ASSESSMENT OF CHALLENGES AND PROSPECTS OF MOTOR CLAIMS MANAGEMENT INAFRICA INSURANCE COMPANY S.C.

Abstract

The tragic effects of motor claims management is a nuisance to the insurance business. This study analyzes the challenges and prospects of as well as customer satisfaction level of the motor insurance business account in general and motor claims handling and management in AIC by considering the specific objectives of identifying the claims handling processes affecting customer experience and satisfaction. At the same time the study evaluated motor claims handling procedure and identified the challenges directly related in customer satisfaction and confidence on AIC and its products delivered. The study further assessed the prospects of installing motor claims management that alliance with its strategic plan in lieu of prevailing claims handling procedure. The study employed cross-sectional survey design in which 315 external customers selected randomly and 88 internal customers (i.e., staffs) involved in the claim process were the subject of the study by administering specially designed questionnaires. Besides, three FGDs and six KIIs were carried out to get an in-depth insight in the evaluation of service delivery according to the missions and strategies of AIC. The results obtained suggest that the prevailing claims handling process is a major problem area affecting customers’ satisfaction that need to be overhauled. The clients of AIC believed that lack of updated and clear claims management manuals and procedures, lack of skilled, knowledgeable, experienced and committed claim staff and in claims service are the key challenges in AIC. More importantly, centralized claims management, external and internal effects of immoral behavior of the clients, surveyors, garages, spare part dealers, and internal employees along with sluggish interdepartmental/work units/ communications towards claims management were the major issues in the company. Poor compliant handling system of the company, delay of claims management from notification up to settlement to claimants, lack of intensive standard training for claims staff, and lack of work standard for internal employees, external surveyors and garages decelerates the rate at which quality service is delivered in the company. Thus, it’s recommended based on the finding that the AIC should create an effective, transparent and customer-oriented means to standardize the services, educate the customers, decentralize the claim unit and make use of the standard monitoring mechanism as per the strategies and policies of the company so as to maximize the level of satisfaction of motor claimants.