Claims department is the “shop window” of insurers – and the quality of service delivered there will influence perception of the brand.
Insurers are being disrupted by forces from inside and outside of the industry – with changing customer expectations and advances in technology topping the list. Although the recent wave of platform modernization in claims has improved indemnity performance and reduced costs, considerable scope remains to transform the claims function further and create a truly future-ready organization.
Such transformation is vital because the claims function is increasingly considered central to delivering on the customer promise and providing competitive advantage. Insurers need to focus on how to service claims in more effective, efficient and customer-focused ways.
We believe huge scope exists to transform claims functions and unlock significant benefits for both the insurer and the end customer. Success depends on the intelligent use of new technology, processes and human resources. Developments in technology, particularly increased automation and intelligent use of data and analytics, will inevitably have an impact on people and capability requirements – with increased demand for higher skilled individuals in many areas.
Claims technology will be underpinned by an engagement platform to support effective communication and interactions with customers, brokers and third-party suppliers. Core claims and data management platforms will then enable high quality claims management. Intelligent automation and sophisticated data analytics will improve efficiency, customer service and decision making across the claims function. Finally, a smart services layer will further enable data analysis, as well as plug-and-play partnerships with InsurTechs. Putting all these elements together will create the “smart platform” insurers need to support the claims function of the future: one that is more connected, customer-focused and efficient.