“Playing it safe now, understandable as it might feel to do so, is often the worst option."
McKinsey Digital April 22nd 2020
It’s easy to say that, but at the same time, C-Suite priorities are changing rapidly to include
- Deferring Capex requests
- Hiring freeze
- Re-evaluating ongoing projects
- Don't ask for any major core system upgrades
- Meet increasingly higher customer expectations for service
Who would want to be a claims leader in times like this! Your policyholders have relied on the world's best in online buying and servicing experiences. Order on Amazon today and they still deliver quickly and keep you informed on delivery status all along the way.
Many Insurance Customers ask, why can't my insurer do the same?
Like it or not, Claims leaders are being asked, “why have you not digitally accelerated the claims process after all the millions spent on system modernization over the years. You have improved the Customer Experience with point solutions for auto, but what about Business Interruption, Cyber, Liability, Property, and others?
What options do you have for Customer Engagement in Claims?
- Build your own on top of your existing Claims system of record.
- Choose from best of breed 'Point Solutions' to integrate a custom solution
- Chose a configurable, digital claims platform that reduces cost, enables fast time to implementation, and is an end to end solution
Let’s examine each of these approaches in a little more detail.
1) Build your own Customer Engagement system on top of your Claims system of record.
This approach allows an Insurer to custom develop a Digital Customer Engagement layer for their claims process to their exact specification, but at what time and cost? Custom development efforts can take significant time and resources to deliver the final product. In many cases, by the time the project goes live the requirements have changed or weren’t quite on the mark to begin with resulting in the need for further, costly, time consuming changes.
2) Choose from best of breed 'Point Solutions' to integrate a custom solution
Much like the custom developed solution, this can be costly and time consuming to first select and procure each point solution and integrate them into a coherent solution. They are all very capable but only deliver on parts of the claims value chain.
3) Configurable, Digital Claims Management Platforms like 360GlobalNet
A configurable solution allows an Insurer to customize the customer engagement layer very quickly, providing an opportunity to test and learn from the market, incorporating learnings back into the platform even more quickly.
With a pay as you go model, low or no Capex costs make the solution much more affordable.
With one end to end solution and one digital claim file, all parties involved in the claims process have access to the same information at the same time, greatly reducing the volume of calls to the call center, and improving customer satisfaction
The 360GlobalNet solution has the added benefit of being able to analyse both structured and unstructured data in the claims process, and then taking action based on that data.
All of the above is possible without replacing or dramatically changing the core systems of record that many insurers have spent significant time and money implementing over the last several years. Integration with these core platforms can occur overtime, while realizing the benefits of the Digital Claims Management platform from day one.
In summary, while there are many options, all with their pros and cons, we believe the approach that provides the fastest time to market, with the lowest cost, is to choose a configurable, digital claims management platform like the our 360SiteView platform is the best option. This type of solution will allow Insurers to make the kind of bold moves McKinsey advocates for in their article, with the most flexibility, speed to market, lowest cost, and lowest risk.
Digital strategy in a time of crisis McKinsey Digital
What will be the new normal for claims offices and WFH? Insurtech World
Every company knows how to pilot new digital initiatives in “normal” times, but very few do so at the scale and speed suddenly required by the COVID-19 crisis. That’s because in normal times, the customer and market penalties for widespread “test and learn” can seem too high, and the organizational obstacles too steep.