5 secrets to easier claims
Since 2001, Claim Central Consolidated has been a champion of creating easier, faster and cheaper claims outcomes for insurers, brokers and their customers. Here we take the 10,000ft view of what we believe are the 5 key secrets to easier claims.
1. Customer connection is #1
Everybody seems to share the same problems when it comes to insurance claims – lack of visibility, poor communication and very little connection to what’s happening in the claim. All too often, claim staff get so swamped with menial tasks and admin that the customer gets forgotten and frustrated.
The Chartered Insurance Institute (CII) (London), Public Trust Index, 2018, found that the top priorities of insurance customers are:
- Having a claim settled quickly (76%)
- Having a claim handled in a respectful manner (71%)
- Having control over the way a claim is settled (69%)
Trust is the key to a great claim experience and the best way to build trust is through more visibility and better communication to create a more connected claim experience – before, during and after the claim.
Claim Central’s emphasis on building trust through technology has helped Insurx, our TPA claims management business, achieve industry-leading results in 2019 – with a +52 Net Promoter Score for one major client and an 87% home insurance claims satisfaction rating for another – results that have been almost unthinkable up until now.
A few examples of ways you can help your customer to feel in control of their claim:
- Real-time customer sentiment & feedback – allowing customers to give feedback at every stage of their claim in real-time helps keep the claim on track and pre-emptively mitigates the risk of a poor experience.
- Customer portal access – allowing customers to see where their claim is at and what the next steps are to finalise the claim. When there is a vacuum of information the customer tends to assume the worst – but by presenting complete transparency they know they have nothing to fear.
- Keep it quick and simple – allowing the customer to sign and upload documents digitally, make excess payments via their mobile, or connect in real-time via video streaming, are all ways to make the customer’s life easier.
2. Take advantage of technology
Technology alone is not a magic bullet to achieving better claim outcomes – if it’s not based on a strategy of ‘customer-first’ coupled with a strong digital foundation and workflow, you won’t be able to achieve a connected claim experience.
A good example of this is our live video and collaboration platform LiveLogik, which allows claims to be finalised in a fraction of the time of the traditional process. With features such as live video streaming, digital document signing, mobile excess payments, on-screen measurements and drone integration, the first 72 hours of a claim are drastically reduced through real-time connection between the customer and claims manager. By integrating LiveLogik into our workflow and our claims management ecosystem (including ClaimLogik and Hello Claims), and by proactively providing desktop assessing capacity to handle the additional volume of this channel, we are able to take full advantage of LiveLogik’s capabilities. Without this integration into the core digital foundation of the business, the benefits would be greatly reduced.
Some technology innovations to look for in the next twelve months include:
- AI – utilising predictive analytics pre-event and post-event to reduce losses and cut cycle times
- Digital workers that far outperform their human counterparts in redundant repeatable tasks
- VR technology not only at claim time but also for training purposes
3. Take control of your supply chain
Your suppliers are the lifeblood of any claim and taking control of your supply chain through digital channels is a key way to not only improve your claims process, but create scalability also. A few examples include:
- Competitive tendering – setting up your ecosystem to optimise the tendering process through competition, is a key way to drive down claims cost on both materials and labour.
- Digital scorecarding – by measuring every interaction between your supplier and the customer, you are better able to track the quality of their work and also their professionalism and customer service. What’s more, by tying scorecard results into your allocation process you can proactively drive better performance through incentivisation.
- Digital access – allowing trades to participate digitally through the entire claim process not only drives engagement but also improves lifecycles. From initial onboarding, through to online claim tracking, photo & document uploads, live video streaming and invoicing – you make their lives easier which makes your life easier.
4. Generating insights from your data
Over the last couple of years the integration of data models and insights into the claims process has moved from descriptive and diagnostic reporting (which retrospectively tells you what happened and why); to a more predictive and prescriptive model. Predictive analytics helps you anticipate what will happen, while prescriptive analytics helps you to respond effectively to those likely events. So the data analytics journey within claims is evolving from a reactive one to a more proactive one. In essence, we as an industry can put data into the hands of frontline staff who can consume it to determine the best outcomes for customers and clients.
For Claim Central Consolidated, our ability to analyse claims data to identify bottlenecks has seen huge improvements in our long-tail claims reduction. In 2019, through our data analysis, we were able to pinpoint specific pain points in claims greater 60 days and take the appropriate measures – resulting in a reduction of 74% in open long-tail claims over a 3 month period.
An integrated data and analytics strategy can help you to:
• Connect data from multiple sources to create a 360° view of a claim
• Define lead and lag indicators for your key claim KPIs
• Prepare, respond and review catastrophe events through comprehensive weather event monitoring
• Estimate duration targets and cost targets at claim level and segment level
• Plan capacity and utilisation
• Use predictive models to optimise customer, cost and lifecycle outcomes across your claim segments
• Enable early intervention to reduce the impact of ‘off-track’ claims
5. Lifecycle, lifecycle, lifecycle
Like it or not, claim performance outcomes are a direct function of lifecycle. The longer the claim, the greater the cost, the unhappier the customer. As we all know, keeping lifecycle at front of mind is key.
One of the key influencers of total lifecycle is the first 72 hours of a claim when first notification, mitigation and emergency response take place. One of the ways to improve lifecycle at this early stage and get the claim off to a fast start is by using technology that encourages quick and easy interaction between the customer and the repairer or insurer.
Our live video streaming and collaboration platform, LiveLogik, has provided enormous results to our claims performance at Claim Central Consolidated. In 2019 our property repair average time from claim decision to receiving excess and signed scope of works was just 5.5 days (a 68% reduction compared to 17.4 days using traditional methods). Tellingly, 30% of these are received within just 3 hours and 58% within 1 day.
What will claims look like in 10 years? How much of the claim process will be handled by humans, and how much will be technology-led through robotics and digital workers? How smart will technology be in not only completing processes and tasks, but feeding information into data models to create a continuous loop of improvement?
We’re looking to the next horizon and it’s a lot closer for insurers and brokers than a lot of people think if they are willing to implement a sound digital foundation and a smart workflow methodology. The industry needs to move from a ‘bolt-on’ mentality of piecing together disparate widgets and platforms, to a ‘vision-first’ mentality – starting from the ground up to understand their vision and operational model before integrating the relevant technology to help achieve that vision.
To learn more, please contact:
Matthew Lawrence | Head of Partnerships
+61 401 063 828