Root cause analysis of customer service requests in the Insurance industry to radically cut costs while improving service levels

1. Optimizing Self-service in
Insurance
9th January 2013

2. Eliminate before automating
• Customers don’t want “service”. They want
products that work first time;
• 20-30% of contact centre work with customers
is unnecessary, caused by different parts of
the company itself;
• Radically reducing “contacts per order”
positions the company to provide service to
other operators and achieve scale economies.
Source: The Best Service is No Service

3. Process for optimizing self-service
Make it really easy
to contact your
company
Challenge customer
demand for service
Deliver great Own the
service actions across
experiences Eliminate Create Be the company
dumb engaging self- proactive
contacts service
Listen
and act
Source: The Best Service is No Service

4. Steps to implement self-service
1. Introduce a “killer metric” e.g. Calls
abandoned, Average Speed of Answer
(monthly, daily), Grade of Service;
2. Re-classify customer contacts reasons
3. Change reporting
4. Assign executive responsibility
5. Change the management process
Source: The Best Service is No Service

5. Example: Insurance service contacts
Reason %
I’d like to make a claim 34.0
What’s happening? 20.4
Top contact categories
I need to update the claim 6.6
40
Can you explain? 6.0
35
What’s the procedure? 5.5
30 “Can you
How do I claim? 5.4 explain”
25
Can you help me with my claim? 2.7 represents
20
29% of
15 Are repairs authorised? 2.2
contact
10 Can I pay my excess? 2.1 reasons
5 Have you received? 2.0
0 I have received 1.6
Why haven’t you paid me? 1.6
What is my excess? 1.5
Who is going to be my repairer? 1.3
Source: The Best Service is No Service Has Policy Holder lodged a claim? 1.2

6. Example: Insurance contact outcomes
Call resolution Reasons for Non-Resolution of Calls
As a % of all calls (1159)
40
80 35
70 30
60 25 64.5% of all non-
20 resolved work within
50 management control
15
40
10
30 5
20 0
Claim awaits Claim awaits Action by Action by … Information not
10 action by action by Claims entered
member company Management
0
No Yes
Source: The Best Service is No Service

7. Example: Insurance value matrix
Simplify 12.9% Leverage 4.0%
• •
High value
Can you explain? What’s my excess?
• How do I claim? • Not happy with repairs
• Has PH lodged a claim? • Am I liable?
Company perspective
• You haven’t paid me • Why was my claim
enough rejected/declined?
Eliminate 30.1% Automate/Migrate 53.0%
• What’s happening? • I’d like to make a claim
Low value
• Are repairs authorised? • I need to update claim
• Have you received? • What’s the procedure?
• I’ve received letter/SMS • Can you help my claim?
• Why haven’t you paid? • Can I pay my excess?
• What do I need to send? • Can I have details for?
Low value High value
Client perspective
Source: The Best Service is No Service