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Customer Service and a Good Policyholder Experience Go Hand in Hand

You’re still waiting for your pizza after 45 minutes despite there being only a handful of other diners. The server has barely said two words to you, and the decorative chairs feel like you’re sitting on bricks. When your food arrives, the crust and toppings are what you wanted, but was the overall experience worth another visit?

Emphasizing customer experience while completing the service may not seem as important for insurance as it is for restaurants. But as with pizzerias, your policyholders choose their carriers and decide what feedback they give friends, social outlets, and business review websites.

Global management consulting firm McKinsey & Company studied insurance customer experience through U.S. repairable auto claims. Qualities determined to drive customer satisfaction include speed of the claim settlement, ease of communicating with the insured, employee knowledge and professionalism, employee courtesy, and process transparency.

These should also be the foundation for a good property and casualty insurance claim experience.

Efficient Processes Reduce Time and Frustration for Policyholders and You

Your policyholders may be waiting to make repairs or replacements until their claim is resolved, and they want it completed as quickly as possible. Time is money not only for you but also your policyholder, particularly if it’s a commercial client.

Use, maintain, and upgrade procedures for efficiency to reduce the wait time for your policyholder. Technology can automate the claims process to decrease how often data is entered, or technology can move the claim along to the next stage, such as preparing it for onsite assessments or desktop review services.

As insured needs change, so should your response. Enhance your technical skills and capabilities to better fit your customer and provide prompt resolutions.

Regular Communication Should Be Maintained Through All Platforms

If 2020 taught us anything, it’s that communication can take place over a variety of platforms and there’s no excuse for being inaccessible.

Face-to-face appointments or phone calls should offer positivity and professionalism. Empathy and helpfulness can go a long way in times of stress or crisis. Your policyholders should feel like they’re your primary focus and know that you’ll do everything to determine a fair and accurate resolution.

Those sentiments can be conveyed by maintaining open lines of communication through other outlets. Keep policyholders in the loop about service progress and answer their questions through all platforms, including email, phone calls, website chats, and company apps.

Employee Courtesy and Transparency Includes Earning Their Trust

In the same vein as communication, courtesy and transparency are important. Whoever is on the other end of the line, chat, or email should know how to have professional tones, responses, and attitudes while communicating with customers. Your insured may not notice it – but they’ll remember a negative experience.

The positive tones your policyholders are receiving – if they’re genuine – will also increase their trust in you and your carrier. They want to know you’re going to resolve a claim accurately and appropriately.

It’s important to be open with them – even if it’s not the news they were wanting to hear. Delaying communication or not being transparent can make matters worse going forward.

Show You’re Knowledgeable and Experienced to Handle Your Policyholder’s Situation

Part of providing a good customer experience is demonstrating your knowledge about the insurance industry and each claim. Have the details readily available without your policyholder repeating them.

Don’t simply tell your insureds the final result. If they prefer, be able to educate them about why that decision was made, provide inspection documentation, and be prepared to answer their questions or know who to ask.

Clear, detailed information shows you’re knowledgeable about what’s filed in the claim and the individual situation, that you care about your customer, and that you want them to understand the process.

HVACi Is in Line with Your Customer Service Model

The HVACi team knows what your policyholder seeks in a customer service experience because it’s what we provide to our own clients – you.

Our quick cycle times and innovative technology keep the claim on track to not delay the process for you or your insured. The comprehensive reports are formatted and written to ensure we provide detailed damage and next step options while not confusing anyone with industry jargon. Our team is trained to speak with insurance personnel and your insureds in a professional and courteous way throughout the process, whether you contact us by calling, submitting a claim through the website, or accessing the adjuster portal.

Let your partnership with us enhance your policyholders’ experience with you.

Adjusters, Ensure Accurate HVAC Claims Settlements By…

Settling claims fairly and accurately begins with making sure you as an adjuster have all the necessary information from the start and that it’s verified. This includes determining cause of loss, scope of damage, and appropriate repair or replacement recommendations priced at market value. Anything less means the claim settlements could be for an inaccurate amount.

Adjusters, ensure your claims with HVAC systems are settled as accurately as possible by:

1. Considering all repair options rather than only full replacements

The percentage of residential HVAC systems that required a full system replacement totaled less than a quarter of all the systems HVACi assessed last year.

Contractors often like to tell your insureds that a full HVAC replacement is required to return them to pre-loss condition. They might use reasons such as, “Repairing an HVAC only extends its lifetime by a year or two” or that “Replacements will save you money in the long run.” Justifications exist for why a replacement may be necessary, including if there is a safety hazard or if the cost of repairs is more expensive than installing a new system. But full replacements are usually not the best solution, and most settlements don’t require one.

