In the USA admin and policy costs increased by 34% over the last decade according to McKinsey and there is no reason to feel that Europe or the APAC regions have experienced anything far different. Now is the time to improve the combined operation ratio by 5% points but how do to that without a parallel increase in IT costs as you invest in yet more technology solutions?
The first port of call might to be to embrace pay-as-you-go licensing and No-Code software and platforms. That puts control back in the hands of line of business leaders and staff. Instead of having to rely in vendors’ developers and consultants you can leverage the skills at the front line to innovate and iterate – continuous improvement and a focus on the customer whether personal or business. Some platforms like Google’s Unqork are general purpose meaning you must start from scratch and do require comparatively more training.
Domain specific no-code platforms like 360Globalnet’s claims management platform come with business accelerators, digital processes and very fast time to value. The same can be said of HUGHUB when it comes to selling and distribution, mid-term adjustments and real customer-focused CRM. Avoid Capex, large upfront costs, adopt a subscription or pay per claim processed model and enjoy major upgrades free of extra costs and long lead-times.
What other advice does McKinsey offer? Focus on:
- Procurement Excellence
- Robust and resilient end-to-end claims model
- Pursue underwriting excellence
- Right operating model to support changing customer and market needs.
Let’s look at how 360Globalnet supports insurers, brokers and MGAs achieve these goals
I ferreted out a Forbes article by Bernard Marr in which he states “Construction is an industry where 35% of costs are accounted for by material waste and remedial work”
It is likely that insurers face similar costs in their disaster repair and restoration (DR&R) claims and escape of water, drainage and subsidence claims. One of our customers saves £25,000 a DR&R claim making an improvement to the bottom line of at least £25m a year.
The orchestration and communications capabilities of 360SiteView deliver effective management of the supply chain backed up by the same data and analytics capabilities Marr states are vital to measure performance against SLAs, alert supply chain management of deviations and tackle the costs charged by contractors and supply chain partners. McKinsey talks of a 7% to 11% reduction in base spending.
360Globalnet went one step further in the UK setting up digitally transformed service companies to improve customer satisfaction, reduce costs and remove a lot of hassle for the insurer’s claim handlers and supply chain team.
Robust and resilient end-to-end claims models
Whilst you often see this in one or two lines of business it is rare to see it across all categories of claims. Adding new categories normally takes as long as the first, adds considerable licensing costs and you find customers being asked to phone call centres instead of being able to complete FNOL online from any device of their choice and manage the whole process from FNOL to settlement from phones and laptops.
360SiteView digitally manages all claims categories from accidental damage in the home to Business Interruption Claims. From P&L Motor to Commercial Fleets.. From CAT claims to pet cats and dogs. One platform for all claims, end-to-end and minimise training and change management burdens. Robustly and resiliently hosted on Amazon’s AWS for scalability and security meaning that central IT can focus on core systems of record and legacy systems
Pursue Underwriting Excellence
Take commercial insurance which is mostly sold and serviced via brokers. It is vital to attract business in line with underwriting capabilities and growth strategies ad yet take a regular task- re-broking. It is painful. Time consuming and collecting all the data for accurate underwriting fraught with difficulty. That was made even more challenging with lock-down when site visits were banned and local restrictions are liable to happen at any time.
360Globalnet deployed a virtual solution called D.A.V.E. to address that issue and has comprehensive tools to analyse the data required from commercial customers to write new business and renewals. Much of that data is hidden as unstructured data and 360Retrieve fills a major gap between narrow AI solutions and broad and lengthy NLP and deep learning solutions to help automate processes and substantially reduce manual analysis.
The right Operating Model and Digital Capabilities.
Nearly half of respondents to McKinsey’s research state that process disruptions in digitisation and remote working are the biggest operational challenges.
360SiteView was designed from the beginning as a cloud-native claims management platform that embodies work-from-home (WFH) and work-from-office (WFO) and hybrid models to plan ahead and anticipate changes induced by the pandemic.
WFH does mean less face-to-face interaction making it easier to miss things like spotting large losses early to avoid under-reserving. Claims management systems must overcome that so that in addition to digital workflows and automation, communications and orchestration of tasks and activities still allows claim adjusters, fraud teams and supply chain staff to exchange ideas and analyse data. It is more important than ever that claims are categorised and automatically routed to the individuals and teams with the right skills profiles to handle specific claims.
Straight-though-processing and one-touch processing are important but still must allow for policy holders to talk to claims handlers whenever they need or want to. And whatever device they a claims platform like 360SiteView ensures everyone is working from the same, single digital record to ensure everyone at the insurer, its brokers, TPAs, supply chain partners is ‘singing from the same hymn sheet’ i.e. in harmony. That requires redaction as a key feature of claims platforms to maintain security and GDPR compliance.
Platforms like 360SiteView combine the best of automation with human intuition to deliver the optimal customer user-experience and claims journeys. And every claims journey is optimised for the specific claims using rules engines and conditional branching to keep processes as short and simple as possible without compromising data analysis and decisioning.
ollectively, the property-and-casualty (P&C) industry has not substantially improved its cost structure in the past 15 years. In large part, this is because traditional P&C insurers are slow to make substantial changes to how they operate. The industry can no longer afford to continue in this manner, however, as the impact of the pandemic has created, or in some cases exacerbated, balance sheet and operational issues—particularly for midsize P&C carriers.