It’s amazing to me that this company is still number one in Auto. With all the Slave Farm employees pulling their own policies plus all the external customer policies we are losing we will be 2 or 3 in no time. Everyone who has been dedicated to Slave Farm for years understands that things need to change. But laying off 7500-10,000 employees (which is the low end of the end state numbers) is insane. The claims employees can not manage the workload right now so decrease the staff numbers will only continue the DOWNSLIDE of the customer service!!! What happened to “PAY WHAT WE OWE” Now we are setting secret targets to make sure our handlers settle within a certain dollar range not what the claim valued at. I have already moved my policies to a reputable company that treats exployees and cuatomers with reapect. I will be retired within a month! I am appauled by some of the things I heard in meetinga with SENIOR LEADERSHIP! It is so sad that State Farm is being destroyed! Again I honestly do mean this....change is needed just not a complete demolition of this once great company!
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Here's an article that explains some of the research into how insurance companies generate customer loyalty. Loyalty requires "high consumer touch," which is hard since insurance is inherently a "low touch" product. But customer service matters big time, across all departments and products.
Companies that cannot convince customers that insurance is not a commodity have no way to differentiate themselves. Differentiating factors come in the form of insurance ecosystems (the bank would be an example of such an ecosystem, if done correctly).
A company that can't handle the basics of claims is doomed.
http://www.bain.com/publications/articles/customer-behavior-loyalty-in-insurance-global-2017.aspx
1YNV has no idea what he/she is talking about. SF is a multi-line insurer with hooks in many American households and every time we suffer a reputation hit customers take business elsewhere.
And it's not just when the customer has a claim, it's anytime they interact with the claims center for any reason, even to ask a question.
And previous poster had it right. You screw up the claims process enough, customers start to doubt you're going to honor their claim when they have one. Customer gone.
That, plus the high premiums, are why customers are leaving.
Jesus I hope people like 1YNV aren't making these types of decisions. If so, no wonder the company is so screwed up.
BTW most customers never have a claim-they don’t view claim service as a significant factor in the purchase equation.
Once again, you're simply wrong. It's strange that you have the audacity to call me naive when you clearly understand so little about the mind of insurance consumers. I certainly hope you're not on the business side, particularly in marketing or ECRM. If you are, you do not belong there.
The truth is that most customers don't make a claim in any given year. So the entire value proposition for an insurance company is nebulous. What this means is that customers are willing to pay for a service that they believe will "make them whole" if they suffer a loss.
For those that do experience a claim and find it to be a nightmare, the value proposition is lost forever. They jump ship. They have experienced firsthand that the service is not worth the dollars paid.
But it goes beyond that. Before they experience firsthand the claims process, they will hear from others: friends, family, acquaintances, companies that handle claims, etc. Insurance companies have a big reputation that precedes them.
So if an insurance company allows the claim process to be compromised, this becomes part of the reputation that customers consume.
If anything happens that makes the customer doubt that the insurance company will make good on their promise to make them whole, that consumer is leaving.
This is why for so long State Farm sold customers (and employees) on the idea that insurance was not a commodity, as it is based entirely on the individual reputation of the company.
Now that I've educated you on how this works, perhaps you'll stop acting like a pompous jack off.
You're welcome.
State Farm charges premium $'s for their products, when people find out they have been getting screwed for years they jump ship. Bad neighbor! Now I tell all my family and friends exactly how they treat their employees, and how express has made claims a nightmare for many customers. Sooo long State Farm. You reap what you sow!
"BTW most customers never have a claim-they don’t view claim service as a significant factor in the purchase equation." Wow! You are naïve. I suggest you have a few conversations with some agents. You know, that is the sale force and the reason you have a job.
Once again your naïveté and lack of knowledge shines through. According to industry data 6% of drivers last year had a collision claim and 2% had a comprehensive claim. Average driver has any type of claim once every 18 years-and that is on the way up due to increased crash avoidance equipment. Customers are much more motivated by price and ease of doing business. Claim service is becoming less important by the day and it’s influence in purchase decision is not top of mind. BTW most customers never have a claim-they don’t view claim service as a significant factor in the purchase equation.
SF Is already passing along expense savings to customers via rate decreases as evidenced by the latest rate reduction filings in AZ, IL and Ohio.
Lowering rates won't save them unless they fix the claims process. The claims process is an insurance company's one and only opportunity to prove to a customer that they are worth the expense. It is the very last area that an insurance company should slash.
State Farm has forgotten the value proposition that it offers consumers.
The bleeding isn't going to stop anytime soon.
SF Is already passing along expense savings to customers via rate decreases as evidenced by the latest rate reduction filings in AZ, IL and Ohio. I would suspect more to come. This action alone will increase retention. Your view of their impending demise is both naive and uninformed.
The press 1,2,3,please hold.... post strikes me as hilarious as I am on the receiving end of those customer calls. However it is right on folks. Claims is getting ripped up one side and down the other by very angry customers, call after call after call. Seems clear that the ones making the decisions on behalf of the company need to sit on the front line for a reality check. Clearly they don’t care and don’t want to hear the truth or that would have been done a long time ago.
Let me assure you the Farm is NOT writing auto policies every day...more than competitors. We can't write enough new business to come close to what is walking out the door. I think this was validated to everyone with year end results. We are failing miserably as an insurance company. The ONLY thing keeping us afloat is company investments. SF did need to make cuts, and build up systems, but the business plan they are going with is sure to take the company down even farther. The only question will be if we can pull it all back up from the depths of Hell.
SF writes more policies however in the last 2 years have lost more policies by a B IG amount than wrote. Lapse/Can has been a concern in the past but now is B IG. Problem is SF made a huge middle management years ago that is B IG salaries and we are passing those salaries onto the customer. Customer is sick and tired of paying MORE for "excellent" service. Because our service is no longer "excellent". Service these days is OK not "excellent". The experienced claims people could have stayed, they basically could manage themselves (virtual is just that) and shared their knowledge of jurisdiction/venue/rules and regs BUT...............NO SF sent the experienced claims people away. Leaving behind just OK people to give "excellent" service. Doesn't work that way.
You must not realize that SF writes more policies in a single day than there are employees in the entire company. Don’t let the door hit you ......
If you would like to settle your claim for $500, please press 1. If you would like to file an insurance complaint, please press 2. If you would like to hire an attorney and sue, please press 3. If you would like human compassion...please press...please hold. Please hold. Please hold. Please hold.
All replaceable by computer robot. Robot make money. Robot faster. Robot smarter. Robot 24 hour. Robot no sick. Robot no raise. Robot no feelings. Robot no love. Robot empty. Robot die.
U R right. Why make employees disgruntled? Why give reason to turn on you. Better off severence agreement&payment not to sue SF in future. Harrassing and firing employees too short sighted. Unwise...
Heard claim reps being told to artificially reduce meds and make lowball offers...isn't that against fair claim practices? Things have to be going really bad financially. Does it then make sense to drive those employees out? Wouldn't that incentivies claim reps to turn on company & help bring SF down. Why risk it?
Can you share how you considered other insurance companies for your policies and what you looked for in other companies. Thanks!