Results from our industry survey
Earlier this year, Altus partnered with our friends at Spixii to carry out a survey via chatbot, asking insurance businesses to share their progress on digitalising claims management.
We received responses from a range of industry players across product lines, from large-scale insurers and managing general agents (MGAs) through to third party administrators (TPAs) and technology vendors.
What is clear is that virtually all insurers who took part are on a claims transformation journey - although participation in a chatbot-based survey potentially suggests a tendency to lean towards technological solutions!
Our approach to the survey was to break claims down into its core processes, and to ask those taking part to select and discuss which two of the follow they consider most important:
In terms of early themes, we do see a significant focus on claims recording / first notification of loss (FNOL), as has been the trend of the last few years. This is reflected in the digital maturity of claims recording processes, as seen through our DigitalBar research, with customers notifying insurers via online forms, customer portals, and in the London Market, the use of tools to automate the validation of electronic claim forms (ECFs).
There has, however, been a tangible move towards automating the claims process end-to-end for simpler, low value claims, and using technology to support and enhance decision making in more complex claims.
This includes the use of data analytics to recreate loss scenarios and determine liability, video streaming to enable decisions to be made by claims handlers without site visits, and using machine learning models to determine quantum and the most appropriate method of settlement. At the back-end, insurers are working closely with vendors operating in the payments space to improve the speed of indemnity.
Most of those who responded have projects underway or in plan to implement improved digital capabilities in the next 6 to 24 months, with the remainder still in the early stages of defining a strategy for this, ultimately improving the experience for customers at the moment for truth of an Insurance product.