Insurance Post Claims Club Summit 2017 - What happened?
This year Insurance Post’s Claims Club Summit 2017, held on the 27th September, focused on how claims can adapt and respond to a rapidly changing world. In order to cover such a broad topic in one day the Insurance Post put together a programme of varied speakers, and here is what we learnt....
1. There is a protection gap
Julian Enoizi, the CEO of Pool Re, brought to light the protection gap and moral hazard that government pools can allow for, with on average only 30% of customers in the US buying cat insurance over the past 3 years. The changing terror threat and the industry's adaptation to this, be it through new products or risk management, was also discussed. However, with new products comes new claims challenges and the question seems to be, with so much intangible risk how do you ensure you are ready to respond to the wide variety of claims this can bring?
2. Claims handling is 'The Moment of Truth'
We heard from Sverre Bjerkeli, the CEO of Protector, on how, as the insurers of the borough of Kensington and Chelsea, they have responded to the Grenfell tower disaster efficiently and empathetically. The focus was on competence, compassion, speed and being open with the insured, media and claimants. They have also sought to avoid litigation costs to maximise the funds available to those affected, while balancing the time pressures of liability considerations and helping those in need. Overall it seems that in the face of such a catastrophic tragedy, Protector have rethought the claims handling process in an agile and effective way to maximise their impact.
3. It’s all about adapting
85% of the Fortune 500 companies listed in 1955 are now gone and the reason for this is their inability to adapt to change. We heard about the wide range of technology that can be used in claims, from repair vs. total loss analysis to fraud detection, the possibilities seems endless. The good news is these advances will facilitate the increasing focus on customer experience, be it through speed of service, or freeing up more time for problem solving and risks management, it will encourage a more holistic approach to claims handling and customer service.
4. But are insurers ready for change?
One statistic suggests that 73% of insurers lack the internal core skills necessary for innovation. Which leads to the question, in a time of so much innovation, are we ready for it? With increasing focus on customer service, and therefore claims, it seems that insurers need to use data to determine what can be done in house and what will require external expertise, making the next stage all about partnerships and flexibility. Most digital insurers have very sophisticated front-end interfaces, however currently there is less focus on the back-end. Therefore as this increasingly becomes a focus, it's up to claims handlers to step in and provide their expertise to ensure that these partnerships benefit everyone.
5. Claims handlers may be the new farmers...
Attracting and retaining young talent in claims is seen as one of the biggest challenges in this sector. We heard from a panel, which included our own Lucinda Sainsbury, on how claims can attract more millennials through promoting insurance as a career at an earlier stage in education, using the correct social media and offering a variety of schemes depending on age and experience, while generally being more visible and adaptive to different generation’s needs and values. For those of you worried that AI is going to take over the world, it was also discussed how it can actually take care of more menial tasks making entry level jobs much more attractive.
Footnote: NGIN works closely with schools and universities to discuss the career opportunities in insurance, if you want to get involved or have any ideas on how we can develop this, please get in contact via our website.
