March 14, 2025
5 minute read
Customer loyalty is often defined by moments of truth – those pivotal journeys that shape perception and long-term engagement with a brand.
In Property & Casualty (P&C), a key example of such journeys are Claims. When customers file a claim, they are usually dealing with an unexpected event such as an accident, illness, property damage, or loss.
Receiving the full claim amount isn’t the only reason behind a positive customer experience. Approximately 20% of customers that reported having a very positive experience during their Claims journey (journey promoters) did not have a satisfactory outcome with the final amount (their claim was denied, paid in part or they dropped it as the claim amount would be less than the excess).
An insurer’s initial response, communication, and the ease of process determine whether the customer becomes a promoter or a detractor of the brand – which ultimately can mean a customer staying or leaving after the claim (regardless of the claim result!)
Why the Claims Journey Matters
The overall claims experience significantly influences long-term customer loyalty and a customer’s likelihood to recommend that brand to a friend–their relationship Net Promoter Score (NPS).
NPS Prism data indicates that customers who experience a positive claims journey have a relationship NPS that is 119 points higher than those who have negative experiences.
Claims, Customer Retention and Price Sensitivity:
A positive claims experience has an impact beyond the relationship NPS; it also drives retention.
Our survey data shows that 2.3 times more promoters are very likely to renew their policy with their Insurer as compared to passives and detractors.
Importantly, promoters are also more accepting of price increases. 3 times the number of Claims promoters are willing to renew compared to passives and detractors after having undergone premium increases.
Key Drivers of a Positive Claims Journey
The channels customers use and the path they take sets the stage for a successful Claims experience. With the exception of very simple or small claims, most other Claim experiences benefit from the human element. In particular, the experience is optimized for customers starting with a human touchpoint and ending with a digital one – this experience has an NPS of 42 compared to an all digital customer experience with an NPS of 10.
Chart 4: Claims eNPS by Channel paths taken by Customers
There are other drivers of a claims process that can help the customer along the journey and create a positive outcome. Starting with a clear and easily understandable overview of the process (including list of documents) can result in an NPS boost of 81 pts.
Setting upfront expectations on timelines helps manage customers’ questions and follow ups and boost eNPS by 62 pts. When insurers send status updates proactively, taking away the need for customer follow up, they see an eNPS boost of 40 points.
Leveraging NPS Data for Strategic Advantage
Business leaders, not just CX teams, can leverage NPS data to:
- Benchmark Performance: Compare your company’s performance against industry standards.
- Drive Process Improvements: Identify and address friction points within the claims journey.
- Enhance Competitive Positioning: Use NPS insights to refine competitive strategies and marketing communications.
- Inform Pricing Strategies: Understand how a positive claims experience can offset the negative perception of price increases.
Expert Tip:
Integrating qualitative customer feedback with quantitative NPS scores can uncover nuanced insights that drive meaningful changes to claims processes.
Ready to Transform Your Claims Journey?
Elevate your customer experience and drive loyalty by leveraging actionable NPS insights. Download our comprehensive benchmarking report today, and discover how industry leaders are optimizing claims processes for higher retention and growth.
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