Once somewhat dismissed as an ‘add-on’ to the insurance proposition, the claims sector is increasingly taking its well-earned place at the centre of conversations on where the insurance industry goes next amid an evolving regulatory, economic and technological landscape.
But how has the claims environment evolved to get to this point?
Central to its progression has been the emphasis on putting the customer at the heart of the process. It’s a mindset shift propelled by regulatory changes, particularly the rollout of Consumer Duty which marks its first anniversary this month. These new rules have spelt out the responsibility the insurance market has to ‘regularly assess, test, understand and evidence’ the outcomes its customers receive.
The link between customer-centricity and claims far predates the introduction of Consumer Duty, with claims stalwarts across the market underscoring that this evolution goes beyond any single mandate. Fiona Sperry (pictured left), head of complex claims at QBE Europe noted that over the course of the last 20 years, she has seen increasing acknowledgement of the human at the centre of the claims process.
“There’s more understanding now that this is not just a piece of paper but somebody’s livelihood that you’re putting your hands on, so doing the right thing is crucial,” she said. “That’s what we look for in our team. When we recruit, we’re looking for people with the moral and ethical imperative to do the right thing. And I don’t think that was always the case.”
Looking to when she started her insurance career, Sperry noted the industry as a whole cared less about getting back to people in good time. Overall, she said, there was more focus on the commerciality of a business and protecting its bottom line than there was on thinking about the customer – and creating a more holistic, long-term orientated view on success and profitability. “As a young adjuster, I was taught to look very hard at whether the policy applies, whereas now I teach my team to look very hard at making sure the policy applies – starting with what’s covered, not what isn’t covered,” she said.
Nicola Dryden (pictured right), chief client officer at Sedgwick, emphasised the increasing value being placed on a great claims experience. Consumer Duty and the broader regulatory landscape have a part to play in that, she said, but the reality is that empathy needs to be deeply embedded within the ethos underpinning the claims process, irrespective of regulation.
At its core, claims success is driven by accountability, collaboration and listening – the key ingredients to empathy. Those working in the claims landscape must never lose sight of the reality that while this might be one of hundreds of claims they’ve handled, it’s likely a new, and very daunting, experience for their client. The best claims handlers and adjusters are those equipped with the right training and tools – but also the ones empowered to display and utilise empathy in order to support their customers.
Dryden noted that empathy is a natural part of the DNA of most people. “But there are also a lot of people who have got it, but just need to be educated a bit more about understanding it and how to use those skills of listening and putting yourself in another person’s shoes.”
Both Sperry and Dryden underscored the impact new technologies have had. Looking back to the days when customers might be waiting four weeks for a letter confirming their claim had been received, Sperry highlighted how technology is coupling with the ambition of wanting to do better by clients, resulting in faster turnaround times and much greater accessibility.
“Another thing that’s changing slowly is how we’re understanding both the client and the broker’s point of view,” she said. “The broker is often stuck between a client and an insurer, and it’s not where they want to be. We need to understand how that human dynamic works so we can support that with the right technology that gives the adjuster time to talk to people, provides documents quickly and helps with the quick assessment of quantum.”
Technology – particularly given the rapid advancement of generative AI (GenAI) – is under the spotlight in the claims sector as key players assess how to use it to automate easily standardised tasks. GenAI has the potential to speed up the whole claims journey, while helping to keep expenses down, but more importantly than that, it has the potential to free up the time of claims professionals to use where they can truly add value.
“[Used correctly] GenAI could prove a real value-add for our people, and in turn for our clients,” Dryden said. “It can empower our people to be going out and focusing on our clients who are dealing with pretty horrific circumstances in the event of a claim. They can provide that empathy piece that’s so important - which is what they should be doing, rather than endlessly looking over documents and bits of paper.”
