Two-way symmetrical communication management to foster relationships with clients in the South African motor insurance sector during the claim stage

Abstract

The focus of this study is on the South African insurance landscape and the operations of the Motor Insurance Claims Department of Company X. Two parties are present in this communication process: the first is the claims administrator; that individual who manages clients’ claims, communicates with clients on how the process works and what is needed from them, and provides feedback on whether their clams have been accepted or denied. The other party is the client. The research focuses on the nature of the two-way symmetrical communication model within the motor claims insurance sector between the above-mentioned parties to foster and maintain long-term, mutually beneficial relationships. The essence of this research is to establish if and how the two-way symmetrical model can be implemented in order to maintain clients and to prevent them from cancelling their policy with the insurer. A qualitative research approach was used for this study in the form of semi-structured interviews with three managers and seven claims administrators of the Motor Insurance Claims Department. After data analysis, it was clear that the claims administrator is in control of the communication with clients during the claims process and the only role clients play in this process is to supply documentation. Most of the time, clients do not understand their policy wording or terms and conditions. This lack of understanding inevitably leads to conflict. It is therefore important to recognise that this relationship does not build on the two-way symmetrical communication model where both claims administrators and their clients have equal opportunities in the communication process. The clients have little control or voice in the communication process. The Motor Insurance Claims Department does not allow its clients to voice their opinion or have any other input in the claims process. At present, owing to the one-way flow of communication, it is clear that there is no relationship between the motor claims administrator and Company X’s clients. It is evident that the Motor Insurance Claims Department needs to investigate and properly understand its clients’ needs and build dialogue with them based on the data received from the research.