2020 has changed everything for everybody. For insurers, the list of challenges is exceptionally broad and highly complex. Is it possible to grasp them all simultaneously?
A failure to positively address the impact of disruption to operational delivery, claims patterns and upweighted digital demand by consumers represents a severe threat. 360Globalnet are specialists in digital claims enablement whether it is wrapping around legacy systems to plug digital gaps or the wholesale re-working of claims platforms that can never deliver the future.
Our experience is borne of decades inside the insurance industry and distilling that expertise into systems that address the basic needs that sit behind the challenges. By investing £millions in a no-code platform, we’ve created systems that can be configured and deployed super-fast at a fraction of the cost of typical development timescales. Every building block is already fully developed – it is just a question of assembling them to deliver the systems insurers need.
The digital bells and whistles are standard but they sit on top of a platform that is built for integration, for fast proofs of concept, for robustness and most of all, the chance to reduce costs while improving customer satisfaction.
Customers are now used to a ping on their mobile when packages have left the warehouse and another when delivered to their home, and as a result, their expectations have changed. Our comprehensive eFNOL and updating functionality delivers that retail experience while automation and workflow tools strip out the unnecessary costs of manual steps in processes.
Our clients are global brands, international names, industry leaders. They all share one common characteristic. They approach tipping points positively and adopt the right technologies at the right time to make a difference.
Take aggregators. When price comparison started in earnest, it gave an incredibly simple way for small insurers and big insurers to compete on price and only pay for every success. Also the payment was fixed, usually £50 per policy. In the television advertising days cost per acquisition was often in the £100-£200 region.
Aggregators introduced transparency into a market where the opacity favoured the large brands and the brokers, not the customers. Once Confused.com started back in 2005 a whole new distribution dynamic was introduced, that lead to savings for millions of people but also predictability for carriers when it came to their cost per acquisition.
The other factor that no one discusses, is that many large composite insurers in the UK run their car insurance books at a loss because it’s the only product that gives them regular opportunities to cross sell to customers. Several times a year a customer has to open car insurance envelope or email on account of renewal or mid term policy changes. Within those communications there will always be cross sell activity for much more profitable products.
So as the FCA stops price optimisation in 2021 and insurers can no longer compete on price what are their options when the profitability is so low?
How can they transform customer interaction and engagement without breaking the bank?
It puts more emphasis on product differentiation and as consumers move more to rental for homes and vehicles, the emergence of 'mobility-as-a-service for auto, gig working and UBI and parametric insurance gain bigger footholds there are many opportunities for innovation.
Insurers big and small have the opportunity to win customers if they they have and can analyse the data to offer the right products at the right time in personalised portals. To see what I mean look at HUGHUB. The user interaction and engagement is so much more complete and useful for consumers. If insurers are to establish ecosystems this is the front-end research and buying quality they must offer.
Unable to compete of price for new customers they must compete on product and the ease of buying and servicing these products.
Even so the matter of cost still rises it head and as acquisition costs will rise, margins be squeezed then insurers must look where the opportunities to reduce costs lie.
70% of so of an insurers cash flows throw claims operations this this is the area they should focus on. Not just claims operations themselves but the supply chain which is an area of significant waste time and materials.
New claims management platforms like 360SiteView do reduce Opex by the 40% factor , increase NPS to the high 70s and mid 80s and deliver Customer Satisfaction scores of 90% plus. Combining better service and lower cost will increase lifetime GWP and improve margins offsetting the higher customer acquisition costs that insurers will face come what may.
Better still, combining platforms like HUGHUB and 360SiteVew will make the dramatic innovation impact that insurers must achieve now that the FCA is forcing their hands.
With pandemic, technological, regulatory and consumer pressures arising all around, it’s time to take another look at all the options at this tipping point. 360Globalnet can help you – we can wrap around, integrate, reimagine and reinvent any processes in insurance claims. No obligation – just check that you’re not missing out on a solutions that is helping many others tip the right way in 2020.
If you'd like to discover more about how 360Globalnet might be able to help you, get in touch. We'd be delighted to show you what is possible.
Insurers are facing another big increase to compensation bills after the Court of Appeal ruled that they will have to pay out more to people who need to change their accommodation because of an accident. The decision will heap more pressure on insurance companies, which are already dealing with wide-ranging changes to the way that compensation payments for accidents are set. Local authorities, which deal with claims against highways authorities, are also likely to be hit.