Now is the time for bold learning at scale.
"Now is the time to reassess digital initiatives—those that provide near-term help to employees, customers, and the broad set of stakeholders to which businesses are increasingly responsible and those that position you for a post-crisis world. In this world, some things will snap back to previous form, while others will be forever changed. Playing it safe now, understandable as it might feel to do so, is often the worst option."
McKinsey Digital April 22nd 2020
Easy to say that to VP or Director Claims when the C-Suite revise priorities and options :-
- Defer Capex requests
- Hiring freeze
- Re-evaluate ongoing projects
- Successful ones must have low cash requirements and quick time to value
- Don't ask for any major core system upgrades
Who'd be a claims leader in times like this! Your policyholders have relied on the world's best in online buying and servicing experiences. Order on Amazon today and they still deliver quick and keep you informed on delivery status.
Why can't my insurer do the same? I mean Lemonade does for home contents so why not insurers X.Y and Z for escape of water, carpet damage or freezer contents?
Like it or not the C-Suite will be asking why you have not digitally accelerated the claims process after all the millions spent on this and that platform over the years. So you have improved CX for auto but what about our Home Book? Travel, Pet and Speciality?
What options have you got?
- Build your own on legacy or current core systems like Guidewire, Duck Creek, Pega etc
- Chose from credible 'Point Solutions' like Shift, Tractable,
- Chose a No-Code platform like Unqork, Salesforce or AGILEPOINT and build a brand new digital claims platform
- Chose a digital claims platform that combines best of all three with none of the weaknesses from 360Globalnet, Instanda, Snapsheet, Vlocity etc.
1) Build your own digital acceleration from current core
Trouble with this approach is that you hit the buffers of the new restraints like meeting low cash requirement and short-time to value. Have the 'On Prem' platform vendor's new digital offerings got all the functionality of the old products?
You are likely to hit the issue that whilst you can achieve the outcomes planned it will probably take too long, cost too much and be under-spec.
The acid test?
- Can we go from standing start to a modern end-to-end digital claims platform for all claims types, all geographies and simple A&D to complex CAT claims in max of 12 weeks?
- Can we train claims adjusters to go live across all lines of business effectively in that 12 week period?
2) Modern Point Solutions
The issue here is in the description. They are very capable but only deliver on parts of the claims value chain. So you will need to integrate a number of them which means overlap and extra cost.
The acid test? Do they deliver digital acceleration over all these stages of a claims journey?
- Case Reserving
- Fraud Investigation
- Negotiation and Settlement
For Motor, Home, Pet, Travel, Warranty, Speciality, Commercial, CAT, DRR .... with every customer and claims journey customised and digitally optimised for any geography/language?
3) What about No-Code Platforms like Unqork?
These will enable you to build customised and digitally optimised journey. Being No-Code means you will not have to rely on a vendor or system integrator to iterate, innovate and constantly improve. The business can take control without being hostage to these armies of costly consultants, analysts and developers.
On the other hand you may well hit he buffers of cost and cash burn and you will be starting from scratch so it will take longer. Will that meet the quick time to value criteria? Promising but looks like their is a sting in the tail.
4) Agile No-Code Digital Claims Management Platforms
These are designed as virtually 'off-the-shelf' insurance claims solutions with a PAYGO business model and quick time to value. Look more promising but you should still apply he same evaluation criteria we set for modern point solutions above.
Many will only address parts of the value chain. Some will only fit into a particular ecosystem e.g. Salesforce.com
Others will be good for Auto but let you down on Home or Travel or Speciality.
Others will appear to be No-Code but are really low(ish) code. You drag and drop pre-configured functionality without the need for coding but are still restricted by the functionality the vendor offers.
The Acid Tests
- Can you customise any claims journey from simple A&D to complex DRR/CAT claim from FNOL to Recovery stages?
- Will conditional branching mean claimants only answer relevant questions simplifying CX and shortening lead times?
- Can we orchestrate all parties and events including the supply chain, brokers, MGAs, TPAs?
- Is the licensing PAYGO with No or Low Capex?
- Are there cash-consuming implementation or start-up costs?
- Could I go from decision to deployment in weeks - two to twelve max?
- If we give them a desired digital workflow can they demonstrate a working product in days and maximum of a week to prove no-code agility.
- Can they demonstrate enterprise deployments across all claims types and complexities across all continents from Australia to the USA?
- Can we access, join and analyse all that unstructured & semi-structured data hidden in data solos? Make it AI Ready?
- Can they go live without us having to make changes to our current core systems other than cost-effective integration?
Answer all these positively and I propose that option four is the way ahead.
Digital strategy in a time of crisis McKinsey Digital
What will be the new normal for claims offices and WFH? Insurtech World
Every company knows how to pilot new digital initiatives in “normal” times, but very few do so at the scale and speed suddenly required by the COVID-19 crisis. That’s because in normal times, the customer and market penalties for widespread “test and learn” can seem too high, and the organizational obstacles too steep. Shareholders of public companies demand immediate returns. Finance departments keep tight hold of the funds needed to move new initiatives forward quickly. Customers are often slow to adjust to new ways of doing things, with traditional adoption curves reflecting this inherent inertia. And organizational culture, with its deeply grooved silos, hinders agility and collaboration. As a result, companies often experiment at a pace that fails to match the rate of change around them, slowing their ability to learn fast enough to keep up.