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Technology has disrupted almost every industry. The banking sector was the last sector (so close to ours in Insurance) that delivered technological and process transformation that benefited customer experience. Insurance is next in line, as we are lagging behind and there is momentum for true transformation and change. So, why cant we get some insight from the banking sector to help us on our way, they are on our doorstep after all!?
In order for the market to survive, it needs to adapt to technological change and compete with more efficient international rivals, of which the claims service enabled by modern and flexible technologies is at the forefront. Customers should have the ability to self serve and notify their claims on a mobile device, their loss being assessed via data, imagery and technology, and their claims being paid instantly and directly via PayPal.
An insurance product is only as good as the claims service that sits behind it.
Designing and developing the new claims model is critical for our global service, to enable us to compete, attract and retain business, and reduce expense, whilst it plays a huge part in the retention and attraction of talent from inside and outside the industry.
An advanced claims model means second-to-none service for our customer and our value chain. As a market, we are often distracted by the transactional data and processes that take up a great deal of time within a claims professionals’ role, and quite often we find it difficult to associate the traditional claims service with the service the customer and our value chain receive and expect.
Emerging technology will improve and streamline claims processes making better use of data which will enable claims teams to make more informed decisions, whilst freeing up claims professionals to be less focused on administrative and reporting tasks, so they can focus on complex, value-added and client advocacy areas of work.
We need to spend time servicing, not just processing and reporting. We need to understand our customer needs and expectations and work towards them. We need to proactively investigate the loss before it is formally notified allowing a proactive claims and account management model to support policyholders need for partial or full payment, as opposed to transactional workflow which is reactive claims processing.
A technologically advanced claims model will enhance the customers experience pre-loss and post-loss.
Seeking to deliver benefits to the customer, broker and TPA is key to achieving an advanced claims model. Together I believe we can shape the future and enable the future leaders of the London market using technology as an ally.
We’ve talked a lot about why, but let’s work together to work how we can achieve this.
What do organisations need to do to prepare?
- Assess technological capabilities and if required improve the standards of infrastructure or application to align with a data and API driven model. For starters, does your claims management system enable Write-Back and/or ACORD messaging, and if it does can it consume, display and utilise a greater risk and claims data set to support the automation of claims triaging, agreement and processing, and could it apply artificial intelligence to support and or automate claims assessment?
- Consider the future business process and servicing model for claims by class of business – open market, delegated authority and reinsurance, identifying the opportunities to transform to a seamless low touchpoint business model where a coverholder, TPA and broker will have less (non value-add) processing touchpoints but have the data and interaction to support and service the customer.
- Conduct a capability assessment of the claims workforce and structure to assess skills gaps and create a skills and talent strategy to adapt, support and change the structure and role of a claims team and its people.
The effort and focus to radically improve data standards and quality, to deliver a data driven model with the right technology and tools is step one. Step two will be to develop the skills needed to use and analyse the data, whilst we implement modern technologies and applications that interact seamlessly between customer, value chain and carrier.
In order for the technology to be effective and work for us, we need to recognise that a cultural shift is needed to equip claims professionals with the skills and mindset they need to align with new technologies and processes.
There will be opportunities for managing agents to improve the skills within the workforce to become a bionic organisation and maximise their investment in technology in order to make an improved value proposition to their customers.
Bionic organisations will understand that technology is not the death of traditional claims, but it is the evolution of it.
What does the claims workforce of the future look like?
Claims professionals of the future will need to be client advocates, customer service professionals, account managers and data analysts, as well as having the skills of a claims adjuster or processor. Claims professionals of the future will likely be using human and technical insight, artificial intelligence and analytics to enhance the service we offer to our customers, underwriters and actuaries.
The recently published “Claims Workforce of the Future Report – London Market” refers to the opportunities and areas of focus that the market need to consider.
What can we do right now?
The benefits from the top level are apparent, but this change affects everyone – including our value chain and our people. It is important to engage and consult with everyone involved early on in order to achieve the right results.
At the LMA, we are working with our members to identify the skills that the claims workforce of the future will need while understanding ways to support current claims professionals in honing new skills and adapting to the transformational change.
In collaboration with PwC, we have been speaking to our members to explore how they are planning on evolving their claims teams from where they are today to where they need to get to in the future from a skills and capabilities perspective. If you are interested in attending one of these sessions, please contact the claims team.
We need to empower, support and provide the opportunity for the talent to engage and grow within a claims transformation phase that will fundamentally improve the model we operate in, streamline business processes and introduce a change to culture and skills.
We have the opportunity to shape the future of the Lloyd’s market and enable the future leaders of the Lloyd’s market.
Let’s not be afraid of change, let’s influence and embrace it.
Published: August 2019