Roundtable: Digital claims - how can insurers best reap the benefits of digital claims for customers?

Big bang or incremental change? How are you introducing digital technology into your claims process?

Taylor: It’s not just the insurers, but the regulator and customers who don’t necessarily want a big-bang approach. If we split the customer journey from the internal operation, and look at the former, starting at the front end is helpful because it’s hard to convince someone that didn’t begin [their journey] digitally to get digital. Forcing people into certain channels is always a struggle in terms of the quality of data you get.

Pandey: We have transitioned some parts of the [claims] journey to digital, but other parts where you have supply networks, resolution services etc. are not so easily digitised. We take an incremental approach, with the building blocks in the background, so when we come to that incremental change, the time lag is a lot smaller, as it’s within our control and the feedback gets quicker. Once you start digitising and the data points increase, you can see what works and what doesn’t.

Sampson: The journey has begun, but it’s an incremental one and we’re working constantly to make it better, especially as to the benefits of those end-to-end digital journeys. We look at how many customers can we provide a good outcome to at first contact, and for low-value claims that might mean settling it immediately. And those events drive up the use of automation, so that no one needs to look at them.

Who is leading who? Are you being led by policyholders in how you use digital technology for first notification of loss, and claims management, or having to hold their hand in accepting that this is the future?

Scott: The customers are driving the pace of the change and it’s about keeping up with their demands. Previously, we didn’t want to go big bang, but customers are now expecting that digital experience, and we need to make sure that the strategy is aligned to that. There’s frustration for some customers because we can’t quite move fast enough because we’re having to build the capability in the background.

Kill: There is a balance when building end-to-end processes – that it is very much about meeting customers [who want a digital experience] where they need to be, rather than trying to adopt that experience for everyone. There will be instances where customers don’t want an online experience, they want an empathy experience. The solution must be capable of meeting all requirements.

There is a balance when building end-to-end processes – that it is about meeting customers who want a digital experience where they need to be. There will be instances where customers don’t want an online experience, they want an empathy experience. The solution must be capable of meeting all requirements.”

Melanie Kill, Axa

Pandey: Looking at your channel strategy, you need to be able to cater to all customers. If the customer doesn’t get what they want through a digital journey, but they feel they are being forced down that journey, that’s not the right customer outcome. Internally this cost is a big one when you are going digital, but [the end result] is all about making that switch between channels as seamless as possible for customers.

Taylor: There are a few things that digital doesn’t do very well – it doesn’t do empathy and it doesn’t do intuition. Giving people the choice is important, for example if you put a form in front of someone, they’re not going to fill it all out, and if you put a telephone number in front of someone and give them options such as one, two or three, and then they’re going to press zero. It’s important to give that optionality, but if we think about ourselves too much and not the customer, then we will fall short.

Parkes: The aim of claims digitalisation is to take away the difficulties and friction the customer might usually experience, but they still need empathy and a rapport.

The proactiveness of handling a claim is key, especially in the commercial space, for example having a vehicle [so that the customer can get back] on the road. We have a huge focus on vehicle connectivity to help speed up and proactively deal with claims. That’s also driven for us by our brokers – it’s very much a partnership approach.

Evans: [At Zurich] we’re not dealing with simple products and it’s not a one-size-fits-all. With some of the digitisation we’ve been looking at what isn’t covered and why, and at whether we can take the customers through this journey digitally with empathy and care.

How do you manage the transition internally, and communicate it to staff who might be resistant when it comes to handling claims in a certain way?

Scott: Staff must be part of the initial engagement in the transition and aware of the strategy. To help staff transition we have carried out data training with frontline claims handlers, alongside levels of emotional intelligence training, so they are equipped to deal with more complex offline queries. Therefore, staff are driving the pace of change as well as customers.

Kill: We need to communicate that digitalisation can really help the claims handlers, for example, we have online claims tracking, which a lot of customers can use to interact with us; this leaves the claim handlers time to focus on more complex areas or where the customer needs are.

What we’re trying to do is to make sure claims handlers are fulfilling their potential. Everything should be prioritised and urgent in a claim, and it’s about how can we prioritise appropriately. Life events are required to be taken care of as part of our promise and that is what handlers do.”

Thomas Parkes, Flock

Pandey: You need to put in a lot of effort to ensure that people are digitally skilled for the future. We are talking to frontline staff and have an academy that has launched data courses, which help [staff] utilise new assets that are being built and create new job opportunities.

It’s really taking them on to the journey to show them that this is going to provide them with newer skills for the future. You don’t want to be left behind on that.

Parkes: What we’re trying to do is to make sure claims handlers are fulfilling their potential. There is nothing more upsetting than when you can’t help a customer because you need to take 20 data entries before you even get to the serious issue that needs to be looked at.

Everything should be prioritised and urgent in a claim, and it’s about how can we prioritise appropriately.

I became a claims handler as I wanted to help people, and you want to be empowered to do that. Claims handlers deliver the promise of insurance; it’s so important. Life events are required to be taken care of as part of our promise and that is what [handlers] do.

