Claims function to be one of the early beneficiaries of InsurTech

Much has been written of late about how the insurtech movement is transforming the industry. While some of these solutions are actually in use, many are still conceptual and speculative and adoption may be anticipated in the future. But make no mistake – the majority of these technologies will be adopted in time and they will ultimately transform the ways in which insurance products are created, priced, packaged, marketed, sold, distributed and serviced. And the claims function along with the insurance policyholders who incur those claims are the most likely early beneficiaries, with auto insurance leading the way.

In a 2017 survey of 400 North American claims executives by Insurance Nexus, a significant 78% of respondents confirmed that “the American insurance claims industry is in the midst of significant disruption” and 82% confirmed that “our executive teams are dedicated to transforming the claims function.” Claims innovation ranked as the most important key project for 61% of the audience, and 60% agreed that “my organization has a specific plan for how they are going to achieve claims innovation, utilizing technology, focused on customer experience and meeting the challenges of disruption”.

While claims organizations are busy trying to figure out how to contain the rising numbers and costs of auto claims, and piloting insurtech solutions at the same time to help accomplish that, the customer experience for policyholders who have been involved in these accidents is often getting overlooked. Most of us had assumed — wrongly, it turns out — that the recent trend of declining auto claims frequency would continue. Most expected that auto claims might even decline further as accident avoidance and automated driver assistance technology, and other autonomous features, enter the roadways. Finally, the very accident avoidance technology whose main purpose was to reduce accidents has actually increased the cost and severity of repairing these technology-laden vehicles which become involved in accidents (frequently with other older-model, less well-equipped cars).

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By | 2017-06-16T05:23:05+00:00 June 16th, 2017|Categories: All Articles, News|Tags: , , |0 Comments

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