Throughout Europe, the majority of insurance claims are reimbursed in kind. Well, not exactly throughout Europe. In the Netherlands and Belgium, insurers settle claims in money in 85% of cases. This is a missed opportunity, according to research by CED. Repair in kind can significantly increase customer satisfaction and reduce costs. Provided it is handled properly.
On average, 60% of claims in Europe are handled in kind. In the Benelux, however, insurers are often remarkably committed to financial compensation as a standard solution.
This is remarkable because research shows that customer satisfaction is highest when the insured is not financially compensated for the claim, but gets it repaired . This, after all, saves time and simplifies arrangements.
Managing new risks
So why are insurers often still cautious in this area? "I think a lot of insurers are shying away from the new risks that arise when you settle a claim in kind", says Robin Roest, director of the CED Repair division. "And you do indeed have to manage these risks well. If a reinstatement isn’t properly executed and extra work is needed, you incur more costs and the customer is less satisfied. Our research shows that you don't have to be concerned about this aspect and that it is easy to manage.”
Three guidelines for successful repair
In a whitepaper following the study, CED identifies the three elements needed for successful repair in kind. "It starts with a watertight quality control system for the entire chain, from screening repairers to monitoring and evaluating the repairs in kind? carried out. It is also important that you offer a personalised service and set up a smart platform which facilitates the work of all involved, whether claimants, claims handlers or repairers.
European quality leader
The white paper is based on CED’s extensive experience with the Repair platform. For years, CED has strongly believed in the benefits of repair in kind. Several large clients in the Netherlands have, in the meantime, experienced the benefits themselves - in the form of higher levels of customer satisfaction and lower costs per claim. The quality improvement that has accordingly been achieved for clients was one of the main reasons why Robin Roest, director of the CED Repair division, was selected as European Quality Leader 2018 in Paris, earlier this year.
Download the CED Whitepaper here.