A significant shift is underway, as insurance carriers are increasingly expanding upon the traditional loss control survey and adopting service-oriented approaches driven by the growing recognition of loss control’s impact on customer relationship and retention. Historically, workers' compensation insurance carriers have leveraged service plans to manage risks effectively and support injured employees. This approach includes a broad spectrum of services, such as safety training, ergonomic assessments, and health management programs. These initiatives not only reduce the frequency and severity of claims but also foster a culture of safety and well-being among employees.
In contrast, commercial property & casualty insurance carriers have traditionally relied heavily on surveys and inspections to evaluate potential hazards and mitigate risks. While this method is effective in identifying and addressing structural and environmental vulnerabilities, it often lacks the proactive engagement that characterizes service plans.
However, the insurance industry is realizing that a proactive service-based approach can significantly enhance customer satisfaction and retention. By offering value-added services at regular intervals, property & casualty insurers can better meet the evolving needs of their clients and differentiate themselves in a competitive market.
Benefits of a Service Plan
Client Retention: Service plans have a direct and positive impact on policyholder retention. One of RCT’s customers’ internal analyses demonstrated that when clients are engaged with three loss control touchpoints, the average retention rate grew by 25%. Regular interaction and personalized support are key to relationship-building and retaining clients in a competitive market.
Claims Reduction: Service plans enable insurers to gain deeper insights into policyholder’s risk factors and uncover hidden risks early in the process. By helping policyholders manage those risks proactively through multiple, and varying service touch points, insurers can reduce the likelihood of costly claims.
Premium Optimization: Offering tailored premiums based on individual risk assessments through your service plans helps ensure that policyholders receive the right coverage, and improves the flexibility to competitively price policies.
In a nutshell, by adopting a service plan approach, Underwriting and Loss Control can significantly impact the bottom line. The benefits of a service plan are not limited to the carrier side only, but additionally helps build a collaborative relationship with the policyholder with numerous benefits.
Service plan’s appeal to the Policy Holders
Business Continuity: By working with policyholders to proactively manage risk, insurers can help clients reduce the likelihood of an incident that might impact business operations.
Financial Benefits: Better understanding the client’s business and helping to improve their risk profile provides the opportunity for policyholders to benefit from insurance offerings that are tailored to their business needs.
The evolution of the traditional survey into a service plan focused approach greatly impacts the policyholder experience. With a service plan, policyholders are not merely purchasing insurance coverage; they are entering into a partnership focused on mutual success and well-being. This shift in perspective transforms the insurance relationship from transactional to collaborative, enhancing customer satisfaction and loyalty.
