As an insurer, how well do you manage the expectations of your insureds or subscribers for the insurance products you market?  If your organization has not given the question much thought or attention, you may end up at or near the top of the Consumer Complaint Indices published by many Insurance Departments. If so, that’s not a desirable outcome. 

Having addressed numerous consumer complaints in my career in the insurance industry, as an employee of an insurer and as a former regulator, I have a few thoughts on the matter.  If you have a large share of a market in any one jurisdiction, you may have more complaints filed against you than others with a lower share of the market.  But, how many of those complaints are legitimate?

It’s not uncommon for insurance customers to think that they have purchased a “full coverage” insurance product.  And, their thinking may not necessarily be attributed to the way the product is sold or represented by the agent or producer.  It may be that the deductibles and exclusions were, in fact, fully explained to them at the time of sale, and the consumer conveniently forgot about those coverage nuances when it became necessary to file a claim. 

But instructing and educating producers in how best to point out coverage differences can help manage the expectations of the insureds.  And, of course, communicating with your customers throughout the policy period or at the time of renewal can be a good way to remind them of deductibles and to point out existing coverage gaps. 

Making sure that your claims adjusters, whether internal or external, are not only familiar with coverages, but also are well-versed in the best approaches to claims handling can also help minimize any complaints that may result from the claims process. 

Part of my role in complaint handling was educating the claimant in what they could and could not reasonably expect.  If you can do that education through producers and adjusters or by communicating with your customers, you may find the result to be fewer complaints.  Also, you may find that your company is viewed in a more favorable light in the eye of the consumer.

Editor’s Recommendation: NILS INsource helps to keep current with customer communication and disclosure requirements.