ILC ARTICLE

What role can supporting technology play in controlling cost?


Keeping pace with technology can be a strain on resources in the short-term, but applied correctly it can bring substantial cost benefits in the long-term.

However, to make new tech work for your business requires a practical approach.

Manjit Rana, General Manager, Clearspeed, explained, “We’re often too fixated on new technology and then trying to apply it to the industry. What we should do is identify the problem we want to solve and then look for the right technology to solve it. And that tech doesn’t have to come from our industry; there is a lot of innovative stuff outside the sector.”

Manjit was speaking to delegates during a panel debate – What role can supporting technology play in controlling cost? – at ILC’s Home and Property Conference, which took place at Silverstone Race Circuit in November.

He was joined on stage by Emma Bazard, Strategic Client Lead, Restore Digital/Pulse; Leah Davies, Director Client Success, CoreLogic; and Carla McDonald, Director – Product Management, LexisNexis Risk Solutions.

They agreed that integrating tech from triage to settlement can improve efficiency and reduce costs but said there were key trends driving change at the moment.

One of them is self-service, although in the age of Consumer Duty delivering that consistently and in a way that results in good outcomes every time requires a huge technological effort.

Emma said, “Our survey found that AI and self-service will drive the biggest changes in claims. This can lead to improved volume handling and quicker resolutions, and it can also reduce the resource needed per claim. That doesn’t mean cutting headcount but using your expertise more effectively to manage complex claims or surges.”

Leah agreed, and emphasised that tech also needs to deliver a single version of the truth that is accessible to everyone throughout the claims journey. That requires trust and transparency between insurer and supplier, but it can bring efficiency savings.

She said, “Sharing data so everyone can follow the claims journey in real time can streamline the process, enable quicker decision-making and reduce costs. It can also improve supply chain relationships as it means insurers don’t have to chase their suppliers for data.”

Data

It is this data, said Carla, that can yield the greatest efficiencies. She said the insights that can be gleaned by collating and interpreting data can help the industry better understand the customer, the journey, the risks and the product.

She said “Data is not a crystal ball, but it is the next best thing to a crystal ball. It’s about the three P’s: property, perils, and the person.”

She explained that data can help underwriters manage risk by providing information about the property regardless of who has lived there. This can highlight risk factors and claims history.

It can also identify perils such as climate change, offering insurers insights into severity, frequency and geography, while also providing them with much greater understanding of the policyholder and their claims history across multiple lines.

Carla said, “Our research has found a correlation between a person’s motor claims history and home claims history, so the data can be invaluable in helping insurers set pricing and combat fraud.”

However, to make tech work insurers need to be prepared to tap into outside expertise. Emma emphasised that insurers should not expect to be experts in every area, so finding the right partner was critical.

She concluded, “Insurers need to stay in their lane and work with experts to provide solutions, and they should take an agnostic approach as to who they work with in order to deliver a bespoke and often cheaper solution.”

ILC’s Home & Property Conference was headline sponsored by Claims Consortium Group; Gold Sponsors Rainbow Restorations, Catalyst, Clearspeed, LexisNexis Risk Solutions, Perfect Group, Polygon, Pulse, and Wiser Academy; and Silver Sponsors Crawford, eVolution Claims Management, Home Repair Network, ICEYE, Prime Disaster Response, Safeline Environmental and SD Claims.

ILC’s Home & Property division is backed by Corporate Partners: Allied Universal, Clearway, Corelogic, DAC Beachcroft, Geobear, ICAB, Innovation Group, Sedgwick, and Verisk.

EVENTS

Upcoming Event


Home Claims News

Insurer Partners

AGEAS
INSURE THE BOX

Industry Body Partners

Insights Partners

Home Corporate Partners

INNOVATION-GROUP