What is tNPS, and how can insurers boost it?
March 6, 2023
Transactional Net Promoter Score, or tNPS, is a way for insurers (and other businesses) to measure customer satisfaction. After a customer interacts with the insurer, they are asked to provide feedback. The results are a way to better understand how to improve customer experience and, in turn, enhance retention.
Why tNPS matters
An insurer's tNPS indicates how likely their customers are to recommend it to others, based on their experience of the taking out a policy, filing a claim, asking a question, renewing their policy, and more.
Loyalty and retention are key priorities for insurance companies, which operate in a traditionally high-churn market of tight margins. Measuring and understanding customer experience help insurers understand which customer touch points are working, and which need improvement.
How is tNPS calculated?
Customers are asked the question: “How likely are you to recommend the insurer to a friend or colleague?”
They can answer based on a scale of zero to 10. The score reflects their overall satisfaction with their experience and their feelings towards the insurer.
To calculate the overall score, subtract the percentage of detractors from the percentage of promoters.
What is a good tNPS score?
In the insurance industry, a score of 20 or higher is considered good.
Which customer touchpoints have the greatest impact on tNPS?
After a customer purchases an insurance policy, the next ‘touchpoint’ is typically filing a claim. This moment, up until the claim in resolved, has a significant impact on the overall customer experience.
Our recent research into customer expectations of the claims process shows a major disparity between customer expectations and the reality of how long insurance claims currently take to process. One in five (21%) insurance customers expect claims to be resolved within hours. However, 43% of customers responding to the survey waited over two weeks for a claim to be resolved, across multiple insurance lines.
How can tNPS be improved?
A low tNPS tends to be caused by one or two sticking points that are driving customers away. The most common causes of a low score are expensive premiums, lack of claim acceptance, poor communication and slow claims processing.
By honing in on the issue causing complaints, it is possible to quickly boost tNPS.
How automation boosts tNPS
Automation can help resolve many of the issues that lower tNPS.
Automation can reduce the cost of a claims journey by as much as 30%, according to McKinsey. With automated claims processing, handlers spend less time on each claim. Despite this, insurers can be sure that the claim data has been processed with high levels of accuracy, and without bias, which reduces the number of complaints and challenges. These savings can be invested in lowering premiums.
Fairer and more accurate claims processing
When claims processing is automated, claims teams can process large volumes of data at scale, at speed, and with fewer errors or biases than a human. Insurers and customers can be assured that the fairest possible outcome has been achieved.
Average human accuracy levels are around 80%, but we have achieved 98+% accuracy. This reduces operational costs, waste and leakage from human error is reduced. Fewer claims need to be reopened and there are fewer disputes.
Faster claims processing
Customers today are used to speed and simplicity from their service providers, whether they are hiring a car to contacting their bank. They expect the same from their insurers, but are unlikely to receive it - unless the insurer is using automated claims processing.
Faster, more accurate claims lead to higher customer satisfaction. Our technology is proven to directly improve insurers' tNPS and client retention.
A number of leading insurers are now using our technology to empower rapid, intelligent claims decisions. We have reduced the average time it takes to settle a claim from 30 days down to less than 24 hours. In many cases, settlement is instant.
Sprout.ai partnered with Zurich UK, integrating cutting edge, data-led technology with their existing systems and processes to enable end-to-end property claims automation. The partnership has boosted TNPS by +100, with increased consistency, confidence and clarity.
Better communication and customer service
Our technology enables claims handlers to focus on customer service, rather than the lengthy processes of collecting and processing claims information, reviewing policy terms, overseeing payments, and updating customer information.
How Sprout.ai works
Natural language processing (NLP) and patented optical character recognition (OCR) technology can rapidly extract all relevant information from any type of document, from PDFs, to images to freeform notes - even if it is in handwritten Japanese.
Relevant data is contextualised immediately, then validated against the policy contracts and schedules to check if the claim is covered under the customer’s specific policy.
Limits, excesses, inclusions and exclusions are automatically calculated.
Our technology also helps check for fraud, reduce waste or abuse, and identify outliers.
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