Insurer has some slack but it must brace for rise in claims and hit to topline growth.
Sign of the times as other global insures warn of similar trend. Rising claims and worse still higher cost BI ones in the vanguard. With hit to the topline profits invariably suffer and cost saving becomes a priority.
Yet customers demand ever more digitally delightful claims handling as they compare their CX with Amazon and supermarkets with that from insurers.
End-to-end claims management platforms that can deliver that digital acceleration from FNOL to settled claim without adding overall to the claims technology costs become priceless. In parallel they had better deliver better KPIs than before e.g.
- Customer sat scores in mid 90% range
- NPS 80 and rising
- Claims cycle reduction of 40%
- Lemonade class A&D low-cost claims settlement in seconds
- Opex reduction 45%
- Reduction indemnity costs 9%
These results are achieved by 360Globalnet with household name insurers from Australia to the USA.
"The lot of a European insurer is almost as thankless as that of a Japanese bank. Growth is sluggish, nasty surprises lurk (storms and pestilence on one hand, zombie lenders on the other) and the value of investment portfolios yo-yos, triggering writedowns."
Lex in the FT 22nd May
Seek solace from digital claims management platforms that don't land you with CAPEX requests.
Like most companies, Generali has opted out of providing future guidance, but claims will inevitably rise as a result of the pandemic. Meeting them will get harder as more bonds move into negative rate territory. Maturing bonds will most likely be replaced with lower-yielding ones, although Generali’s minimum negative guarantee products — which only guarantee, at a minimum, a limited negative return to investors when rates have cratered — ensure it still gleans some spread. Topline growth will also suffer. Grounded aircraft suggest moribund prospects for travel insurance, a €250m business. Lost wages do not encourage people to take out life insurance. Such sales as are still conducted face-to-face are wilting during the pandemic.