Claims transformation in 2015
The key point at which any individual will interact with their insurance company is when they have a claim; this is the moment of truth!
With aggregators so prominent in the general insurance market today, and price often being the main differentiator, claims is the one area where an insurer is able to stand out from the competition. Whilst social media, such as Twitter, can be used successfully as a customer engagement and communication tool, technology also has potential to transform the cost base of claims. Despite the clear benefits that technology can offer – reduced legal costs, speeding up the claims process and the ability to send pictures direct form your laptop to your insurer – “almost one third of insurers and 62% of brokers have no plans to invest in either social media, mobile apps or predictive analytics to improve the claims process in the next 12 months” (The Future of General Insurance – Special Report 2014, Marketforce).
With organisations moving from being product-focused to customer-centric it seems surprising to me that they are still not able to see how vital transformation within this space is to the success of their business; not only from a customer engagement and retention perspective, but also to their operational costs. Developing an effective claims strategy is an increasingly complex balancing act between investment in customer service and driving efficiency whilst controlling indemnity spend.
I am keen to hear your thoughts around operational efficiencies within claims and how you are harnessing new technologies to enhance to the process. Claims are clearly a key area of change for 2015 and most companies have it on their agenda. What are you doing to enhance your customer experience whist controlling your costs?
Ben Johnson is the Principal of Financial & Professional Services at Interim Partners.