Permission to say “I’m sorry.”

Article Contributed By RSA

In the dark days following a severe motor collision or a devastating house fire, sometimes all it takes for an insurance claims handler to bring comfort to a customer is to tell them: “I’m sorry for your loss and I’m here to take care of you.”

Having an insurance claim can be a devastating event in a customer’s life. Providing empathy right at the start of a claim allows for some much-needed emotional support and can go a long way towards reducing fear and anxiety.

It sounds simple, but in reality some claims handlers are hesitant to apologize and show empathy for a customer’s loss. The fear is that it might somehow indicate they have done something wrong.

“I think at times people feel they need to receive permission to apologize, but it’s a perfectly professional thing to do,” says Irene Bianchi, the vice president of claims and corporate services at RSA. “In fact, it’s a great thing. When people experience violations to the normality of their lives, they deserve empathy.”

Empathy is so important that it was listed as one of the main requests policyholders made of their insurer, according to a customer service survey RSA conducted in May and July of 2007.

Based on the survey results, RSA spent five months putting its entire Canadian claims team through a unique, two-day customer service and empathy and listening course. The International Insurance Institute tailored the course, entitled “Awesome Customer Service Empathy & Listening,” to the specific needs of insurance claim representatives. It is designed to help customer-facing employees improve communication. “It gave them the skills and tools needed to reach customers in a meaningful way,” says Bianchi.

Participants found that small things, such as softening the tone of their voices, speaking slower and spending more time with a customer during the initial claim call, could create an immediate and lasting connection and decrease workloads down the road.

According to Carl Van, a trainer with the International Insurance Institute, the following five tools are invaluable ways to make claim representatives more empathetic listeners (thereby reducing the degree of customer anxiety following a traumatic event and, in many cases, speeding up the claim management process):

Explaining the process

Excellent customer service means explaining the claim process in a way that makes the customer feel we are on their side, says Van. This is true even for a client who is completely at fault. ” Most of the time we do a pretty good job of explaining to people what’s going to happen to them,” he says. “Unfortunately, we sometimes explain it in a way that sounds more like they are going to get run over by a steamroller.” says Van.

Spending as much time as possible on the phone with a customer during the initial claim discussion can free up a lot of time in the future. It can help eliminate confusion and is key to making an immediate emotional connection. This can also result in reducing the number of repeat calls in the future, allowing for better time management.

Showing empathy

According to the International Insurance Institute, we tend to empathize with people going through situations that would upset us if we were in their shoes. The challenge is, the longer someone works in claims the likelier they are of becoming desensitized. “Even if this is a case where a person’s vehicle fender got scratched, it can still be a traumatic and unfamiliar event for that person,” says Van. “It doesn’t mean that all customers would be upset in this situation. It just means that we as claims people have to remember that they have the potential for being upset, regardless of the size of the claim.”

If claims representatives don’t empathetically acknowledge their customers’ needs, they can get stuck in the middle of a claim themselves. Showing empathy can help to eliminate a claimant’s anxiety, which will make it much easier for that person to listen and respond.

A claim handler can learn a lot about how to deal with a particular claim based on the type of language the customer uses. For example, people who begin sentences with the words “I think” tend to be more analytical and want a more fact-based approach. Those who say “I feel” may be looking for a more emotional response. The tone, pace and inflection of the voice are all key in creating an empathetic atmosphere for a customer.

Delivering on promises

It’s pretty simple: do what you say you will do. Call back when you say you will. This makes a final impact in terms of building trust with the customer.

“The key is to make sure we understand when we are making promises,” says Van. “That means being specific about when we’re going to call a customer back.” Failing to return a call when you said you would call might be perceived as breaking a promise.

Ensuring prompt and equitable settlements

Many customer service issues can arise out of settlements. The International Insurance Institute stresses an insurer must ensure the settlement is for the right amount and is paid out promptly. If a customer doesn’t agree with a claim settlement, a claim representative should show how the amount was determined and invite the customer to submit any evidence that might support an increase in their claim.

Meeting and exceeding a customer’s expectation

Customer service is meeting or exceeding a customer’s expectations. Even if tasks and responsibilities aren’t listed out in detail, claims representatives must understand their overall job is to provide customer service to every customer, says the International Insurance Institute.

“If you meet or exceed the customer’s expectations, you have a customer-service win and you’ll probably hold on to that person as a customer,” says Van. “If you fall short of those expectations, whatever they are, you’ll probably ultimately lose that customer. The key here is that in claims, we have the opportunity to set those expectations.”

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Some claims handlers are hesitant to apologize and show empathy for a customer’s loss. The fear is that it might somehow indicate they have done something wrong.