In the May 28 blog post, I suggested that claims and risk management are taking a prominent place in digital transformations. Today, I will review recent articles that describe potential impacts and possible time frames. I will also note sessions at our 2017 Insurance-Canada Executive Forum, which will provide unique claims thought leadership.
Telematics is not Just for Underwriters
As reflected in the title of a recent blog post – “Telematics: A Claims Adjuster’s New BFF” – Karen Pauli, Principal at Strategy Meets Action, reckons that the vehicular technology has much to offer in the claims area.
Pauli notes that telematics tools typically enter insurance carriers via the rating or underwriting areas. However, this should just be the start. Pauli argues that “telematics can be a way to give claims adjusters a customer service tool that, incidentally, improves claims financial outcomes.”
As a starting point, claims managers know that the critical First Notice of Loss (FNOL) needs to be generated as soon after the incident; a challenging objective as many drivers don’t have composure after a collision.
Pauli’s solution: “Leading telematics technology can generate the FNOL from the actual impact dynamics.” This could include towing services, location of body shops, even emergency medical responses if warranted.
The result? According to Pauli:
Being the technology-enabled “first on the scene,” and providing much-needed assistance at a stressful time puts any claims adjuster on the fast track to BFF status. And, returning to Claims Adjusting 101, it helps with the positive management of claims costs.
Insurance 2.0 and Claims
An increasing proportion of insurers view the automation of existing manual processes as table stakes. The real prize comes with what some call Insurance 2.0 – wholesale transformation of insurance products, processes, distribution, and service.
In this context, Claims could be critical disruptors. Writing in PropertyCasualty360, Tom King, senior director at Pegasystems and Keith Gage, vice president at Cap Gemini, argue that the Internet of Things (IoT) ” is not an IT implementation — it is a change of business model.”
Specifically relating to Claims, a recent Capgemini report suggested that, “the value of claims relating to risk are poised to suffer a potential loss in value of 20 to 40 percent.”
The article’s authors argue:
There is no doubt that a world where car accidents are a thing of the past, medical conditions are diagnosed and prevented before they occur, and household accidents like flooding or fire are prevented before they happen, would improve life considerably. The truth is that technology and innovation are also allowing us to move closer and closer to preventing, if not eliminating, risk completely.
Want more information?
Two Sessions at #ICEF2017 will focus on Claims and Risk Management: