Here's how insurance companies can address consumers' biggest concerns

Insurance often finds itself at the centre of frustration when it comes to finances. In fact, a recent report by the Australian Financial Complaints Authority (AFCA) shows that comprehensive car insurance and home insurance are high on the list of consumer grievances, only surpassed by credit cards and personal transaction accounts.

So, we decided to delve into the common concerns consumers have, as reported by the AFCA, and share some ideas to address them. After all, insurance should bring peace of mind, and we want to help make sure it does just that.

Filing a claim and then enduring an agonising wait for a response is enough to test anyone's patience. That’s why it’s crucial for insurers to streamline the process and bring resolution closer.

Solution: tech to the rescue

Technology has the potential to offer quicker and more user-friendly claim experiences. Take NIB, an Australian health insurer, which leverages machine learning to automate document processing (like invoices and receipts). This initiative has the potential to speed up claims, boost accuracy and keep customers informed through real-time updates.

Ever feel like just a number? Unfortunately, many policyholders have had it with poorly managed policies, claims processes that don't meet expectations and service reps that don’t seem to empathise enough.

Solution: training makes a difference

There's good news! Organisations like the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) try to bridge this gap by offering comprehensive training programs for customer service teams. These programs equip professionals with the skills they need to communicate effectively, empathise with customer concerns and ultimately deliver a more positive experience.

It's understandable to feel let down when your claim settlement doesn't match your expectations. This can be caused by two key factors: unclear policy wording and concerns about fair claim evaluation.

Solution: simplifying insurance speak

Fortunately, some insurance companies have heeded the call. One example is Bupa's ‘Customer Friendly Language’ program, which simplifies complex health insurance terminology. This initiative aims to demystify coverage details, reducing confusion and potential disputes over claims.

Facing a claim denial can be incredibly frustrating, especially when the reasons seem unclear or unfair. This often stems from confusion surrounding policy exclusions or how claim criteria are applied.

Solution: open communication and appeals

Fortunately, insurance companies are recognising the importance of clear communication. Lemonade, a US-based insurance company, sets a positive example by providing detailed explanations for claim denials alongside a straightforward appeals process. By prioritising open communication and accessible appeals processes, insurers can build trust and foster a more positive claims experience.

Dealing with insurance hassles is certainly frustrating, but there's light at the end of the tunnel. Companies are now cutting down wait times, making terms easier to understand and explaining claim denials more clearly. We're not quite there yet, but these changes are making insurance a bit closer to what it's meant to be: a real peace of mind.

If you’re not happy with the way your insurer handles complaints maybe it’s time to switch providers? We compare some of the best insurers here at Mozo.