For insurers, the claims process is one of those “moments of truth,” a real opportunity to show their customers that they made the right choice of service provider. As such, it’s a great way for an insurer to differentiate and delight customers over time. This will pay back with high satisfaction and increased loyalty.
Given that, it’s really a cause for concern that P&C insurers in Europe and Latin America (EALA) admit that their claims operations are running inflexible legacy systems that are not up to the task.
This is the key insight from our Accenture survey of senior claims executives at P&C insurers throughout Europe. Facing rising customer expectations, a climb in fraudulent claims, new technologies being available, an increase in natural disasters, and more, many of these insurers plan to make substantial investments in improving their claims functions.
At the heart of the problem for many of our survey respondents is the fact that their claims management systems are just not adaptable enough. That is especially the case in terms of allowing changes in system behavior and business processes, and in addressing consumers’ evolving needs.
According the survey, their biggest challenges fit into three categories:
- The customer’s rising expectations and low trust.
- The need to minimize loss costs and claims fraud.
- The constraints imposed by their IT legacy.
You won’t be surprised to learn that most P&C insurers in EALA are planning some significant investment in claims for the year ahead—an average of €16 million over the next three years, according to survey respondents.
Two-thirds plan to use tactical optimization to enhance their claims function, with the balance favoring transformation. But around a third have ambitious plans to invest in flexible, modern platforms that will equip them to raise customer satisfaction, reduce risks and optimize costs. It is those companies who are positioning themselves at the forefront of a changing global insurance sector.
*In the next blog, I will delve deeper into insurers’ strategic priorities for claims.