First notice of loss sets tone for claims experience

The first notice of loss call a customer makes to their insurance provider after a collision or having vehicle damage “sets the tone” for their overall claims experience, notes a new satisfaction survey from J.D. Power.

That first phone call averages 18 minutes, according to the study, based on responses from 2,458 auto insurance customers in Canada who settled an auto insurance claim within the past 18 months.

“If that initial call goes well, odds are good that the claims process will go well and also bodes well for the long-term relationship with the customer,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power.

Settlement remained the most important factor in the claims experience, the study notes. However, claimants who received an explanation during that first call with their provider about what to expect from the process reported being “significantly more satisfied” that those who didn’t, it says.

While a majority (87%) of claimants received an explanation, overall satisfaction declined by a substantial 169 index points (based on a 1000-point scale), on average, when claimants didn’t receive an explanation of the process, J.D. Power notes.

Overall satisfaction was also higher when insurers answered all claimant questions during that first call, according to the study. Satisfaction among claimants who had all of their questions answered during the first call averaged 810, compared with an average of 651 among claimants who didn’t have their questions answered.

Overall, 90% of claimants were satisfied with their settlement, which is the largest contributor to overall satisfaction with the claims process, according to J.D. Power. However, when expectations weren’t met, settlement satisfaction declined dramatically, by more than 250 index points, on average, the study suggests.