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Form-free claims are the future of insurance, but the industry is slow on the uptake, according to the CEO of insurtech Bought By Many.
“It’s an innovation that should have happened years ago. The industry is playing catch up and this area has not received sufficient investment,” Steven Mendel told Insurance Business.
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“People do their banking or order groceries seamlessly on mobile devices, so it makes sense that they should be able to make a quick claim online with no forms,” he said.
Bought By Many this week launched Snap Claims, an online claims process which it says has no forms and has initially been rolled out to its unique pet insurance policies.
Just 6% of the UK’s 18 leading insurers offered claims digitally in 2017, according to an Altus Consulting report. Snap Claims asks a handful of questions, including the contact details of the customer’s vet, and will then get in touch with the vet directly to capture the details of the treatment and costs, and quickly arrange a payout, the firm said.
Policyholders are invited to submit a photo of receipts to speed up the process, but are still able to complete the process if they do not have any documents. They are also kept updated about the progress of their claim via text message and email.
“Most consumers have little choice but to endure existing claims processes. However, it’s clear people want convenience and companies that simplify the process will find it easier to attract loyal customers,” Mendel said. “It’s a feature that customers asked for, so we’re pleased we’re delivering what they want and improving their experience of insurance.”
The simplified claims service is one that the rest of the industry needs to get up to speed on, the CEO went on to say.
“Issues relating to liability and personal injury will be more complex and may need a more involved process, but all other claims should be able to be handled without the need for forms,” he said.
Having recently launched a travel insurance product for people with serious conditions that asks no questions about their medical history, Bought By Many has plans to launch more travel insurance products for specific conditions this year, and says it will work with underwriting partners to offer innovative solutions in other lines.
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