How important is it to select the right partners in any digital claims journey? Especially when their ability to integrate with your systems and processes might make or break the overall experience.

Mullin: It’s very important. At BGL Insurance, all our supply chain is integrated digitally, data is passed in real time to ensure a seamless customer journey. For example, the hire car is provided without the need for a middle team to re-assess the claim, as the repairer contacts the client directly following receipt of the instruction. There is also a requirement to ensure the supply chain communicates successfully and is able to provide updates digitally if requested, this is only effective if the updates are accurate and live.

This also stops the secondary calls coming back into the claims department. Again, accurate communication is the key, along with a digital approach for the customer if that is their preferred channel. Providing customers with channel choice and flexibility, at what can often be a challenging time, is important.

Bell: It is essential that, whichever supplier we use, they really understand our strategy and have the same values. That’s the first thing we look at: their values and what they’re trying to achieve for customers, and that must align with us. The digital and the capability comes next.

How important are quick and seamless payments to the overall digital claims experience? When all is said and done, and the claim has been settled how are you looking to reimburse policyholders, and are you planning to do this digitally too?

Dickson: We have spoken a lot about digitising the entire claims management process but we can’t forget about the last mile – smooth claim payout. It can offer policyholders fast and efficient claims settlement – using the payout method they prefer including direct debit or digital wallets – along with increased transparency and visibility into the payout process. Customers can feel empowered and gain peace of mind knowing that insurers have their best interest at heart.

Mullin: Technology allows businesses to pay customers on the same day, but customers should be given a choice. Some customers may prefer a cheque due to the timescales, particularly in a motor claim, where access to a hire vehicle for seven days provides more time for them to source an alternative vehicle if theirs is written off. We’ve found that customers tend to prefer payments paid directly into their accounts, as long as communication is provided on the next steps of the claim. Strong communication is key throughout the claims process.

Sampson: It’s also important to make it very clear to the customer what they’ve been paid and the value of their insurance. We give them a document that explains what they’ve been paid for, what they haven’t been paid for and if there’s any shortfall, then why that is. We try to make sure this lands on the same day as that payment lands in their bank accounts.

Evans: It’s about demonstrating the value of what they bought and articulating that in a simple, clear way to customers.

What does best-in-class claims look like?

Trott: It very much depends on who you’re talking to and what promises you’ve given. At Ecclesiastical, we’ve got quite a range of customers, some traditional customers, for example the Church of England make up 25% of our businesses. Traditionally they want to interact with us over the phone, they also want to write in, not even as an email. I don’t want to put everyone in that bracket, but some of our traditional customers would be up in arms if we forced the digital journey on them.

Whereas we’ve got heritage business with customers who are absolutely into that digital journey. One of the most interesting things we’ve done is to expand that digital offering not just to the claims process, but look at how it might help in other areas such as reducing energy bills. Because that’s where you get a real benefit; turning a grudge purchase into something that saves the customer money.

Brewin: Delivering a best-in-class claims experience is all about putting the customer experience first and assisting them with their preferred way. Some will choose online but some will prefer to speak to their insurer on the phone, some may expect an immediate payout to their digital wallet, while others will be happy with direct debit or even a cheque.

Delivering a best-in-class claims experience is all about putting the customer experience first and assisting them with their preferred way. Some will choose online but some will prefer to speak to their insurer on the phone, some may expect an immediate payout to their digital wallet, while others will be happy with direct debit or even a cheque."

Chia Brewin, PayPal

Bell: Our customers told us they wanted something that was easy to interact with when they wanted to interact with us. They didn’t want to feel like as soon as we handed something off to a supplier the journey felt different. It had to feel the same throughout. So, they started with Tesco, and they wanted the whole journey to feel like they were still with the Tesco, even if they were with a supplier.

It should be seamless for the customer, and feel like we are there to reassure and support them throughout. To make sure there was hand-holding if they needed it, even if it was a digital journey, which is quite hard to achieve.

Trott: You can force them down the digital route if that’s what they know they purchased and it’s transparent. That saves money for the company, and therefore ultimately saves money to the person who’s bought the insurance – that if you want to phone up, you might have to pay more. Some energy companies have gone to that model, where you can have an internet-only based tariff, although that’s probably a bit out of date now.

But you can force people down a digital journey if that’s what you’ve promised. The one thing that we don’t do very well as an industry is offer consistency, so you can have a really slick and efficient engagement at the renewal or buying stage, but then it all falls over when you try and do a policy change or make a claim.

Sampson: The digital journey needs to be tailored very much around the type of claim and risk. For example, if you go to your dentist and have a £50 claim, you don’t want to be speaking to us on the phone, you want to go onto an app, take a photo of your receipt and you’d like the money in your bank account the next day. Whereas if you’re telephoning us to say – very importantly – that you’ve been diagnosed with a serious illness, then that’s where we immediately take you out of the digital journey and to our centre of excellence.