not reactively after the customer complaint has gone viral) and who use predictive underwriting to design exciting, well balanced products to make a difference will win this battle.