The third and final blog in our series looking at the Future of General Insurance conference focuses on claims. It follows a session which included senior claims personnel from AXA, LV=, RSA and Zurich.
- Escape of water
- Indemnity spend (buildings having significant upgrades, which costs more to replace / repair)
- Suppliers (not attempting to rein in costs)
- Expenses (large claims teams spread across various sites)
- Staffing. The volume of personnel required, such as loss adjusters, may diminish with new technologies that lets insurers view damage and ascertain impact (e.g. to a home after flooding). Scanning and sending photographs is already being used, and players like WeGoLook are taking this to the next level. Is there still a need for a physical inspection as a matter of course? The implication is probably not.
- Reporting. Human interaction, of course, is still key in the claims reporting journey, but repeatable processes will be completed more and more by way of automation (e.g. payments processing, arranging garages for repairs). Artificial Intelligence players like Tractable are emerging in this space.
- Data and processing. Having access to the right infrastructure and data is key to streamlining the claims process. Simple claims can be completed in as little as three seconds — as Lemonade proved this with a claim for a fur coat, which included making the payment.
- The customer journey. Claims is still an emotive journey, which means full automation is unlikely. But that doesn’t mean insurers don’t have work to do on their customer journeys. Even those who profess to having an amazing user flow, backed up with high NPS scores, must realise customers ultimately have a very low expectation in relation to claims journey experience — the bar is set really low. Even those who think they are doing well have room for improvement, and this is where some of the design thinking and customer-centric based approaches of startups could pay real dividends.
- The customer need. On a related note, insurers also need to look at the whole claims experience for a customer. We think it’s FNOL (first notification of loss) to payment, but for the customer it goes beyond that — for example, what is the impact to my no claims bonus, and what effect does that have on renewal premium, as well as the claim itself.
- They trust you
- They need you
- They like you
- You make their life better
- They get the best value
Ultimately, advanced technology will drive efficiencies in the claims journey, and could create some new avenues and experiences to wow consumers. With the costs and speed of claims-related tech is moving fast, however, companies who linger do so at their peril.
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