Merlin News

Managing Customer Trauma

02/06/2008

When recently asked by a leading Insurance Publication to comment on our procedures to manage the emotional trauma which is often associated with claims, we were delighted to assist and the transcript of the article appears below;

"When a loss occurs and a Policyholder makes a claim, often a technical or practical solution is sought to deal with what can often be an emotional issue - managing Customer trauma. By understanding the emotional cycle of a claim, argues Malcolm Hyde, Training Manager at AMG, Loss Adjusters and Brokers can prevent and substantially reduce the trauma suffered by many Policyholders.

When dealing with a claim, Loss Adjusters are required by the CILA Charter to behave ethically and with integrity, whilst the FSA demands that they treat Policyholders fairly. At AMG, we ensure that our Adjusters have the necessary training to fulfil these obligations, but we go one stage further - we also provide them with the tools to effectively manage Customer trauma, as we see this as a vital part of the healing process for many Policyholders.

All of our Adjusters understand the emotional claims cycle and the role they play at each stage to prevent or substantially reduce the trauma suffered by many Policyholders. This approach has paid dividends and resulted in greater Client satisfaction and increased business retention.

Trauma training

Our Adjusters learn that following almost any domestic or commercial incident giving rise to an insurance claim, the Policyholder will experience an emotional reaction. This reaction follows a less severe version of the grief cycle as depicted in the following diagram.
Fig 1 Kubler-Ross Grief Cycle

'Stability' is the state experienced prior to the loss - normal day-to-day life.

Following the experience of a serious loss, the diagram shows a period of 'Immobilisation' when the Policyholder will say things like, "I just don't know what we'll do" or "I have no idea where we'll stay", etc. As the scale of the event starts to become apparent, 'immobilisation' sets in. Adjusters and Brokers need to be upbeat and positive at this stage, offering practical solutions where necessary.

'Denial' is the stage where the Policyholder will say "I cannot believe this" or "This cannot have happened". Policyholders are likely to have periods where they try to believe the loss never happened but the horror hits them again and they slip back to the 'immobilisation' phase.

'Anger' will follow. "It's not fair", "Why did this happen to me?", "Someone must be to blame!" are the comments and feelings expressed. Brokers will be only too aware of the frustrated and angry Policyholders shortly after a loss.

The Policyholder will go through the 'Bargaining' phase. The Policyholder is looking for remedies. Coinciding with repairs being carried out or when the specification is being agreed suddenly a new style kitchen or bathroom is required. The Policyholder starts to see alternatives to deal with the change. With this knowledge the Loss Adjuster can engage with the Policyholder to ensure a win-win bargain is agreed, aiding the Policyholder's emotional recovery and facilitating repairs.

The Policyholder may go through a period of 'Depression'. Whilst not clinically depressed, it will seem to them that nothing will ever get better. The repairs seem to go on for ever. It is vital at this point that the Loss Adjuster manages expectations by staying in touch and being one step ahead of potential problems, making sure that any issues which do arise are promptly addressed and remedied. Our Adjusters' role is to win the Policyholder's confidence and engender trust that they are there to help and that they will work with the Policyholder to find solutions to any problems encountered.

To recover from the 'depression' phase the Policyholder will start to 'Test' the situation. They will start to look at ways they might adapt to living in the home once it has been restored.

Finally there will be 'Acceptance'. At this stage the Policyholder will take ownership. Interestingly, when the claim is concluded, an Adjuster often witnesses the Policyholder suddenly taking full control, demonstrating that they no longer require outside support and guidance. Suddenly they are liberated from the loss.

The financial payment to the Policyholder is only part of the healing process. The integration of the emotional intelligence competence (ability to cope in social situations) and emotional knowledge training (ability to understand social interaction theories) helps to ensure that it is not just the financial needs that are addressed by AMG Loss Adjusters. By working alongside Brokers, they can prevent and substantially reduce the trauma suffered by the Policyholder".

Issued for and on behalf of :-

AMG
Stratton Court
Bromborough
Wirral
CH62 3PW

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