Mckinsey shows that four critical success factors are shared by the top quartile of companies measured by financial performance. Shouldn't that be a reason to benchmark your own transformation against these?
- Go big, go broad
- Move fast and renew often
- Embrace emotional health
- Stretch your aspirations
I recently discussed these with Paul Stanley CEO of 360Globalnet which has achieved considerable success transforming insurance claims. He states that over 3.5 million claims have now been digitally processed from Australia through Europe to the US and Canada with national and global insurers. So he can prove this with measured metrics from successful insurance claims transformations.
Go big, go broad
Stanley agrees with this in the medium term but also warns against going too fast off the blocks. Take one category of insurance claims and reimagine the customer journey from the customer backwards. Bring all the cross-functional teams involved including handlers, underwriting, fraud, supply chain and marketing/IT .
Do not make the mistake of trying to make current customer journeys slicker and more efficient- "lipstick on a pig".
Start with a team of five to ten on one or two perils and within weeks to you can deploy a three month POC. ALWAYS measure results against business as usual (BAU) so you have a solid business case for expanding. In the second and third months add two to four more perils e,g,
- Month One- Home A&D- TVs, Phones, Carpets
- Month Two - Freezer Contents
- Month Three- Surge
By the beginning of month two Stanley says insurers have already measured the benefits to prove the case and it just gets better.
Then you have the basis to apply the lessons over all Home and Contents and transform all perils during the first twelve months hence achieving McKinsey's advice to Go Big and plan to Go Braid by adding Motor, Travel, Pet, Speciality, Commercial as fast as your change management and culture capabilities allow.
Of course, you might complain that your legacy systems won't allow you that progress but the answer is in the next section
Move fast and renew often
Coire systems, whether old legacy or newer but complex and heavily coded platforms, are a challenge. Paul Stanley has solved that for Global insurers and smaller national ones.
His NoCode digital claims platform "wraps around" legacy systems and platforms delivering optimal customer UX and journeys without having to replace core systems.
Being a NoCode digital clams platform means that the business can iterate, test and publish fast and renew often. Stanley says to beware the "Lowish Code" which visually is epitomised by drag & drop configuration but still limits insurers to the limited functionality of the product.
NO! he says- insist that you can customise the customer journey to reimagine the UX and claims flows to delight customers. Stanley talks of how his biggest customer was able to proactively change processes so that Thomas Cook travellers were flagged and given priority after the sad and sudden demise of that travel company.
Or the global customer faced with a 300,000 vehicle recall program that overwhelmed its core system. 360Siteview deliverd the solution in two days.
Embrace emotional Health
I saw a recent presentation in which research showed claims handlers to suffer four times the sickness rates of other insurance employees. In the quest to improve customer journeys and experience it is too easy to forget claims staff. In addition to delighting customers technology solutions should motivate and empower employees. Automate the predictable and repetitive tasks and deliver the insights to make and execute decisions better.
Stretch your aspirations
Unlocking the value on the data that is currently unstructured and inaccessible (probably around 80% of your data in silos inherited over many years of M&A) yields new insights to change your strategies and operations.
Too many insurers are held back by complex and inflexible software and platforms that mean they can only innovate in one area e.g. home or motor. Pet, Travel, Speciality, Commercial just stand out like a sore thumb as untransformed.
Any digital platform worth its salt must deliver outcomes across all products, all geographies, all languages without breaking the bank or the back of an insurer. How many technology partners can truly say that?
Paul Stanley proudly points to transforming claims from $600 accidental damage to $billion dollar large claims. ll with one platform, one agile platform. With a pay-as-you-go licensing model and often no upfront costs. In fact usually no upfront costs.
The result is that rather than making welcome but marginal improvements you make a five times difference. When the transformation covers not just FNOL but the supply chain it means a five times difference. When the supply chain itself is transformed it means a ten times difference.
A difference delivered fast as McKinsey shows-
"When we drilled down into a subset of our data to get a sharper picture, we found that successful transformations typically implemented initiatives that ultimately corresponded to 28 percent of fully ramped-up value in the first three months, 57 percent in the first six months, and 74 percent in the first 12 months".
Go on- you know you cannot hang back. Act today! Why not ask Paul.Stanley@360Globalnet.com to share his success and KPIs with you?
As part of an analysis we term “transformatics,” we’ve built the capability to measure the data set we’ve assembled of more than 200 large transformations stretching back nearly a decade. More recently, we isolated the 82 public companies that had undertaken a full-scale transformation and had an observable 18-month transformation track record to see what we could learn from a statistical analysis of their experiences. The research highlighted four indicators that showed a statistically significant correlation with top-quartile financial performance during the 18-month test period