Question

A customer service representative (CSR) receives a call from a customer with a homeowners policy. The customer has lost her job and is starting a small business in her home selling Internet advertising. The customer wants to see what she can do to reduce her premium until she can establish her business. Which one of the following would be the best way for the CSR to exceed the customer's expectations and promote customer satisfaction?

A. Review the homeowners policy and find ways to reduce the premium through coverage cuts and an increased deductible
B. Create a checklist of ways the homeowners policy can be changed, with corresponding premium reductions, to review with the customer
C. Explore with the customer the loss exposures of her new business, risk management techniques that might apply, and ways to offset the cost of any extra coverage required
D. Suggest replacing the homeowners policy with a policy from another insurer that might offer a lower rate, even though that insurer's claim service is not considered good

Answer 1

The CSR can exceed expectations by reviewing the customer's new business risks and adapting coverage to both meet her current needs and manage potential costs.

This forward-looking approach ensures appropriate coverage while also considering the customer's current financial situation.

Step-by-step explanation:

The best way for a Customer Service Representative (CSR) to exceed the customer's expectations and promote customer satisfaction in this scenario is to explore with the customer the loss exposures of her new business, risk management techniques that might apply, and ways to offset the cost of any extra coverage required.

This approach is not only about reducing the premium temporarily but also about ensuring that the homeowners policy remains adequate and relevant to the customer's changing situation.

Moreover, the CSR should consider potential moral hazard that can affect insurance decision-making and focus on long-term customer relationship building, which goes beyond just cutting costs.