The insurance industry has become digital, and consumers expect their agents to keep pace with technological improvements like digital portals. Policyholders want immediate, seamless, and transparent access to their insurance details and the ability to handle simple transactions easily. These digital solutions empower customers and save time for agents, but they also create digital E&O risk to be managed.
Learn about managing digital E&O risk introduced by policyholder portals and self-service platforms in this blog.
Managing Digital E&O Risk From Self-Service Policyholder Portals
Policyholder portals allow customers to handle simple insurance transactions, like print ID cards, view their policy, make a payment, converse with a chatbot, and submit a claim. And these digital tools are critical drivers of customer satisfaction, especially for digital native consumers and commercial clients who need speed and intuitive systems. Agencies with robust policyholder portals and mobile apps offer a differentiated customer experience.
However, agents must still consider and manage their digital E&O risk that comes from these self-service activities, as the agency may still be held accountable for the outcomes of policyholder actions.
Here are some potential digital E&O risks to manage from policyholder self-service portals:
Misunderstood coverage. If a policyholder requests coverage changes in the portal, like reducing limits or changing deductibles, without understanding the implications of the change, they may end up uninsured or underinsured unexpectedly. When a subsequent claim is denied for lack of coverage, the policyholder may raise an E&O claim.
Policy access does not equal understanding. While policyholders can access and read their policies online, it does not mean they do, or that they understand the nuances of the policy. They may assume coverage exists where it does not, or could misread an exclusion or condition. The policyholder may then blame the agent for failing to explain the policy in full, even when policy documents were available digitally.
Digital communication gaps may exist. Policyholders may take action in the portal and assume it is immediately handled by the agency, but back-end review processes and workflows may differ from consumer expectations. There could be a delay before changes are effective that policyholders do not understand. If a coverage lapse or change is not processed timely, an E&O risk arises from the unclear service level expectation.
Four Ways to Reduce Digital E&O Risk
To reduce digital E&O risk arising from policyholder self-service portals, try these four tips:
Document every action, even self-service portal ones. Be sure all policyholder interactions within the portal are dated and timestamped.
Include strong disclaimers on the portal. Every portal interaction should include disclaimers in clear, user-friendly language, especially policy changes, quotes, and claims actions. The disclaimer should explain next steps and that requests do not equal immediate coverage.
Teach policyholders how to use the digital portal. Don’t assume policyholders know how to use the portal. Educate them during renewals and through periodic campaigns. Offer guidance on when to self-service and when to call the agency for help.
Create digital boundaries. Some tasks should not be handled through a self-service portal. Decide which tasks require agent assistance and block those from the digital portal.
Request Your E&O Quote From the American Agents Alliance Today
Is it time to review your E&O coverage? California agents may request a free quote from the American Agents Alliance today. Make sure your E&O coverage is keeping pace with your exposure.
External Links:
- https://www.forbes.com/councils/forbestechcouncil/2023/05/19/the-changing-face-of-customer-experience-in-the-self-service-economy/
- https://www.insurancethoughtleadership.com/our-partners/your-customer-portal-good-enough
