Oliver Bäte, the Chief Executive Officer (CEO) of global insurer and re-insurer Allianz, has said in an interview with Bloomberg Television that the pandemic hit the industry “like a meteorite impact.”
Fredrick Bisbjerg Chief Digital Acceleration Officer at insurer Noor Takaful warns "We will not be returning to a state like what was before the outbreak – too many things have changed."
He highlights strategies all insurers must consider urgently including:-
Anticipate the paradigm shift as buyer behaviour changes as it has become virtual and digitally connected at a massive scale. As claims teams have been forced into remote working from home policyholders are catapulted into digital claims from eFNOL to virtual inspections and surveys.
Some experiences are good and some claims journeys clunky and slow. As Amazon continues to deliver on time and fast policyholders will expect insurers to deliver similar outcomes. The customer will no longer be the customer the insurer is used to. This will have significant implications for most insurers as they rethink products and services.
There are implications for technology vendors as well. As customers demand virtual experiences that equal and improve the traditional phone and email contact from call centres so will insurers demand virtual capabilities from vendors.
Why should it take years to perfect auto and home claims management systems? And once deployed why does it take extra Capex and Opex to add Pet, Travel, Commercial and Speciality? Or the same to upgrade to a new major release?
You may have achieved an acceptable customer journey and UX in motor but why can't you customise the home claims journey for every peril without paying extra?
Why can't you migrate home and motor claims from a traditional, under-performing platform in weeks to a next-gen digital claims platform in weeks? Literally two or three weeks and all done remotely?
The answer is that you can- 360Globalnet has done so for two major insurers in April. It has also delivered three travel portals to three insurers that urgently needed a platform to handle travel cancellations and curtailments.
Vendors often challenge insurers to digitally transform without acknowledging the barriers they put in the insurer's way.
- High Capex and Opex
- Extra licensing for every additional claims type
- Extra licensing for new geographies
- Complex on-boarding
- Lengthy lead-times
- No appreciation of the restrictions legacy systems place on progress
How many insurtechs can reduce fixed costs to a minimum over a reasonable time period and reduce claims Opex?
How many will deliver 77% to 95% NPS, increasing customer satisfaction ratings, reduced costs and happier employees no longer having to deal with mundane repetitive tasks. All on a pay-as-you-go model. Combining human intuition and empathy with automation.
How many digital claims platforms also let insurers access, join and make "AI-Ready" all the unstructured data hidden in data silos across the enterprise? And combine this with all the real-time data generated by a modern digital claims management platform?
Claims managers and team leaders have deserved this for years yet rarely see this across all claims categories.
How many claims platforms are truly agile and supportive of virtual teams that change proactively as the business changes? For example- being able to replace site visits with virtual visits that still gather the evidence for home and commercial property claims. Not to mention motor accident loss and repair estimates.
No Code software is a must and these Covid-19 weeks have proved the point. Insurers just cannot wait for a vendors developers and SI consultants to innovate and iterate. They need to able to make changes in plain English (or whatever native language required) from the workstations of a small number of trained analysts.
Innovation, iteration, testing, iteration, testing and publishing to deliver optimal experiences to customers and the claims teams. Without delay and extra costs.
This means insurers can enjoy another key success factor that Bisbjerg describes as essential.
Keeping IPR in-house.
"The buy vs. build depends on where the layer of differentiation is chosen to be, and most practices would suggest that the core differentiation should be built to keep the intellectual property in-house.
But differentiation can also be in the way standard software applications are connected. No matter what, it’s important that the areas of differentiation are decided so the new tech architecture can be built to accommodate that. Examples of differentiation can be within:
- Underwriting, bundling of products, special covers or terms and conditions, segment-based pricing, etc.
- Customer experience, ease of buying, embedded in other products (part of a TV price, travel tickets, etc.) or simple claims processes, etc.
- And much more. Bear in mind that even areas of differentiation aren’t guaranteed to last long in the New Normal, so the tech architecture must be structured in a way that makes it possible to rearrange the technical building blocks very easily."
360SiteView's No-Code architecture does just that. You are not confined to a configuration capability of a claim system but given the freedom to customise and tailor every process, workflow and journey for every peril.
WE have already mentioned on-boarding.
What is the use of a claims management platform that is agile if it requires months of training and change management meetings to implement? We have trained claims handlers, fraud teams and supply chain managers in the two/three weeks it has taken to install and deploy digital claims management.
We empower and enable claims teams to achieve the re-skilling vital to operate in this new paradigm as Bisbjerg describes: -
- "Ability to work effectively virtually – including staying mentally and physically fit
- Extreme adaptational skills – ready to adjust and adapt to changing job tasks and environments
- Tech savvy – a virtual company requires virtual and digital competent employees
- Skilled in digital conflict management – virtual meetings are a common part of the New Normal, so even tough talks must be mastered virtually"
I leave you with Frederik Bisbjerg's final advice and a link to his full article together with a useful McKinsey report.
"There’s no doubt that insurers – and most other companies, for that matter – are facing a series of very difficult and tough choices around cost optimization, reorganization and how to design the company of the future. And there are no shortcuts. It’s difficult and hard work all the way.
Nevertheless, it is hard work that has to be done. Now. The consequences of not acting now will be fatal.
Stay safe, and good luck."
With over 3.5 million claims processed in the new paradigm with household name insurers from Australia to the USA we can help. Why not get the optimal benchmark to compare the alternatives you have?
Contact one of us.
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Thank you and keep safe
The world has entered recession and is witnessing a paradigm shift in how we interact with each other and how businesses operate with the massive #stayhome and social isolation campaigns. We are looking into a New Normal – a VUCAV world (VUCA+Virtual), where companies and people must interact virtually and in an environment with high rates of unemployment and financial crisis. Insurers need to prepare for this. They need to radically change the ways they think of interacting with the customers and how they manage their processes internally. If not, they won’t stay relevant in the New Normal.