Brokers in stress: Customers are waiting so long for claims settlement!

Brokers in stress: Customers are waiting so long for claims settlement!

Support in claims cases plays a central role for insurance brokers and multiple agents, as a recent survey by Asscompact magazine shows. This survey surveyed 302 professionals active in the industry. The average age of the respondents is 57 years, while on average they have 29 years of experience in the financial services sector. The average annual turnover of brokers is 269,000 euros, which underlines the economic importance of this industry. The survey also shows that personal property insurance accounts for 23% of the business, while motor vehicle and commercial property/casualty insurance each contribute 14%.

A key finding of the survey is that 82% of brokers perceive supporting their customers in the event of damage as their responsibility. In contrast, only 10% of respondents believe that insurers are solely responsible for settling claims. These results make it clear that 70% of brokers view claims settlement as a joint task between the agent and the insurer.

Response times and challenges

Insurers’ response times vary greatly. 10% of vehicle claims are processed within 24 hours, with the most common response time being between 1 and 3 days. What is alarming is that 39% of vehicle claims are only processed after more than 3 days. In the case of damage to residential buildings, 37% of insurers only respond after more than a week. These long waiting times lead to increasing dissatisfaction among brokers, especially when they have to wait more than a week for a response. The brokers see the biggest deficits in the areas of response times and accessibility of contact persons.

However, the professional competence and simplicity of the claims process are rated better. It also becomes clear that speed and clarity are of great importance to brokers. An overwhelming majority of 94% prefer communicating with insurers via email. In addition, 77% of brokers would like to be informed about the insurer's correspondence with the customer.

Supporting customers in the event of damage

Supporting customers in the event of a claim is considered essential, as many policyholders are often emotionally affected and overwhelmed. In such situations, both insurers and brokers have to prove themselves. Policyholders are often unable to assess the guaranteed benefits in advance, and it is only in the event of a claim that it becomes clear whether the trust in the chosen insurance is justified. It is therefore crucial for brokers to support their customers with specialist expertise and extensive professional experience in order to defuse uncertain situations.

Overall, the insurance industry in Germany is one of the sectors with the highest sales, which is often viewed as sales-intensive products due to its complex nature. The Asscompact survey also shows that 39% of brokers also advise their customers on how to prevent future damage and 33% can help through networks of specialist companies. The collection of feedback on customer satisfaction with claims processing and settlement, which was collected from 43% and 56% of brokers respectively, also shows that the demands placed on the industry are constantly increasing. In the event of damage, speed counts – both in processing and in communication.

In summary, the industry challenges are significant for both applicants and intermediaries. The quality of claims settlement and the response times of insurers are considered crucial by brokers. Insurance magazine and Michaelis Law Firm illuminate these aspects in detail.