"People think that the insurance company must pay as soon as an event occurs"

The insurance sector is one of the areas where direct contact with customers is established and trust plays an important role. In this regard, customer experience and service quality are of particular importance. Nevertheless, various misunderstandings arise from time to time between insurance companies and customers. For this reason, as Valyuta.az, we interviewed Turane Akhundova, Deputy Executive Director of the Public Union "Azerbaijan Insurers Association", on customer satisfaction, key problems in the insurance sector, and solutions.

— Ms. Turane, first of all, let's talk about aspects that satisfy customers in insurance companies. What do customers appreciate in insurance companies?

— Customers particularly value prompt service, transparency, and being informed at every stage of the process. When an incident occurs, a clear and simple explanation of all stages — from the moment of contacting the insurance company to the completion of the payment process — directly affects customer satisfaction.

— In which cases does dissatisfaction arise most often?

— Based on my 18 years of experience, I can say that policyholders are most often dissatisfied with the results of the assessment and lengthy procedures. These circumstances do not always depend on the insurance company. For example, in traffic accidents, the fact of the incident must first be confirmed by the relevant authority. After that, damage assessment is carried out. When the extent of the damage is large, the investigation and assessment process may take longer, which in some cases causes customer dissatisfaction.

— What mistakes do customers most often make when an insured event occurs?

— One of the most common mistakes customers make when an insured event occurs is failing to notify the insurance company in time and submitting the required documents late. This causes the investigation and assessment process to be prolonged. Another important point is that some citizens do not know which authority to contact when an incident occurs. In such cases, it is recommended to contact the insurance company first. The insurance company directs the customer to the relevant authority and helps to conduct the process correctly.

— Sometimes policyholders express dissatisfaction about the payment process being delayed. In which cases does a customer have to wait for payment, and the insurance company cannot pay immediately?

— To make an insurance payment, first of all, official documents confirming that the incident is an insured event are required. These documents are provided by relevant state authorities. After that, damage assessment is carried out and the payment process begins. As long as the documents are not submitted or the assessment process is not completed, the insurance payment cannot be made. Of course, as in any field where the human factor exists, certain delays and technical problems may occur in the insurance sector.

— If there is a clear procedure, why do customers expect immediate payment when an incident occurs?

— I think this is due to lack of information. People believe that as soon as an incident occurs, the insurance company must pay immediately. When expectations do not match the actual procedures, the policyholder gets the feeling that their rights have been violated. In reality, the insurance process consists of several stages. After an incident occurs, it is investigated whether it qualifies as an insured event, relevant documents are collected, and damage assessment is carried out. After these stages are completed, the insurance payment is made.

— How do you assess the level of trust between insurance companies and customers today? After all, there are those who say: "I do not trust insurance companies"...

— I would not say that there is a serious distrust of insurance among people. Statistics show that year after year, both interest in insurance and demand for voluntary types of insurance are increasing. In global practice, trust in insurance has also been built over time. As people see the benefit of the service, confidence in this field increases. The greatest dissatisfaction usually arises when the customer's expectations do not match the actual procedures.

— Which types of insurance cause the most dissatisfaction, and why?

— Most dissatisfaction arises in relation to compulsory automobile insurance. Because insurance companies calculate damages according to the market value of the car and average market prices. Some drivers expect their car to be repaired at an official service centre and all costs to be covered. However, compulsory insurance does not provide such broad coverage. Individuals who want broader coverage and the possibility of repair at an official service centre can use voluntary automobile insurance – "casco". Therefore, dissatisfaction arises when customers' expectations differ from the coverage of compulsory insurance.

— What changes have occurred in customer service in the insurance sector in recent years?

— Customer expectations such as prompt service, a transparent approach, and continuous information have accelerated significantly in recent years due to the digitalisation process. For example, previously, documents related to traffic accidents were submitted in paper form. Currently, there is integration between the State Traffic Police and insurance companies, and data is transmitted electronically. This significantly shortens the claims settlement period.

