Insurers who are looking to differentiate themselves and provide more than just a payout should consider adding emotional support to their products, according to professional nurse adviser firm RedArc. In fact, the professional nurse adviser says that for larger and more serious claims, the emotional impact of events is often more severe than the material loss – particularly in the instances of flood, fire, bereavement and accident.
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The company’s experience also shows that insurers who do enhance their products with well-targeted services that truly make a difference to the emotional wellbeing of their customers, often see an increase in loyalty. This is because:
The support in itself is hugely valued and creates a goodwill between the customer and insurer, which can also mean recommendations to family and friends.
In a marketplace where aggregators are commonplace, the customer is often quite removed from the provider. This additional emotional support gives the insurer the opportunity to have more customer contact and build a stronger engaged relationship with them.
This is proven in a US study by Bain* where there is a direct relationship between the number of added benefits provided by insurers (across all types) and higher levels of customer loyalty.
When is emotional support required?
An individual involved in a serious car accident is likely to be treated physically by the NHS however they are also likely to suffer emotionally from the trauma and so would benefit from having a medical expert who can support them emotionally. This can help the individual to deal with the trauma which can avoid it escalating into more serious conditions such as Post Traumatic Stress Disorder (PTSD). It can also aid in helping people to prepare for return to work with longer-term treatments such as physiotherapy, coping with a possible disability, and guidance on how and where to access local support networks.
Similarly, in the event of a flood or fire, a homeowner may suffer distress which can lead on to other more serious mental health conditions.
An insurer who offers the emotional support to help get life back on track and back to normal in these types of circumstances would be highly regarded.
This type of support is typically offered at claim but can also be accessed throughout the life of the policy, where no claim is made, helping customers at other difficult times in their lives.
The bottom line
RedArc’s current partnerships are testament to the fact that insurers who enhance their products with additional services benefit. 96% of RedArc’s clients say that the service enhances their view of the sponsoring insurer. This means more client engagement – an objective for many insurers. More engagement leads to repeat business, buying extra products, and making recommendations.
Select partners wisely
Insurers should select their third-party suppliers with due care and diligence as they are essentially an extension of their own brand and need to reflect similar values and service levels. Some insurers opt to white label all additional services which helps build their brand, others feel there is benefit in naming the provider as it can add credibility.
Christine Husbands, managing director, RedArc said: “Insurers that want to grow loyalty and create differentiation need to genuinely have an ambition to go beyond just offering a cheque. Emotional support is no longer the preserve of health insurances and critical illness products but it can be a thoughtful addition to any motor, home or other general insurance product.”
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