Driving claims transformation – KPMG Report
Article Synopsis :
The claims function is critical in deciding insurers’ profitability and competitiveness. To address evolving customer expectations fuelled by digital advances, insurers need to transform people, process and technology in the claims department.
In the featured article “Driving claims transformation: Reclaiming the insurance customer experience with digital tools”, the KPMG team highlight that emerging claims technology could revolutionise the traditional claims process and showcases how digital could impact the future of claims through practical examples. The article presents a small sample of game changing claims-handling innovations that, in their opinion, will be critical to insurers’ success in the future:
- Elevate insurance customer experience
- Reducing fraud losses
- Enhancing catastrophe response
The KPMG team go on to highlight that insurers should consider the following points while charting out their claims transformation strategy:
- Pilot radical initiatives in a controlled environment across a sample number of claims in order to test, learn and refine how to embed the innovation and, more importantly, have a clear vision of what needs to be put in place to execute before making significant investments.
- Introduce fresh thinking from outside the insurance sector; look to industries such as fast-moving consumer goods, gaming, and telecommunications, which are adopting innovation as matter of course.
- Equally, do not become a slow follower. History has shown that technology disrupts incumbents who believe they are too big to fail.
They also map out a day in the life of a traditional claims adjuster versus a digital claims adjuster which presents a great view of what the future could hold for a claims professional:
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Digital Insurer's CommentsClaims transformation is fast becoming a high priority on the strategic agenda of many insurers which is often executed in tandem with a broader digital transformation programme.
As insurers focus on digital business models, they need to provide claims experiences that are tailored for today and tomorrow’s digital-driven customers. Introducing the right technologies throughout the claims process that better engage customers in the event of a claim is one way of achieving this and the subsequent impact on customer loyalty and renewal rates could be substantial.
However, the customer experience is not the only area of focus for claims transformation. We agree with KPMG and believe the areas that can help insurers reduce their cost base and improve operational efficiency are improving fraud detection and responding better to catastrophes. There are an increasing amount of emerging technologies that can help insurers achieve both, in particular in the field of data analytics and the ‘Internet of Things’.
In order to achieve the benefits associated with claims transformation, we believe that insurance executives must also focus on creating an organisation that is ready for change. This is likely to require a radical shift in mindset and culture which must come from the top.
- Have a clear vision of what you want to achieve
- Experiment by focusing on small scale pilots
- Failure is acceptable if you learn from it
- Focus on the customer
- Proactively manage transition and change amongst employees
- Treat technology as the enabler, not necessarily the solution
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