A double whammy of falling premiums and rising claims costs.
Time to tackle claims costs now to maintain competitive advantage but how to do so without incurring more capital costs and potentially hitting customer satisfaction.
A number of insurtechs offer solutions but few have 3.6 million claims digitally transformed for major insurers to prove they can collapse costs and delight customers at the same time. 360Globalnet has proved that insurers can beat Mckinsey's prediction that
"Motor Insurers can double profit's within 5 years".
Backed up by other major consultants here are the goals to aim for.
- Up to 70% reduction in call centre resource requirements -360Globalnet (360GN)
- 60% Reduction in FTE staffing -Boston Consulting Group (BCG)
- 30% reduction in cost of claims- McKinsey
- 3 points to 5 points reductions in combined savings ratio -Bain & Company
- Digital Lean Initiative leading to cost reductions of 15% -BCG
- 5% to 20% reduction in expense ratio- McKinsey
- Total Cost of Ownership reduced by 20% to 30%- McKinsey
- Digital customer journeys yielding cost reductions up to 20% -BCG
- From 20% of call centre calls being “what’s happening” to 50% drop in status calls- McKinsey
- Up to 50% reduction in processing time per claim- LexisNexis
- 5%-15% Annual Revenue Growth- Bain & Co
- Using data prefill at FNOL 14% improvement days to pay for PI- LexisNexis
- 3 points to 5 points reductions in combined savings ratio- Bain & Co
- 1 to 4 manual touches removed from claims process- LexisNexis
- 1 to 15-day reduction in processing time per claim- LexisNexis
- 3 to 10 times more cases processed per adjuster- LexisNexis
- From FNOL in days and hours to minutes; 35% zero-time eFNOL with AutoServe - 360GN
- Claims life-cycle reduced by minimum 40%- 360GN
- Increase in Net Promoter Score by 20 or 30 points - McKinsey & Company
- Average of NPS 77% over all Home & Auto customers, 82% in Pet- 360GN
You need to prioritise and deploy the platform first and in parallel hone the culture, resources and skills to fully exploit the technology.
Then add the means to access, join and analyse unstructured data from all the silos across your organisation. This starts with better decision making and leads on to transformed Fraud and PI solutions
The final part of a total innovative approach to boost profits and NPS further is - Digitally reformed Claims Services.
Combining the three makes the biggest impact on bottom line and customer satisfaction. :-
- Digital Claims Platform
- Unstructured Data Analytics
- Digitally transformed claims services
So if you are to anticipate EY's prediction that falling premiums and rising claims costs will hit profitability initiate a proof of concept to prove the results already being achieved by your competitors.
At the same time claims costs are rising by about 6 per cent a year. That is partly because cars are more expensive to repair now than they used to be due to the amount of technology in areas such as wing mirrors and bumpers. But it is also because repairs are taking more time, forcing people to use hire cars for longer.