Are we just giving lip service to the customer experience?

I attended an insurance breakfast last week and heard a number of people talk about the customer experience. I thought I would share just two claims that have crossed my desk.

Yesterday, one of the LMI team attempted to report a landlord claim on behalf of a family who have lost a loved one. He thought he was speaking with the insurer but it appears that it was a joint number of the international insurance broker and the insurer. On the one hand, the person taking the call asked the full name of our team member, the name of our company and then sought to get the date of birth of LMI team member. This is after refusing to provide his full name to us for our records. All we know is that it is Tom.

Clearly, the person would not allow us to report the claim but insisted that one of the executors do it. The executor thought this was a complete waste of time when he had provided authority to us to act on their behalf and he was also put through the same experience. The executor, concerned of identity theft, refused to provide his date of birth, he knew neither his sister’s broker nor the insurer would have his date of birth to check against anywhere. He too could not believe that despite asking all this information Wayne from the insurance company would not provide his surname so that he had a record of who he was talking to. He hung up in disgust.

Attempt three, the executor emailed the notification of the claim through to the insurer, only to have someone from the Philippines ring our office asking for “Wayne”. Our office was not permitted to report the claim, Wayne was not the executor but the second claims officer spoken. To my knowledge the claim has still not been set  up, none of us know a claim number nor if an adjuster is to be appointed. All I know is that any insurance, both personal and business, the executor has with that insurer will be reviewed on renewal, and to be fair so it ought to be.

Not for the first time since it was announced has an insured said to me, a full enquiry into the general insurance industry cannot come soon enough.

I try to defend our industry but how do I justify this stupidity.

In another example, a long standing client has been financing a personal loan of $500,000 to have their home fixed. The Insured has invoices for all trades totalling over $400,000 and we had a test quote from a builder who we know well and has done a thorough scope of works which has come in higher. The issue is the cash settlement offer is around $250,000, naturally the Insured will not accept it.

While this goes through the disputes process it means the client has had to find the extra funds to meet the repayments which means no treats, no holidays, no nothing. There is no doubt in my mind that what has happened is that a builder who knows they will never have to do the repairs and is on the insurers panel has provided an unrealistically cheap price to win favour with the insurer and the insurer are trying to force the client into accepting a low ball offer. This insured will not do so and will tough it out and again is anxious to make a submission to the enquiry.

Here I think it is down the actions of one person within the insurance company who appears from our side not to be treating clients close to fairly.

Whether the inquiry goes to this level is unlikely but we ought not be surprised if we continue to fail Insured’s when they need us that we will be faced with enquirers and greater regulation.

Addendum

Within minutes of posting this I received the following email which I have since received the okay to publish without any names.

Confidential

Hi Allan,

That is just disgusting.

I also happen to be [X]’s Claims Manager as well as running my own book as an Account Manager.

Confidentially I can tell you that no less than 6 times in the last 2 months I have had the identical ridiculous situation with [Y] of all Insurers.

3 claims were landlords. 3 claims were motor vehicle.

Again; the attitude displayed by the person on the other end of the line was nothing short of arrogant…and again no names were forthcoming from them.

I was a little sarcastic a couple of times, & mentioned that my own personal details (DOB etc) were of no assistance or consequence to them.

What is frightening is that, if your issues were NOT with [Y], then are we facing an endemic problem starting to materialise across our whole industry??

It is just so disappointing.

Keep up your good work.

Cheers – [Z]

Sadly I had to write to [Z] that our experience was not with the insurer he named! Clearly this is more wide spread than I appreciated. Why are they collecting all these dates of birth when the risk of cyber attacks is on the rise and at least with the claim we are dealing with inexperienced people cannot even read an email?

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