— Looking at statistics, interest in life insurance has increased.

— Yes, but this does not mean a decrease in interest in non-life insurance. On the contrary, interest in non-life insurance types is also quite high. For example, there is a growth dynamic in comprehensive car insurance – casco insurance. Particularly, at the end of last year and the beginning of this year, parallel to the increase in the import of new cars into the country, growth in automobile insurance was also recorded. People show interest in voluntarily insuring the new cars they purchase. The main point here is that comprehensive car insurance is not compulsory. Nevertheless, people prefer voluntary insurance to protect their property, especially their cars, from financial risks.

— In your opinion, what changes should be made first to increase customer satisfaction in the insurance sector?

— To increase customer satisfaction, greater automation and digitalisation are essential. The automation of processes, simplification of procedures, and acceleration of services create a more convenient environment for both customers and companies. Previously, to obtain an insurance policy, a citizen had to physically go to the insurance company and submit documents manually. Today, many types of insurance can be obtained online without leaving home. The same situation is observed in the claims settlement process. When an incident occurs, in many cases, the customer no longer needs to go to the company. Applications are received online, in some cases employees visit the scene of the incident, and for some damages, the entire process is managed remotely.

— What steps do insurance companies take to win back dissatisfied customers?

— This, of course, depends on the approach of each insurance company. In general, insurance companies are interested in retaining and winning back customers. Because the insurance sector is built on direct customer relationships. The main goal of companies is to gain the customer's trust and establish long-term cooperation. Therefore, they try to restore relationships with dissatisfied customers. Actually, there is no issue of individual approach here. A customer may be dissatisfied with a service today, but tomorrow, thanks to better service and proper communication, they may use the same company's services again and be satisfied. Insurance companies should strive to increase customer trust through quality service and prompt communication.

— For which types of insurance is the payment process more complex?

— More complex payment and settlement processes are mainly observed in large-volume and high-risk types of insurance. For example, aviation and marine insurance fall into this category. For these types, both insurance sums and the scale of risks are much larger. When such incidents occur, the investigation and settlement process is also carried out more complexly. Because this is not just an ordinary incident, but processes that create a significant financial burden and involve multiple parties. For this reason, expert examination, documentation, and legal procedures are carried out more extensively. Therefore, the settlement of such incidents is longer and more complex. This does not mean that ordinary traffic accidents or property insurance do not involve complexity. In some cases, additional investigation may also be required for these incidents.

— For what reasons do insurance companies most often refuse to pay when incidents occur?

— The main reason for refusal to pay insurance claims is that the incident is not covered by the insurance coverage. That is, not every incident is automatically considered an insured event. It is important that the incident falls within the scope of coverage specified in the contract. If the incident does not relate to the risks provided for in the contract or falls under the list of exclusions, the insurance company may refuse to pay. Therefore, it is very important for the customer to be familiar with the terms of the contract in advance.

— Sometimes customers are dissatisfied that the insurance company does not visit the scene of the incident.

— Many customers believe that as soon as an insured event occurs, a company representative must come to the scene. In global practice, this approach is no longer widely applied. For example, if in a traffic accident the State Traffic Police has formalised the incident and drawn up a report, this already serves as the main legal document for the insurance company. In this case, a separate visit by the insurance company to the scene of the incident is an additional waste of time.

— You gave examples based on automobile insurance. It is interesting, in which cases does dissatisfaction regarding the assessment of cars arise?

— One of the main points causing dissatisfaction relates to the assessment of spare parts. For example, if the car was manufactured in 2011, the spare parts for it are also determined according to that model and year of manufacture.

This is not about making payments at old prices. Simply, the current market price of the spare part corresponding to the car's year of manufacture and condition is taken into account. The main problem, however, is more related to information. When the customer is explained in advance the principles by which the assessment is carried out, misunderstandings are reduced.