Claims handling is a huge sector of the insurance industry where the mobile phones of CEOs are pinging to let them know that digital service in claims handling is arriving. How many dismiss this notification and miss its delivery will shape the sector for the next decade.
360Globalnet - which now partners with some of the world’s most efficient insurers - has been one company pivotal in the rise of digital claims technology based on no-code replacement of many manual processes with digital automation. In the context of changes in consumer behaviour and, of course, COVID, it’s easy to see why digital matters so much. Digital technology has generated unprecedented levels of operational efficiency in other sectors by automating processes that previously seemed like they would always need humans at keyboards and on phones. Automation can replace dull, repetitive and mistake-prone manual manipulation of processes with close-to-zero cost iteration.
Over the last decade, Amazon, Netflix, Uber and Airbnb have made it patently clear that the means of distribution and engagement are what really matters to generate consumer engagement and rising earnings.
The insurance sector, however, started its change from digital caterpillar to butterfly much more slowly - particularly when it came to claims. But because of pure economics and changes in end-user expectation, the sector is having to adapt or face the loss of hard-won customers. Every customer - personal or corporate - is a decision maker who is also a consumer of retail services, and expectations will be shaped by those experiences. If an insurer can offer massive operational efficiency and increased advocacy at the same time, they will advance… strongly.
360Globalnet believes that claims management will become virtually unrecognisable within a decade. The signs are already clear: economics and evolving customer behaviour will drive the changes, not the speed of adaptation of incumbents. Those who adapt and disrupt their own business models early will survive. For others, the attrition may be gradual but inevitable.
Changes will be spurred by customers but also environmental, regulatory and efficiency factors. The UK and France have passed laws banning the sale of petrol and diesel cars by 2040. The surge of EVs; autonomous and semi-autonomous vehicles; ridesharing, load sharing and over-the-air software and maintenance… all will fundamentally change the way risks are managed, insured and how claims are handled. And for the more complex claims handling which will inevitably arise, those who can drive efficiency through digital technology gain a huge advantage in both cost and account retention.
Many companies seek to adapt a piecemeal approach with the addition of point solutions to drive change. However, a point solution is a single part of a collection of processes to which all other processes may need to talk. In that interface lies friction, cost and compromise. This is why many of the largest insurers are turning to integrated no-code systems that can span the entire remit of claims while running parallel to the business. Those who need to, can interact and change what they need without joining IT development queues. Executives can aggregate the information they need.
The rise and rise of no-code is already changing markets far and wide based on four main drivers: workforce demographics, surging digital demand, the shortage (and cost) of IT development resources, and COVID.
Millennial workforces live and breathe technology and grow up expecting that their needs will be met in particular ways. This in turn drives their expectations at work and as consumers. This rapid speed of change means that hard-wired development - that is exceptionally expensive and slow - is caught between a rock of need and a hard place of cost. Finally, COVID has shown us all that sometimes change is forced on us, and if we aren’t able to adapt quickly, those who can will benefit.
This is where no-code claims technology starts to make complete sense. It opens the door to practitioners within businesses who are keen to innovate and build digital solutions. Suddenly, those on the front line can build efficiency into systems and processes without the need for slow and congested IT support.
No-code enables everybody. If you can use PowerPoint or Excel then you can build processes in no-code. This is a seismic shift, and the surge of no-code technology is flooding into all industries. As Microsoft said: “No-code will be the tool that we use to reach the next 500 million applications over the next five years”.
If you’d like to discover more, get in touch today to book your no obligation demonstration.
