The Case for Insurance Claims Excellence in 4 Steps
June 27, 2016
Adjuno recently attended the London Claims Forum on 21st June 2016, it was the 11th annual Market force event and attracts experts from both the London Market and Personal lines. This event is about charting claims transformation in the digital age and Adjuno were there to absorb key insights from thought leaders to help shape our product development roadmap.
One particular session by keynote speaker Phil Godwin, Head of Claims at Lloyd’s of London really struck a chord with us. Phil was at pains to point out that claims excellence needs to begin at the point of placing the insurance policy. Not just from the First Notification of Loss (FNOL). It’s paramount to have front loaded investment when drawing up the right contract for the cover required and the risk involved. Taking the necessary time upfront to get this part spot on ensures that cost savings can be made when the claim arises. And without compromising the need to provide a first-class customer service in what’s a price sensitive market, where customer loyalty pays dividend.
Here are 4 steps to follow to achieve claims excellence from the point of placing the policy:
1. Have a clear constructed policy: Use clear, concise, accurate and unambiguous wording from the outset. Having clarity on what the exact risk is within the description is absolutely paramount.
2. Remove the risk of underinsurance: A sure-fire way to guarantee a complaint or disgruntled customer is by writing an insurance policy that means a worst-case scenario is likely to exceed the maximum amount that can be paid out, therefore resulting in economic losses to the claimant. Take time to make sure that the coverage is correct.
3. Share your claims philosophy/charter: It doesn’t matter if your customers’ claims are handled in-house or by 3rd party management agents, you still need to ensure that your claims philosophy is documented, shared and understood by all those involved. Your philosophy should be officially acknowledged and you need to be confident that it can be carried out.
4. Carry out dry run testing: Lastly, test some worst-case claim scenarios, including ones which test the wording and scope of the policy. This way, there is less chance of a nasty surprise. And in the event of a claim you already have a similar scenario mapped out.
These 4 steps don’t come without their challenges. With regards to step 3, sharing your claims philosophy, this can be difficult to impart. You need to ensure that all your suppliers including; Loss Adjusters, Managing Agents and Lawyers, to name just a few, recognise their importance.
It’s important to carry out regular auditing and collect customer feedback to know how you and your partners are performing in this area.
Phil also talked about how it was imperative to have the right experts and professionals in place to manage your suppliers as they can be trans-national or locally based.Strong supplier relationships are increasingly important. It’s better to have confidence that you can call on the same suppliers when needed further down the line, and that they are primed toeffectively service your claims. This gives you and your underwriters more assurance in placing business and delivering claims excellence to your customers.
To summarise the session, Phil also spoke about how using technology and automation during the insurance process will help to unite trading partners so that even if people are operating quite some distance from one another, they can work as if they were local.
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We have found them to be an excellent business partner. Through the implementation of both their supply chain and sourcing software they have more than proven themselves in giving us a product that functions the way we need it to. LIMA has been a fantastic supply chain visibility tool, calculating real accurate landed cost position throughout the order lifecycle. The LIBERTY software matches our product sourcing business needs perfectly. PLM systems I’ve previously used, often bring lots of issues through implementation, but these guys managed this and I’ve got highly satisfied users.John Amm - GM Global Sourcing, Myer
The solution has realised more benefits than we initially thought possible. Claims notifications are being handled in a fraction of the time. Suppliers are making fewer calls into the office and quality scores have increased dramatically. All of this can only have had a positive impact on the customer experienceMartin Ashfield, head of commercial property claims, AXA
The system alerts us to exceptions against our plan, allowing us to focus our attentions on solving the real issues in the supply chain. Having a comprehensive audit trail of events for everyone to see has resulted in significantly improved service levels from our suppliers and agents.Darren Walker, head of generics buying and UK trading, Alliance Healthcare
Now our buyers can exchange photographs with suppliers and have a real-time dialogue as they develop styles, while buyers out in the Far East can send detailed and accurate information back to their teams in the UK. It has certainly cut lead times and reduced errors.Maxine Walter, supply chain co-ordination manager, New Look
The time it takes to compile reports has been significantly reduced; a report which used to take five whole days to complete is now accomplished within a single day!Sam Brown, Responsible Sourcing Co-ordinator - John Lewis.