Customer service and ethics: A dynamic duo!
For some, the term “ethics” is synonymous with constraints and rigidity, concepts that are not particularly compatible with customer experience, which suggests flexibility and openness. On closer examination, however, it is clear that ethics and customer experience are rooted in the same concepts.
The purpose of this article is to explain how the ethics of agents, brokers and claims adjusters complement customer service, and connect these concepts to L’expérience client : pour placer le service au coeur de l’industrie!, a presentation given during the Journée de l’assurance de dommages on March 28, 2024.
An example: The duty to advise
First, we must remember that the word “ethics” refers to an ensemble of rules and duties that govern a profession and the conduct of those who practice it.
Thus, ethics in damage insurance include the overarching principles related to treating consumers fairly. A client who feels protected and feels that they can trust their agent, broker or claims adjuster will have a successful customer experience. In other words, to ensure high quality customer service, “treat your client as you yourself want to be treated,” says Jean-Luc Geha, Associate Director of the Institut de vente HEC Montréal, during the presentation.
Let’s look at the duty to advise, which is at the very heart of the agent’s or broker’s role. The following major ethical principles are connected to this duty:
1. Proactivity: means asking questions and collecting the information required to properly understand the risk.
2. Listening: means properly understanding the risk in order to analyse the client’s coverage needs.
3. Transparency: means providing the client with all the necessary and useful information to make an informed decision.
4. Availability: means being accessible and responsive, taking the time to look after the client properly and answering questions promptly.
A second example: Claims
A claim can be an opportunity to create customer loyalty, as Mr. Geha explains. A client who is satisfied with how his claim was handled and the service the claims adjuster provided will be more likely to renew his contract with the same insurance company in order to obtain the same high quality service should another unfortunate loss occur.
In terms of how ethical obligations serve to improve customer experience, the principles of proactivity, listening, transparency and availability (to which fairness and vigilance must be added) also apply to claims adjusters.
5. Fairness: means remaining objective when enforcing the insurance contract.
6. Vigilance: is the opposite of negligence. It means being diligent when providing services and acting with caution during every step of the settlement.
Respecting these ethical principles enables you to correctly analyze the client’s needs, recommend suitable coverage and give them all the explanations required to help them understand the scope of their insurance contract or the claim settlement. You are thus acting as a conscientious professional while delivering an optimal customer service experience.
Ethics: A lever to reach your business goals
Do you call your clients back in a timely manner? Do you translate the complex concepts of an insurance contract or a settlement into easily accessible language? Do you listen and ask relevant question in order to identify very specific risks requiring coverage? Does your concern with transparency and fairness when handling a claim help the insured to feel confident in their decisions?
Offering high quality customer experience not only enables you to comply with the principles of your code of ethics; it also means you are contributing to building customer satisfaction and loyalty.
Remember Mr. Geha’s words: “good service does not guarantee customer loyalty, however bad service is a sure way to lose a client.”
Customer experience and ethics: Three golden rules
The main reasons for dissatisfaction among consumers who lodge a complaint with the Office of the Syndic at the ChAD are often related to customer experience: failure to inform and explain, a poor needs analysis or poorly carrying out the mandate.
“The value a firm provides to the client is the service rendered minus the effort required,” explains Vincent Gaudreau, President of Fort Assurance. “This applies equally to a simple insurance product that requires clear, fast advice, as to a complicated, customized product that requires the certified member to spend a great deal of time listening and explaining.”
To help you in your role, here is a review of the three, basic principles and the key actions associated with them:
1. Listen
- Don’t simply follow a script. Ask open-ended questions to fully understand the client’s needs.
- Offer personalized service.
2. Advise / Inform
- Remember: generally speaking, clients are novices when it comes to insurance. They do not know what you know.
- Offer coverages based on identified needs to avoid clients finding themselves over- or under-insured.
- Provide sufficient information on the various steps involved in claims settlement and all the aspects of the claim.
- Keep in mind that your role is to advise insureds by providing them with all the useful, necessary information required to close the information gap between the client and you.
3. Explain
- Demystify insurance jargon and the various coverages available.
- Present the contract’s limits and, in particular, explain the consequences of refusing coverages that you have recommended.
- Don’t assume that clients understand their insurance contract and the various steps involved in the claim.
By truly listening to the client’s needs, by providing appropriate advice and properly explaining the coverages offered, you are putting into practice the rules of conduct in your code of ethics and thus optimizing customer experience.
How can I fine-tune my customer experience skills in line with ethics?
Training guarantees you will constantly develop your professional skills. For example, developing techniques to listen better or to use clear and simple language will help you to win your client’s trust, while at the same time complying with your ethical obligations.
The ChAD offers training on optimizing customer service and compliance, including:
- The mandatory 2024-2026 course The insured’s journey: A road punctuated by milestones
- A/T Risques, Season 1, Episode 1 – Les travers de la route [in French only]
- Décelez les failles lors d’un renouvellement [in French only]
- Loi 25 : rappel des grands principes et nouveautés [in French only]
Any questions?
Don’t hesitate to contact Accent Déonto to ask questions and validate your professional practices.
Accent Déonto
514 842-2591
1 800 361-7288
info@chad.ca