Seven phrases to avoid when settling claims
When settling claims with attorneys, it’s prudent that clients feel they’re being paid a fair amount. That means claims professionals must be good negotiators.
Yet, many claims professionals inadvertently send the wrong message to their clients, Carl Van, president and CEO of International Insurance Institute Inc., said during the Canadian Independent Adjusters’ Association’s (CIAA) 4th annual Canadian Claims Summit.
Van provided an example of a message he monitored that was delivered to a client by a claims professional. Here’s an excerpt:
“Mr. Jones, I had a chance to take a look at your file, and came up with a value of about $30,000, which we feel is fair. I would be willing to make an initial offer of $30,000. I can only pay $3,000 for your lost wages.
I checked with my supervisor about bumping up our offer, and he told me to throw in another $500.”
Though it seems innocuous, much of the email’s language sends the wrong message to clients, explained Van. Here’s why.
1. Had a chance/took a look at
There’s no doubt claims professionals are busy. (Case in point, the record-setting 23 Cat events tallied across Canada last year, or the rapidly rising litigation rates in Alberta auto.)
But when claims professionals say they’ve ‘had the chance’ to ‘take a look at’ a client’s file, they’re implying they didn’t take the necessary time to understand the case. It also suggests their client’s claim is unimportant.
This language will raise red flags for clients who are dealing with deeply serious situations.
“’Took a look at?’ That’s how hard you worked on this file?” said Van. “That doesn’t sound like you worked very hard at all.”
What should claims professionals say instead? Try phrases like, “I thoroughly reviewed this case, I carefully went over the numbers, I double checked everything,” Van suggested.
Such language will make clients feel as if they’re in competent hands. It also lets claims professionals take credit for their hard work.
2. I feel/I think
Many people use the statements ‘I feel’ or ‘I think’ to express an objective truth. But for claims professionals, using these statements ruins your credibility by making you sound uncertain.
For claims payouts, which are thoroughly priced, this muddles communications between an adjuster and their client.
“[You’ve] got to stop using these words; there’s no alternative, just stop using [them],” Van said. “Your claim is worth $30,000. I’ve evaluated the case, and this is a fair settlement figure. Not ‘I feel,’ not ‘I think;’ it is.”
3. Offer
When any negotiator uses the word ‘offer,’ they’ve essentially told the client there is more money on the table.
In a claims negotiation scenario, this opens up the adjusters to grievances from attorneys and jurors, who might suggest higher settlements.
“There’s a very big difference between ‘John, we’re going to offer you $30,000,’ and ‘John, your claim is worth $3,000, and I’m going to make sure you get every penny of that,’” Van said.
Other problematic words or phrases include ‘initial,’ (for example: ‘this is our initial price/settlement’) or ‘at this time,’ (for example: ‘this is what your claim is worth at this time’). Both imply there’s a better, fairer settlement price available.
4. Came up with
Van said nearly half of claims adjusters in calls he’s monitored have told clients they ‘came up with’ a settlement value.
But when adjusters say this, they’re making customers believe those figures are arbitrary.
“Even appraisers are writing ‘Okay, well, I estimated your house, let me show you what I came up with,’” said Van.
Professionals should be using language that emphasizes they’ve carefully evaluated the price.
For example, “’I’ve analyzed this; let me go over the result of our analysis,’” said Van. Or, “’I want to make sure you get what you’re entitled to, so I carefully reviewed this. I walked over every single square foot twice, just to make absolutely sure I didn’t miss a thing.’”
5. Willing to
Many clients have a poor perception of the industry. They feel companies search high and low for ways to deny payout when a client’s had an accident.
This message is only reinforced when claims professionals tell clients they’re “willing to” pay them what they’re owed.
“There’s a very big difference between, ‘Maureen, we’re willing to pay $30,000, and ‘Maureen, ‘you’re entitled to $30,000,’” Van said. “When you tell someone, ‘We’re willing to pay you,’ the words ‘willing to’ mean ‘I’d really rather not.’”
6. Only
Similar to offer, Van said ‘only’ is among the worst words a negotiator can use.
When you tell clients you’re only able to pay them a certain amount, you are telling them you don’t think it’s enough money.
“You don’t tell people ‘we can only pay the actual cash value.’ You tell them we’ll give them 100% of the actual cash value. You don’t tell them ‘we can only pay 30 days for a rental car.’ [You tell them] ‘we’ll pay the entire 30-day rental car period.’”
7. Throw in/bump it up/about
Adjusters paint the picture that their insurer is throwing money around when they tell a client they will ‘throw in’ or ‘bump up’ their claims settlement.
“Every good negotiator will tell you, you want to make it sound difficult. You don’t want it to sound easy,” said Van.
So, telling a client their claim is worth ‘about’ a certain amount, (i.e. ‘your claim is worth about $30,000’), makes the figure sound arbitrary, or as if insurers are throwing money around.
“If I’m going to have to give you more money that’s going to have a reason,” Van said.
Feature image by iStock.com/ljubaphoto
