Only 20% of customers rate communications from insurers excellent. It is a common complaint that "I don't know what is happening". Surveys show that over 50% of inbound calls are from frustrated customers wanting status updates. And two-thirds (62%) of consumers are likely to switch providers if their communications expectations are not met.

Yet digital claims platforms can already send status updates in realtime to customers as each claim progressives through the various stages of the claims journey. There is no excuse for poor communications.

Better still this should cover progress as third parties in the supply chain complete their part of the work to settle claims.  Drainage, groundworks, subsidence you name it for home insurance. Platforms that orchestrate the supply chain also send automatic status updates.  50% of inbound calls drop to a trickle and claims handlers (adjusters) can get on adding real value for customers.

The same goes for auto customers when booking vehicles into the repair network is automated and the body shop is linked via API to automatically send updates as the repairs progress.

Customers generally state that they would rather wait a little longer to get their vehicle back on the road but have reliable updates on progress than be given automated predictions that prove over-optimistic.

Much is written about applying AI with visual image recognition to estimate repair times and costs so customers expectations can be managed. In practise this suffers from immature technology and a lack of sufficient data that leads to the inaccurate predictions that customers dislike. It will probably be in three to five years that AI hits its stride; see Connected Claims Report Insurance Nexus 2019.

Today's Digital Claims Platforms must deliver timely, accurate and relevant information in the way the customer prefers. That means they must cover the full claims value chain. Not just a snazzy, self-service FNOL managed from the phone but constant engagement from first registration through to settlement. The platform must digitalise the customer journey and be a communications and choreography hub. 

Humans are powering technology whereas technology should be empowering humans. I

In this digital age automation of tasks and choreography of all parties is the role of technology. Making more involved decisions and looking after customers is the job of the human who still possess the most advanced computer in the known universe, the Brain.

Paul Stanley CEO 360Globalnet

Stanley goes on to state: 

 "The technology available today will enable Customers, Brokers/Agents/Suppliers/Repairers/Third Parties/ Loss Adjusters/Lawyers etc to self-service their own input to a single cloud-based record which has been mapped out in digital technology by the Insurer."

He describes the nature of this digital platform

It is a no-code environment which allows business users to develop and configure process online at the desktop in plain English replete with an array of all the necessary digital functionality in one place

  • Advanced self-configurable workflow
  • Automation of task
  • Orchestration of people
  • Embedded online and offline video/imagery
  • Advanced data/analytics and unstructured data technology

It is designed to work

  • Alongside legacy where that is kept as a basic system of record unless or until its remaining function is migrated to the digital claims platform
  • As a standalone core platform
  • Where bespoke functionality can be called off in a hybrid model

Given that the solution is already there it is hard to fathom why insurers do not invest in projects that these days are $100s of thousands rather than the $millions of yore. That take months rather than years to deploy.

Maybe the fault lies in a lack of confidence by Claims Officers to present a compelling business case. This is one conclusion in The Connected Claims Report 2019.

If so they should take heart from the proven metrics of success when adopting the right vision, strategy, resourcing, technology and of course, leadership.

You can review these metrics from industry leaders at: -

Are your digital claims goals ambitious enough?

Which comes back to communication- presenting the compelling need and compelling solutions that will mark out the first moves and leaders of the 2020s.