"Successful digital transformations are rare. But companies that get six factors right can flip the odds of success from 30% to 80%."
BCG Research
BCG say that "Business led modular technology & data platforms are vital to achieve this doubling of digital transformation success rates".
The slow to change, complex and costly core claims systems that insurers have relied on to manage claims from FNOL to settlement are no longer sustainable.
COVID put the nail in that coffin as customers expectations were set by Amazon and other online service providers
Now the dust is beginning to settle at last, there are three clear takeaways insurers can focus on when looking to 2021.
1) Putting customers, not internal processes, first.
The retail sector has spent the last decade coddling and caressing customers with the same compassion as a mother with her newborn child. Expectations have been amplified massively along the way and any customer experience that isn’t seamless risks breeding frustration and resentment.
In a recent report by Insurance Times, an expert panel agreed that reputation was a hidden cost for claims. For every action there’s a reaction, with strong correlations between bad policyholder claims experiences and the related claim costs.
Technology has enabled giants such as Amazon to provide customers with a ‘wrap around’ experience leaving customers confident, relaxed and informed through their channels of choice. 360Globalnet has helped global insurers do the same with real time updates triggering automatically in claims journeys.
Legacy platforms are often restrictive digitally, expensive and slow to adapt but 360Globalnet’s no-code digital claims technology can work as a standalone system… or it can wrap around such legacy systems, reinvigorating them like a flower in the sun complete with the digital capabilities policyholders expect.
From eFNOL, automated text/email updates and digital workflows to 3rd party integration and automated settlement capability, all in a low cost and fast to implement platform. In a digital world filled with followers, subscribers and a free flow of opinion through social media, insurance leaders will inspire loyalty when customers are put first.
2. Cost optimisation
2020 has seen the FCA weigh in to protect customers against artificial price optimisation that delivers the same products at different prices depending on customer elasticity. This means competition becomes focused massively more strongly on outstanding service and cost reduction. Dual pricing, much like Donald Trump’s presidency, will soon to be a thing of the past.
This brings cost optimisation to the fore. Some slow moving insurers are heading towards the Maginot Line but 360Globalnet is providing many with the path to bypass it altogether. It puts business process management back in the hands of claims practitioners, allowing orchestration of the entire supply chain and automation of tasks throughout the entire life cycle. This leaves Claims Handlers to manage the more complex claims where empathy and compassion are needed.
If you'd like find how we can optimise the costs inherent in the claims process whilst also putting your customers first, go here.
3. Improving fraud detection
Looking in the rear-view mirror has been the bread-and-butter method for insurers and underwriters to plan for the future, but this doesn’t help in identifying fraud happening live. To make things harder, as a result of COVID, David Taylor of Mulsanne recently shared on Instech London’s ‘Data Is The New Oil’ webinar that anti-fraud teams are finding it harder to knowledge share now that they’re working from home.
Technology is now the bastion in the battle of fraud detection. Insurers amass reservoirs of data in the form of free text and unstructured which often holds all the clues needed. But whilst they can access it, they can’t analyse it.
360Globalnet’s unstructured data analysis technology takes the onus away from claims handlers by automatically reviewing every claim, regardless of format, before claims handlers brew a cup of tea and sit at their desk in the mornings. Claims run through a set of bespoke automated rule sets which, for example, trigger when geo or law firm or peril hotspots are flagged that may indicate potentially fraudulent claims.
A good example in Travel Insurance is that Barcelona police no longer provide crime reference numbers so fraudsters know it’s a good place to lose a Rolex!
To see how Mulsanne have saved £4.5m in fraud detection with the help of 360Globalnet, feel free to check out what Mulsanne ‘s David Taylor had to say during the Instech London’s ‘Data Is The New Oil’, here.
More detail and insights on fraud detection can be found here.
To learn more about our unstructured data technology, 360Retrieve, check out this page.
Start 2021 with the platform that BCG recognises as a critical success factor. The other five success factors are: -
- An integrated strategy with clear and measurable goals
- Leadership commitment from the CEO through middle management to team members
- Deploy high calibre talent
- Apply an agile mindset that drives broader adoption
- Effective monitoring of progress towards defined outcomes.
Quo vadis? Insurers globally are turning to 360Globalnet
Looking back on 2020, insurers globally have been fighting out-of-control wildfires ignited by COVID, the Financial Conduct Authority (FCA) rulings and accelerated customer digital uptake. 360Globalnet has been assisting agile industry leaders through the smoke every step of the way with no-code digital claims technology. Now the dust is beginning to settle at last, there are three clear take-aways insurers need to focus on when looking to 2021.
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