An intriguing headline from Carrier Management caught my eye recently: “Dissatisfied Claims Put Carriers at Risk of Losing $170 B in Premiums”. The report from global professional firm Accenture focused on rising levels of customer dissatisfaction as the time to settle auto claims increases.
As more P&C insurers offer insureds the opportunity to file claims online, insureds have come to expect a speedy and seamless claims experience. However, according to Accenture’s survey of customers, claims adjusters, and underwriters, that has not been the case. If it takes an auto insurer one month to go from initial claim to final settlement, over 30% of the insureds expressed dissatisfaction with the claims process.
GMI’s leading-edge auto insurance programs offer experience, knowledge, top-rated carrier partnerships—and in-house claims handling to our valued customers. Our dedicated claims management group, Corporate Claims Service (CCS), works with the insureds who are covered by our programs. They offer flexibility and convenience in reporting a vehicle claim and insureds can complete the entire claim process online.
Technology: threats and opportunities
We’ve come to expect that shippers like Amazon, FedEx, UPS, and even the USPS will let us know when our packages are expected to arrive. Maybe that, and training and continual education of claims staff, claims adjusters, and insureds could improve customer communication by explaining the claims process and setting customer expectations.
Corporate Claims Service’s processing time has been streamlined with online submissions and follow up. They are constantly fine-tuning our services so we can offer the most timely and fairest claims settlement we can.
Supply chain issues affecting auto claims settlement
Supply chain issues play an important role as pandemic-related plant shutdowns, shortages of ships and shipping containers, and chip shortages led to fewer new vehicles being produced to meet the consumer demand for vehicles—new and used.
Then, there’s inflation. Like price increases at the gas pump, the price of motor vehicle parts and equipment has gone up. Add in medical costs for injuries and social inflationary jury verdicts and costs continue to mount.
Indirect insurance-related costs from supply chain issues also increased the use of rental car coverage. Because it was taking longer to repair the cars, the rising cost of renting one added to the loss severity of auto claims, according to travel website Kayak. Between December 2019 and December 2021, the cost to rent a car while the damaged car was being repaired nearly doubled from $46/day to $81/day.
Adding further to the challenge of renting cars, in 2020, there was a big selloff of rental care fleets and rental agencies have been slow to increase their fleets as new-car production dramatically slowed in 2021. Many insurance companies cap the cap the cost of rental cars.
Whether your company is an independent or franchised car rental agency, a new or used car dealership, an auto repair shop or collision center, Our Auto Rental Fleet insurance provides a wide range of limits and coverage for any size fleet—large or small.
If you have an account who is just starting out in the rental business, US Choice is there for them. Our sister company is a leader in providing an easy, low-cost system for starting and operating their own rental operation without the high cost of franchise fees.
Commercial transportation insurance is what we do
For over 42 years GMI has specialized in covering your commercial transportation risks. We've expanded our programs beyond Monoline Business Auto to include Cannabis Transport, Auto Rental Fleet, General Liability and Contingent Auto Lease.
Learn more about our Auto Rental Fleet coverage and our dedicated claims services here.