The operation of processing a life insurance claim is the greatest opportunity for life insurance companies to make an impression on an insured's family and friends and therefore, make the case to do business with them.
A recent study by LIMRA found the manner in which a claim is processed is more often than not indelible — for better or worse — rendering the company with little room to maneuver afterward.
The study, "The Moment of Truth: Individual Life Insurance Claimant Satisfaction" found that 95 percent of life insurance beneficiaries were "satisfied" with their claims experience. However, the study also found that there is ample room to improve in order to bump respondents' claims experience into the "extremely satisfied" strata.
There are discernible and practical differences between the two that come down to much more than a superlative adjective. Respondents who reported that they were "extremely satisfied" are nearly four times as likely to be interested in doing more business with the insurance company; more than three times as likely to recommend the carrier, and more than twice as likely to feel strongly about the critical role that life insurance plays following the death of a loved one.
