A customer’s bad claims experience and the overall reputation of the insurer can have a correlating impact on claims costs, agreed expert panel

“When you have grumblings from customers that they want to leave because of a poor claims experience, that is a hidden cost that doesn’t always get highlighted.”

Peter Emson-Sewell MS Amlin

“The claims department and claims department’s supply chain is the heartbeat of any insurance company. We are what the policyholder is buying; it’s how we react, where we make the most difference, so when we look at the true cost of claims, we should always be considering our reputation.”

Peter Edgar RSA

In terms of other factors that influence claims costs, Edgar noted investment in insurtechs, while Emson-Sewell said there could be hidden operational costs within governance requirements, for example around staffing and system costs. As this isn’t tangible as such, it can be difficult to predict, he added.

According to Vater, there are challenges ahead in terms of factors that could drive claims costs – primarily, of course, this is centred around Covid-19. For example, Vater said accurate forecasting around claims volumes has been tricky and there are also coronavirus claims themselves to consider.

Equally, the FCA is “bearing teeth”, he said, noting the additional compliance costs that may surround dual pricing actions.

Katie Scott Insurance Times Ist December 2020

Cost optimisation  whilst also raising customer satisfaction is a priority to meet the challenges highlighted above. Add in the empowering and upskilling of claims teams and you have a heady mix of innovation, change management and transformation to tackle.

No-Code insurance platforms are being leveraged by many insurers and brokers. Those like 360SiteViewmanage, triage and orchestrate the lifecycle of a claim from FNOL to Settlement .

They deliver Amazonesque user experience and customer journeys AND deliver formidable supply chain digital management capabilities.

Whilst straight-through processing (STP) and automation are key benefits they also optimise the mix of automation and human engagement. Humans still utilise the smartest and most  diverse algorithms and more compec claims require that combination of homo sapiens and BOTS.

Ai has its place in counter-fraud but remember that criminals and professional opportunists can also leverage AI and be a step ahead. Automation is an ideal place for fraudsters to seek out vulnerable processes and workflows.

"Fraud is also still a prominent issue for the claims sector, noted Gordon Vater, director of the carrier practice at Gallagher Bassett. He said he has seen an uptick in fire claims for out buildings that allegedly contain a lot of contents as well as some “dubious” claims from SMEs around retail premises.

Furthermore, BI claims are also being affected by potential fraud due to financial desperation caused by the Covid-19 pandemic – Vater added that claims management companies could assist insureds in getting their claims paid, however this could lead to inflation."

Katie Scott Insurance Times 

That is where end to end claims platforms like 360SiteView make the difference.