Claims Review 2019

I recently conducted a survey approaching a number of senior executives from different areas of the claims market, to understand their thoughts and opinions on a number of topical issues impacting the sector, to review 2019 and assess the market moving into 2020.

 

The individuals who contributed include:

 

 

Do you think we will see a consolidation in the number of law firms operating in the UK in 2020?

 

Graham   

It feels inevitable. We are in a world where you go big or go niche.

Rob

Natural response to the new MOJ reforms

Neil

I think we’ll only see this once the whiplash reforms are implemented and I don’t see this happening in 2020.

Martin

As much as anything this will be as a result of players exiting the market and running off their work in progress as opposed to M+A

Jon

Current market is quite saturated and many firms need to evolve or consolidate to survive

Jim

Given the fragmented nature of legal firms they will [like brokers] see continued consolidation

David        

Operating models are changing and value add reviews being completed about the work that should be passed to law firms.

 

 

 

 

Should the Insurance industry do more to attract top talent to work in the claims sector?

Graham

We can never do enough as an industry given the global competition for talent that now exists.

Rob

I believe claims undersells itself and doesn’t show the breadth of roles available to entrants. So yes, it should be attracting talent by being more descriptive and specific about roles rather than a blanket “claims” description. In addition, the industry should play more on the helping people aspect of the role.

Neil

There are so many varied opportunities for individuals and insurers will need to have a much wider range of skills in its workforce in order to compete.  I think some progress has been made in this but more will follow.

Martin

Historic perceptions of the relevant value of claims to an organisation are out of step at an industry level

Jon

Diversity in skill set is needed to attain the analytics and claims automation skills we need to accelerate our essential journey along the automation continuum to deliver higher levels of service with lower cost base.

Jim

Claims has always been at the poor end of the industry – more money is made selling products than servicing [same for most industries] Automation of simple claims will bring the need for technical skills into sharp focus in the next 5 years

 

 

 

 

Do you feel the perception of the CMC market has improved during 2019?

 

Graham

Still too many examples of CMC breaking the law. Very clear that the sanctions are not enough to deter.

Rob

Not especially. Some players remain on the fringes and some try to appear to be collaborative. However, insurers still have to challenge “errors” and be aware of fraud

Neil

The CMC market will have to do a lot of collaborative work with insurers and customers in order for the perception to improve! Bad practices of yesteryear are still evident – cold calling, making claims out of nothing, no fraud screening etc. – and no one likes these.

Martin

Jury is out pending the FCA authorisation and supervision processes taking affect

Jon

There is still too much negative press on nuisance calls, and inappropriate claims farming. You could argue that CMC’s were a significant factor in the collapse of Thomas Cook.

Jim

There is a slow and gradual “bringing them into the fold” process going on but as usual this is slow and suffers setbacks

 

 

 

 

Have insurers become more open to introducing new claims technology during 2019?

Rob

The bombardment of insurers with new tech continues apace but legacy and IT time remain obstacles. Several large insurers are investing in upgrades to existing platforms and using new insuretech products where they can easily sit alongside these platforms.

Neil

In my experience insurers have been open to this for some time now but the pace of adoption is quite slow.

Jim

Insurers appear more willing to “try and fail” with new technologies and the investment in them continues apace

David              

Multiple examples have hit the market concerning digital solutions in support of customers through the claims process

 

 

 

 

Do you feel the planned legal reforms will have a positive impact in 2020?

Graham

They are now so watered down from the original vision with many so unanswered questions that there will be no impact in 2020.

Neil

I don’t think they’ll happen in 2020.

Martin

Unlikely to happen until Oct 2020 therefore delaying the positive impacts

Jon

There is a risk that they do not become active in the proposed time scale. If they do hit the deadlines, there is a very real risk of process failures and detriment to all parties. The compensation portal is unlikely to be ready in time.

 

 

 

 

Is the claims repair market ready for the potential increase in the number of electric car/autonomous vehicle repairs?

Rob

As yet the numbers involved are tiny and I don’t see an issue for the market to grow with the adoption curve.

Graham          

If I can put my “Chairman of Thatcham” hat on for a moment there is significant investment and research from the VMs and organisations like Thatcham. The technology that is coming into the market over the next 5 years will be revolutionary and we simply have to be ready and an “industry” in its widest sense.

Neil

Society isn’t ready. The emergency services receive no training on how to deal with EVs. These are so very specialist, until these vehicles are much better understood I can see more being written-off for ease.

Jon

The investment required by the repair sector is huge. For example, there are only a handful of repairers authorised to repair Tesla’s. There is a high probability of customer detriment occurring as the industry does not have the skills, equipment and capacity to repair electric cars safely.

Jim

Electric cars are being outstripped in sales volumes by SUVs so it’s is still niche stuff. I don’t see anything yet which will drive consumer uptake in a massive way which then leads to constraints in the repair supply chain

 

 

 

 

Should more measures be introduced to prevent avoidable flooding?

Rob

I am not sure there is enough capital available to prevent floods. There needs to be a national conversation about how we use the land, where we build and how we mitigate risks where possible alongside a sensible plan for the inevitable and unstoppable occurrence of floods.

Jon

1) building on known flood plains should be illegal. 2) flooding can happen in most placed with pluvial downpours so we will never eradicate flooding. 3) known flood areas may benefit from additional measures to avoid / manage flood waters.

Jim

Flooding is one of those issues that gets up the agenda because “it happens again”. I think there is a bigger conversation about what areas will be sacrificed and when – insurers / flood re will need to be involved. In terms of avoidable it’s all avoidable if we take the measures – we just won’t do it as a society

 

 

 

 

How did insurers do at meeting Claims Customer’s expectations in 2019 compared to 2018?

Graham

I can only speak for my own organisation but the focus and commitment gets stronger every year.

Neil

It’s a very generalised answer.  Some insurers did well, others not so.  Better use of technology will be the key driver for customer satisfaction to soar.

Jon

Evidence I have seen shows a decline in CSAT.

Jim

Some improve and some go backwards in the face of ever rising expectations. There was no significant step forward made as an industry

 

 

 

 

In your opinion what was the best claims initiative of 2019?

 

Graham

No one initiative but the technology coming into the market is game changing.

Rob

The deployment of Tractable’s ai based vehicle assessment tools which are now starting to be able to create estimates of repair.

Neil

Ageas adopting the use of ‘Green Parts’ as part of its repair strategy.  The first ‘big’ insurer to do so.

Martin

The adoption of machine learning models into claims processes and customer journeys

Jon

Not sure on this one – possibly the broader initiatives on the industry’s support for its various charities.

Jim

L&G smart claims initiatives across small and large claims. Well thought through and focused on controlling costs whilst delivering customer service to genuine customers

David              

Response to the floods and risk of floods across the UK

 

 

 

Right International is a market leading recruitment firm who specialise in sourcing the top talent across the claims and wider insurance market.

 If you are looking to add to your team now or in the near future or are looking for your next career move, I would welcome the opportunity to help – please contact me.

 

If you would like a PDF version of this review, please email me.

 

All the best,

Gary Pike

Founder & MD

Right International Insurance Headhunters

At Right International our specialty is sourcing the top achievers for the Insurance Market. Get in touch.

 

 

 

 

 

 

*The thoughts and opinions expressed in this document are not mine or Right International’s, but the individuals that have engaged in this survey and given permission to publish their comments.

COMMENTS 0

Leave a Reply

Your email address will not be published. Required fields are marked *