Asking the right questions

Research carried out in the second quarter of 2002 discovered that insurance companies are spending millions of pounds gathering unnecessary information.

During this period, researchers recorded the number, type, sequence of questions asked by insurers when dealing with quotation requests.

In addition, the time taken for each stage of the call was monitored.

The survey discovered all sorts of spurious questions were being asked for car insurance - for example: "Can you tell me the nature of your employers business?" or: "How many children under 15 do you have?"

In most cases, it was discovered that underwriters no longer used this type of information for assessing and pricing risk. So, the average phone call time could be reduced by 10%, simply by asking the right questions in the right sequence.

The combination of slow scripting and poor training adds another 10% to15% in call time - costing money and increasing queue times and customer frustration.

The average call time could be reduced by up to 25%. Multiply this across the millions of calls companies receive every year and it costs more than £25m every year.

This cost is ultimately reflected in the level of premiums.

These conclusions were the result of a secret shopping programme conducted between 1 April and 30 June this year by customer service performance measurement company Direct Excellence.

Calls were conducted using a variety of customer profiles to reflect different risk categories and geographical distribution patterns.

The table opposite shows just two of the 60 parameters that are measured to gain company-by-company comparative data - time taken to produce a quote and its cost.

The data gathered provides executives with information to help them improve customer service and conversion rates, and comply with regulation issues.

For further information call 0117 905 5346 or email info@directexcellence.co.uk.
Average responses for commercial and personal motor inquiries