How Connected Claims Can Deliver an Efficient Process

The battleground in UK motor claims has been dominated in recent years by rising claim costs and increasing premiums, creating a competitive market for motor insurers and challenges for corporates with large self-insured retention or captive arrangements. Controlling the supply chain both in respect to cost and service is ever more important as is the challenge of delivering fast-track settlements.

J2549_Car graphic_V1Claims departments need to work collaboratively with the supply chain to make the claims processes lean and effective, allowing more time to focus on the challenges of third-party claims and the associated spend.

Legal reforms and a string of government enquiries have largely failed to bring the kind of wholesale change the industry demands and that would positively impact the ability to control both the supply chain and indemnity spend more effectively. The result is that many problems remain in the system, and customers are unable to reap the benefits that would come with those changes.

As Motor Claims Product and Strategy Director at Broadspire UK, John Fearn has considerable experience with the latest tools and trends impacting volume services in the motor claims industry.

One of his duties is to promote Broadspire’s ‘Connected Claims Initiative,’ which will use the latest technology in the motor claims sector, such as crash detection technology and telematics data to help improve the speed and quality of notification following an accident.

“Connected Claims will notify the claims department automatically through crash detection algorithms, directly to a first notification of loss intake centre,” John said. “Arrangements for repair and updates of the repair process are driven through a technology solution that makes the process more easily managed and monitored through automation.”

On 24 May, John presented to the 2016 IBIS Global Summit, to explain the potential benefits of Connected Claims.

John Fearn

John Fearn: “TPAs build best in class supply chain, repair networks and achieve economies of scale”

“A technology-driven solution allows the TPA—managing claims on behalf of insurers, captives, brokers, MGA’s and corporates—to build a best-in-class supply chain, consolidating partners and repair networks, leading to greater control and economies of scale,” John said.

Connected Claims will assist with the management of the entire claims process including any third-party liability, removing failure demand from the claims operation, lowering claims spend and improving the customer experience.

“The reason things are so complicated in the UK is because of the non-fault claims approach, where repairs and hire services are provided to the non-fault party on a credit basis, which increases the overall cost of repair and alternative vehicle hire, as well as creating a tougher environment to handle the claims,” he said.

“Numerous organisations provide services at no cost, based on a referral model that generates the revenue, John said, further explaining that someone, such as the insurer or party at fault, ends up paying and in turn affects consumers’ premiums.

The Connected Claims Initiative is aimed at bringing control and consistency back to claims processes, which are heavily influenced by the speed and quality of the first notification of loss.

“This is the most important part of the claims process as it is how the claim journey begins and will impact the level of service the consumer receives,” John explained. “With greater control, comes greater opportunity to channel repair in to the supply chain partners that provide the best service levels to the customer.”

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