How many emails hit your inbox heralding a new Insurtech innovation, the latest claims initiative, AI to solve operational challenges or yet another insurance conference to attend? Many experienced and esteemed individuals offer opinion and publish actionable content, yet what real progress has been made?
Where are we today?
Recent research carried out by 360Globalnet in the US reveals very interesting trends, and some counter-intuitive behavior.
With a few exceptions, when a carrier receives more than 20% of their claims via an online channel, they seem to be very pleased. The norm is below that figure, often in single digits. Too often insurer’s digital capability is not in evidence.
The research was based on 2 populations of carriers – below $1bn and above $1bn in DWP terms and included P & C and Life/Disability. The sample sizes were 122 (<$1Bn) and 81 (>$1Bn) respectively – enough to be statistically significant.
How easy is it for customers to complete business in a digital channel versus policy holders being steered down the traditional route of the contact center and hence engaging in a long-winded expensive process?
The <$1B Carrier Group
Less than half provided a capability to enable the reporting of a claim online. Amongst these, the “Claims” menu was generally visible on the home page but 20% of carriers have over-crowded claims landing pages lacking clarity or requiring more clicks to get to the right place.
Of those with digital capability, practically 60% required some sort of “log in” to report a claim and/or required the policy number. These two steps deter many customers, especially when a clearly visible telephone number captures their attention. Most claimants will select the easy option, i.e. they will call the claim in. In our experience it is highly unlikely that an account will be created for what is perceived to be a grudge, one-off process.
10% of carriers offered mobile apps but there is strong evidence that customers want to launch a claim directly from the carrier’s website.
The >$1B Carrier Group
The online “capability” of larger carriers was higher at close to 60% but over 70% of these again required an account and a log in to report a claim. From the websites surveyed only 2 were promoting an app, although we know that more have developed one.
Whilst the visible presence of a digital relationship was prominent in the top 10 there were hurdles which contribute to the inevitable outcome of low penetration in terms of a truly digital relationship and the benefits that this brings.
We draw a number of conclusions from our observations.
- The online channel for claim reporting seems to be there not because it is a strategic imperative, but because “We should be because other insurers are”.
- Digital is viewed as transactional not strategic; there is a lack of end-to-end thinking
- There is no new incentive to encourage use of the digital channel; the look and feel of carrier websites has changed little over the years.
- Despite some great technology in the market the industry is going nowhere fast in terms of highly automated low touch/no touch claims processes
- Attention must be paid to customer effort in designing world class processes – the more perceived effort required, the less use you will see
On the other hand, change is always gradual until the tipping point happens when change is sudden. Our existing customers are extending end-to-end digital claims across multiple products and multiple business units. A number of technology partners are moving from being partial product solutions to complete products; a status 360Globalnetr has already achieved,
360Globalnet is an independent digital technology and services business focused on the worldwide insurance industry. We provide the next generation claims and risk assessment technology that revolutionizes the customer experience, while dramatically lowering costs.
The business is owned by its management and invested in by DXC Technology in the USA, plus a number of seasoned insurance investors.
Our mission is to provide digital online platform technology that will revolutionize the insurance claims process, offering personal and business customers the same standard of experience as online retail.
Our cloud-based solution, 360SiteView, empowers you to deliver faster, simpler, and a more fraud resistant service by digitizing customer engagement – clear communication with rapid resolution. Worried about implementation? Don’t be, we can have you live under 5 days.
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