Repairs, including swapping out a major component and leaving the rest as it is, are more likely than replacements. The HVACi 2020 Annual Claims Report states only 24% – less than a quarter – of residential HVAC systems were determined to need a full replacement. It’s important adjusters have an equipment evaluation completed to see if an alternative is available that would be a more accurate and appropriate solution.

If you’re settling for more replacements than repairs, you’re likely adding unnecessary claims leakage.

2. Confirming cause of loss

HVACi’s assessments determined these were the actual causes of loss for residential split systems. Policyholders more often had them claimed as a different peril, which could have resulted in settlements for damages that shouldn’t have been covered. 

Lightning, hail, and water are all perils that affect HVAC systems and were the most claimed causes of loss outside of “unknown” on residential HVAC claims last year. However, HVACi assessments determined these perils were not actually the most common causes of loss impacting residential split systems, as shown by the graph above. It’s important adjusters determine why the equipment sustained damage to ensure they’re making accurate settlements for only the perils covered by the policy.

More than half of the residential systems HVACi assessed were recategorized to a peril other than what was claimed after evaluation. For residential split systems, more than a third were determined to be damaged because of age-related wear and tear.

If you’re settling most HVAC claims without verifying cause of loss first, you likely have had inaccurate settlement results.

3. Assessing each unit in claims with multiple HVAC systems

Thorough testing should be completed on all equipment, regardless of how many systems are included in each claim.

Commercial and large loss claims frequently have multiple systems included in them with a costly claimed amount. To get the most accurate results, adjusters should have thorough evaluations of each item – even if there are hundreds.

Nearly 20% of the commercial HVAC systems evaluated last year were determined to be non-damaged at the time of assessment. One-third of all commercial systems didn’t sustain covered losses and shouldn’t have been included in the claim.

If you’re not assessing every HVAC system included in claims, you’re probably settling for equipment that wasn’t damaged or was damaged by a peril that isn’t covered by the policy.

4. Verifying market pricing and availability

Not double-checking equipment estimates could result in settlements that are higher than they should be. Photo Credit: “Accountant” by Shutterbug 75 / CC BY 4.0

Contractors provide policyholders estimates based on their company’s pricing, which may not be in line with market costs. An adjuster should verify scope of damage and the cost of equipment and labor to make the most accurate settlement.

Real facts should be the foundation for a settlement cost – not overinflated equipment estimates. The expense for materials should be based on market value pricing. Labor costs should be consistent with the loss location.

If you aren’t verifying market pricing, you might be settling for more than necessary.

5. Being up to date on regulations and exactly what they mean

Policyholders, contractors, and adjusters may misunderstand changing regulations or believe untrue or misleading information about them. It’s important to know exactly what they entail to make accurate settlements.

January 1, 2020, was an important date in the HVAC industry. That’s when the phase-out of new production of R-22 ceased entirely and only reclaimed R-22 became available on the market. The news of the deadline came years in advance and so did the start of myths surrounding the phase-out. An adjuster who isn’t up to date on regulations could fall victim to a contractor who doesn’t fully understand the rules or is banking on no one else knowing them and unnecessarily approving a full replacement “in order to comply.”

Energy efficiency regulations, including SEER standards, and other federal and local codes impact how equipment may be manufactured, repaired, or replaced. It’s important adjusters stay familiar with how their policyholders and their claims could be impacted.

If you aren’t up to date on regulations and what they mean, you may not be settling claims accurately.

6. Using a knowledgeable, objective third-party assessor

Many adjusters rely on third-party assessment companies to evaluate their policyholders’ HVAC systems. This is a good idea if it’s a company you know will offer objective, comprehensive, and accurate assessments based on just the facts.

HVACi is the nation’s leading provider of HVAC and Refrigeration damage assessments thanks to its thorough investigations, swift cycle times, and actionable reports that enable insurance carriers to settle claims quickly and accurately. Our experienced and knowledgeable professionals verify cause of loss, assess every HVAC system and component listed on the claim, and provide replacement and repair recommendations. Each report also includes market pricing and equipment availability to ensure you are settling for the appropriate component at a fair and accurate price. Plus, HVACi’s subject matter experts not only stay up to date on trends and industry news, they also offer continuing education training and educational resources for adjusters.

Don’t run the risk of settling any claims inaccurately because it could lead to a negative customer experience or unnecessary claims leakage. Submit a claim to HVACi to receive an accurate claims assessment that will lead to better settlements and resolutions.