Transforming The Claims Journey

Claims is a profound proof point — will you really protect the customer financially in times of duress? It is the basic purpose of insurers, but the factors affecting the financials of risk and protection are changing and getting harder. Mobility complicates what was a rather simple model; global warming is already attacking bottom-line performance and turning old risk models into antiques.

Something has to give — and it can’t be turning back on the purpose of protecting customers. There needs to be a rethink of property and casualty claims so that protecting the customer and delivering bottom-line performance is not an unsolvable equation.

Transform claims to protect both the customer and your financials.
Transform claims to protect both the customer and your financials.

The Future Customer

The challenge with infrequent engagement is that you have little insight into the human beings you protect, barring the moments of duress. There are two pieces to this challenge: 1) to get a deeper understanding of who your customers are, how they act, and what they expect; and 2) to make those insights an enterprise-wide asset so that teams are tuning decisions and operations in sync with customers. This is not a “you should do this because it’s the right thing to do” moment. This is a simple statement that your competitors survive and thrive on the churn of your customers.

An Insights-Driven Business

Flood insurance may be a good template: floodplain maps create an analytical backdrop to the extent to which a single storm will create damage — and storm models predict expected conditions and likely damage. Now put this template on steroids. Continuously updated analytic models informed by rich, situational models describe risk in substantially better ways than annualized policies. But running that business is different. Ingesting, federating, and decisioning on complex, dynamic internally- and externally-sourced data — and then applying that data with the customer to deliver a far more valuable experience while better defending margin will be the new differentiated core competency.

Digital

Situational risk is not an analog question. It depends on a robust digital platform and a rollcall of acronyms: IoT to capture real-time customer and environmental data; AI that can make sense of and decision on complex, diverse, and dynamic data; RPA to reduce cost and free up human capital to address extraordinarily more challenging issues. This is just the start of an obvious shift; you are now a digital business and need to build strategies, associated operating and economic models, and experiences that reflect a nimble, digital leader in a data-rich and risk-heavy market.

The CX Of Claims

Claims will continue to be the prove-it moment for insurers, proving you can protect customers and defend margin as risks abound be it mobility, global warming, or something other. Communication and cooperation remains fundamental in the claims process — but changes in nature. Out goes word-heavy and meaning-light communications that are barely read and less understood; in comes natural conversations that enable both parties to see and manage risk together. Out goes infrequent engagement; in comes perpetual engagement that gives customers insights, tools, and frames of reference. Out goes complex, opaque claims response and fulfillment; in comes rapid and informed response and fulfillment to turn collective risk management into customer affinity. This is the new bar. If you can’t clear it, other firms will.

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