How to Overcome the Flaws of Self-Reported Data and Solve Consumer Complaints
How can insurance companies manage risk better?
“What is the likelihood of an insurance-holder dying within a certain time frame?” In order to determine life expectancy, an insurance underwriter will typically factor inputs such as age, health, and personal demographics. However; some insurance companies will also factor in behavior.
In behavioral science, one of the cheapest and most popular methodologies for data collection is self-reported data. This information may be obtained in questionnaires or surveys. But, self-reported data has its flaws:
1) Honesty/ Image management- Participant honesty may vary for sensitive subjects such as drug/ alcohol use.
2) Introspective ability- Participants usually view themselves differently than how their peers view them
3) Understanding- Participants may vary in understanding of particular questions.
4) Rating scales- Some people are ‘extreme responders’ who like to use the edges of the scales, whereas others like to hug around the midpoints and rarely use the most outer points.
5) Response bias- Individuals may have a tendency to respond a certain way, regardless of the actual evidence they are assessing.
In order to overcome the flaws of self-reported data, some insurance companies are using social media analytics for validation of self-reported data. Insurance underwriting may be the next social-media frontier . In 2016, 78 percent of U.S. Americans had a social media profile. Because this information is readily available, some insurance companies have already started using social media analytics to determine interests, hobbies, and other demographic information of insurance-policy seekers. For example, social media can validate claims such as drug and alcohol use in self-reported surveys.
Even though social media data is readily available, it does not mean that it is easy to process. Because social media data is unstructured, most data analytic platforms are not able to process social media data as an input. As a consequence, some people resort to reading over the comments manually and attempt to keep track of buzzwords, sentiment, and detect trends in the data. With so many things to keep track of, it is difficult to analyze social media accurately. Without the right equipment, it is often a laborious and excruciating task to analyze the data.
Because time is money, innovators have sought ways to streamline this process. Stratifyd Signals was developed to help you overcome the flaws of self-reported data. Signals helps leverage social media data in different ways, including voice of the consumer and competitor analysis. (For other blogs about insurance, please read “Inside an Insurance Company’s Social Media Game” and “Auto Insurance Meets its Critics”)
Let’s use Signals to compare the data sets of United Healthcare and Humana.
United Healthcare
By using the buzzword widget, it is quite clear what insurance policy-holders deem important.
The most common buzzwords were United Healthcare, healthcare, customer service, every time, and phone number. By looking at the right, the sentiment of the buzzword is revealed. With the words of United Healthcare and customer service being marked red for a negative sentiment value, there an indication of an underlying problem.
Customers hate call center experiences when they have to speak to several people and still do not get their problem resolved. If customers were able to experience a one call resolution to their dilemmas, they would be much happier. Compliance to the law is an absolute must. With this comment being publicly accessible, it would be easy for a competitor to take this consumer comment and share it. A wise practice would be to have a legal specialist in the call center to explain legal questions to customer. It should not take multiple supervisors to explain the same problem.
Actual Customer Comment
Having an inaccurate provider directory is a sure way to lose customers. Customers understand the difference between in-network and out-of-network medical costs. When customers search for an insurance provider, one of the top reasons they buy insurance from a certain company is the medical professionals that are covered in-network. Dealing with inaccurate information on a provider directory is unacceptable.
Humana
Once again, the buzzword widget reveals what is important to policy holders. Let’s look at “Silver Sneaker” and “breast cancer”.
Out of all the things Humana covers, customers talk the most about the Silver Sneaker program. By covering the costs of gym membership for those 65 and older, Humana provides an incentive to its customers to be active and healthy so they can decreases healthcare costs. People who are healthy and active are less likely to need medical attention.
Breast Cancer. By dropping insurance coverage in a customer’s time of need is not compassionate. Under Obamacare, there are stated conditions under which an insurance provider can drop coverage. “Health insurance can only drop you during your policy year for non-payment, fraud, or misrepresentation. You can appeal any insurer decision. As for your specific issue, we haven’t heard of it. Hopefully others will comment below and post similar experience. People should note what state are in and what insurer they are using.” Customers make payments to insurance company like writing raining day checks. These checks go into an account so they can be used in desperate times. Cancellation of service at this time is the definition of cruelty. True, it may be less expensive to lose the one consumer, but it might cost potential customers.
Key Takeaway
When selecting an insurance company, customers want not only someone to listen to their stories but also show compassion. Consumers that feel appreciated by their insurance provider are more likely to be loyal. If the company does not have the best plan for a customer for a certain condition, it should refer that customer to another insurance provider. After referring customers over to another insurance provider, that insurance company will begin to refer clients to you. By building up a referral network, customers receive compassion and you gain loyal customers.
95% of customers share bad experiences with others (Zendesk)
Why risk more than you need to as an insurance company? You can reduce the risk of lost potential consumers by providing a great consumer experience.
Though data analytics, insurance companies can overcome the flaws of self-reported data and resolve customer complaints. By understanding customers on individual basis, you can provide customers with more custom-made insurance plan that will meet their needs and mitigate the risks you accept by covering them. By listening to the voice of the customer and conducting competitor analysis, your business will prosper and grow.
Would you like to see how Stratifyd Signals data analytics solution can help your organization find customer insights? Visit us on http://www.stratifyd.com/ for more information. If you would like a self-service trial account, please chat with us or email webcontact@stratifyd.com. We’d love to work with you!
Would like to check out these dashboards? Here are the links to the United Healthcare and Humana dashboards in Signals.
