As an MGA or insurer, a poor claims process is the fastest way to lose loyal customers – and damage your brand. Yet, too many still get it wrong.
In 2025, the UK consumer champion, Which?, launched a ‘super-complaint’ against the home and travel insurance sectors relating to what it described as “dismal service” during the claims process. Meanwhile, the second half of last year saw a sharp rise in ombudsman referrals for insurance, with seven out of 10 relating to claims.
The message is clear: customers feel let down by insurance companies’ failure to handle claims efficiently, communicate transparently, and ultimately provide the protection promised during the sales process. The result is customers who are more likely to complain, less likely to renew, and more likely to tell their friends and family about it afterwards.
That doesn’t mean insurance companies should wave through every claim without a thorough assessment. But it does mean striking a better balance between identifying erroneous or fraudulent claims and ensuring valid and authentic claims are dealt with swiftly and transparently. The key is better communication.
And with the tools and technologies available today, it’s possible to ensure customers feel more informed than ever during the claims process, without increasing headcount or team time spent handling claims. Here are some fast changes that will make a big difference.
Ease customer communication pain points
Customer losses don’t always happen at the most convenient times, and when they do, policyholders usually want to deal with them quickly, while all the relevant details are front of mind. In other words, they don’t want to wait for phone lines to open or start typing detailed emails while they’re already stressed.
While some claimants want to speak to a real person – and that should always be an option – self-service FNOL is the ideal way of removing friction from this first interaction and making it clear what is required of the customer from day one.
With a self-service claims portal, customers can log their claim at a time that suits them, using an intuitive interface on their laptop, tablet or phone. This can be tailored even further based on customer preferences; for example, with Insly’s claims portal, policyholders can input details via an AI chatbot conversation, invoice upload, or name lookup, while the system pulls known information from their policy.
So, the customer leaves the interaction feeling confident their claim is underway, and clear on the next steps.
Don’t leave customers in the dark
Customers repeatedly complain about the time they spend following up claims and chasing for updates, with research by Which? finding that 28% of claimants felt their insurer’s actions negatively impacted their time available to do other things. And it isn’t just time lost but also about the accompanying stress, with the same research finding that 50% of customers felt anxious as they awaited the outcome of a claim.
Yet, there is a simple fix: ensure customers are updated regularly on their claim status – good or bad. Customers today have come to expect real-time updates from ecommerce providers such as Uber and Amazon on the status of their order or service. Insurance companies should follow their lead.
Delays are sometimes unavoidable, whether due to investigations, third-party involvement, or requests for additional information, but customers need to know what is happening. A simple update explaining the reason for a delay and next steps can significantly reduce anxiety and build trust, even when the news is not what the customer wants to hear.
With Insly’s claims portal, MGAs and insurers can give customers real-time claims visibility, the reason for any delays, likely timescales, alongside expected payout and full claims history. So, they always feel in control – and stress levels are kept to a minimum.
Empower claims handlers
While straightforward claims can now be approved through straight-through-processing (STP), in more complex cases, claims handlers still play a very important role. Claims professionals are not just assessing losses; they are managing expectations, providing reassurance, and helping customers navigate an unfamiliar process.
When this is the case, claims professionals must have access to a single source of truth regarding claim status, so they can communicate effectively and empathetically with the customer, and then make a fast, well-informed decision, even when dealing with a high volume of claims
This is where the right claims platform comes in, ensuring claims handlers have the same interface and information as their customers, alongside tools and functionality to aid decision-making.
Insly’s claims portal includes an AI layer for claims handlers, which provides a recommendation – approve or reject – alongside a confidence level and the reasoning, based on the policyholder’s specific terms and conditions, relevant legislation, and any internal rules. So, customers always get the full picture.
Communication = claims success
As MGAs and insurers focus on improving speed and accuracy of claims, it’s easy to overlook the importance of communication. But that is arguably the most important part.
Customers expect the same level of transparency and communication from their insurance as they have elsewhere in their lives. That means reducing friction, keeping customers informed, and equipping claims handlers with the right information and tools to put the customer in control.
When customers understand what is happening, why decisions are being made, and what comes next, that breeds confidence and loyalty. And in a market where differentiation is harder than ever, that is critical to getting ahead.
