With margins under pressure and customer acquisition costs rising why delay in tackling productivity and cost issues?
Claims is a key area to address. 360Globalnet has delivered major productivity benefits across all products and perils. Take these for example.
- 70% reduction in call centre FTE resourcing
- 45% reduction in claims operating expenses
- 40% cut in average length of a claim
All achieved with zero capital expenditure and with no need to replace current core systems of record.
These metrics are not from just a small sample of simple claims. Over 3.6 million claims from high-volume/low value A&D through more complex auto repairs to serious Disaster Repair & Recovery (DR&R) claims.
Overspend in this area is commonplace in this sector and combining a digital claims platform with digitally transformed supply chain partners yields significant productivity and customer satisfaction gains. Take one major UK insurer's results: -
- Escape of water, flood and fire register an indemnity saving of £2,500 per claim ($3,025)
- Major UK Insurer gross savings of £25m/$30m a year
- Claim cycle times reduced by 50%
- Enables all key decisions to be made on day one
- An average of 17 additional decisions are now made on day one that would’ have taken weeks of back and forth calls
- Complaints reduced by 95% when a live video stream is leveraged
Take a more detailed look at KPIs and the improvement you can start making NOW at:
Collapse costs, delight customers and motivate claims teams
Saga’s insurance profits dived 22% in the first half of the year. Earned underlying profits were £49.3m (2018 H1: £63.7m) as the business is being hit by lower margins on retail broking. Saga branded home and motor products profits fell £4.8m on new business profits and £4.4m on renewals. Saga partly blames a proportional increase in customers renewing through price comparison sites, which are lower margin. ”The change in new business profitability is mainly due to a challenging market environment and shifting distribution trends, leading to an increase in acquisition costs per policy,” Saga said in its results today.