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The Case for Insurance Claims Excellence in 4 Steps

June 27, 2016
Posted by Gareth King

2016-06-27_121917Adjuno 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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Gareth King – Senior Insurance Product Manager, Adjuno
Gareth is an expert in supply chain management software and has worked in the industry for over 14 years, specialising in the retail and insurance sectors. He currently manages the insurance product portfolio and future roadmap for Adjuno, who are a leading supplier of web-based supply chain software. Gareth’s knowledge and hands on experience has guaranteed the successful implementation of supply chain solutions to clients including Marks & Spencer, New Look, Randall & Quilter, AXA and Zurich Insurance.