Managing motor claims now and in the future

IN Partnership with

Threading the needle between regulation, technology and speed in commercial motor claims can only be achieved by managing expectations and communicating well – and this approach underpins the NTI process

BENJAMIN FRANKLIN is said to have coined the aphorism “time is money” in an essay entitled “Advice to a Young Tradesman”. So perhaps it’s not that surprising that specialist insurer NTI focuses so much energy on speeding up the claims process in the modern trade of commercial motor vehicle repair. “We're always looking at ways of basically removing the red tape and getting out of our own way,” says NTI head of claims services Tim Pontifex.

The vehicles, vessels and equipment that NTI’s customers rely on have become safer, faster and cleaner. The cargoes they carry are now more delicate and time-sensitive than ever before. With over 50 years’ experience in the insurance industry, NTI has always been successful in finding new ways to keep its customers moving, across the heavy vehicle, mobile plant and equipment and marine industries. Its combination of tailored products, experienced people, accredited repair and recovery networks and industry advocacy has seen NTI ranked as Australia’s number one specialist insurer. Yet insurance is just a piece of paper, a promise. It’s not until you really need an insurer that you understand its point of difference – the NTI Difference.

Find out more

Time saved by Accident Assist in the commercial repair process

“We’re always looking at ways of basically removing the red tape and getting out of our own way”

Tim Pontifex, NTI

NTI is dedicated to identifying and reducing as many pain points as possible. When a commercial vehicle insured with NTI goes to one of its authorised smash repairers, work begins right away to get it back on the road faster. “The repairer has what we call automatic authority. This basically means they can commence repairs straightaway and don’t have to wait for an assessor to attend and assess the vehicle,” says Pontifex. NTI also procures parts in a cost-effective way on behalf of the repairer for a large percentage of the repairs that it authorises. “[Due to] size and scale, and relationships with original equipment manufacturers, we're able to procure parts at a discount to control the cost of parts and help reduce claims costs, but it also helps us access parts faster,” Pontifex says.

Waiting for a part or an assessor report can take days or even weeks, resulting in major losses for commercial motor operators, who only make money when their vehicles are back on the road working for them. The initiatives are part of NTI’s Accident Assist program, which Pontifex says aims to get vehicles back on the road faster and reduce the stress of a crash and its aftermath. “[It’s] basically a combination of having available internal

expertise from our claims consultants through to our assessing team who are empowered to make decisions throughout the claims process,” he says. Over nearly 20 years, NTI has built up a network of industry-leading service providers to enable the repair of vehicles in a safe, quality, timely and cost-effective way. Contacting Accident Assist also means the client doesn’t need to go out and get quotes on their own because NTI will guide them through the process and arrange towing of the vehicle to an authorised repairer when required. “That's where we find clients really like the process,” Pontifex says. “It’s a seamless process; our claims team work closely with our assessing teams, our repairer networks and our tow operators.” He says independent research carried out a few years ago shows that the use of such systems as automatic authority and centralised parts procurement through an NTI Premium Repairer result in average time savings of around nine days in the repair process.

But even the most streamlined of processes are susceptible to friction when communication is slow or less than effective. Missing information can be a major drag on expediting a claim. “The sooner we get it the better, because we can act on it, we can get the claim lodged, we can make sure that we get all the information required,” says NTI head of claims operations Mary-Ann Van Rensburg. “Sometimes what we do see is when there's ineffective communication, either from the broker or from the client themselves, that may sometimes delay the process.” Van Rensburg says setting expectations is important when it comes to moving the claim forward, including making it clear why a particular item of information is needed. Most of the cases that take longer to progress are exceptions, often where an expert is needed. “For example, if there were some engine damage or mechanical damage, we might require bringing in external experts, [and their] report might also sometimes slow down the claims process,” she says. Potential damage can be controlled in such longer claims cases by managing client expectations effectively. “We have to make sure we set expectations very clearly on the required information to progress the claim with our clients, the brokers, and they can then set their expectations,” she says. Standards around communication and keeping claims on track are backed by the 2020 General Insurance Code of Practice, which regulates such things as when an insurer needs to communicate a decision following the receipt of all necessary information, and the time frames for responses to enquiries and providing regular updates on claims. “There's some good rules, in my view, and positive controls in place from a regulatory perspective to make sure we do recognise and make sure that there's continuous contact with the broker and with the client,” Van Rensburg says.

“We have to be careful we don’t miss that opportunity to have conversations. From a broker perspective, there’s always [the view] that the one thing we should never lose is that relationship aspect”

Mary-Ann Van Rensburg, NTI

It’s often said that, compared to other industries such as finance, insurance has been slow to adopt technology. “In terms of technology, we have to be looking for ways to do that better," Van Rensburg says. “If we need to ask for documentation, is there something we can do as an insurer to not have that responsibility sit with the broker or the client?” One example might be the common practice of taking a photo of a driver’s licence and sending it off to a broker. This could be replaced by a QR code scan that would go directly to the insurer, reducing one step in the process.

With the pandemic in the rear-view mirror, there is no doubt that automation will accelerate and supply chain problems will ease with respect to procuring both parts and replacement vehicles. But challenges remain for the future of electric vehicles, mainly in terms of the repairer network and securing a skilled workforce. Businesses in Australia now have access to over 20 different models of commercial EV utility vehicles, vans and trucks, although the overall proportion of sales remains low, even against a background of higher sales of new light and heavy commercial vehicles thanks to higher freight volumes and pandemic-related subsidies. NTI is active in promoting EVs, and partners with manufacturers, repairers, vehicle recovery operators, industry associations and others to ensure that insurance and roadside assistance products are available to support clients with EV vehicles in their fleets. “We recently supported one of our repairers in our network by joining them in an electric vehicle training program,” says Pontifex. “We're there for them because we know they’ll support us ultimately.” It’s not a small ask. Repairers who are repairing EV vehicles require specialised workshop equipment, diagnostic tools, safety training, and technical data and repair methods. Significant capital investment is needed, as well as ongoing expenditure to ensure compliance with OEM standards and new technology, and this is likely to place upwards pressure on repair costs in the years ahead. But the future challenge of maintaining trust in the insurer-broker-client nexus as EV numbers rise can also be successfully navigated through careful management of expectations during the claims process. “With the technology improvements, making sure we’ve got the right people on board, being very clear about expectations once the claim is lodged – if we do all that well, you’ll see improved relationships, improved engagement from a customer satisfaction perspective,” Van Rensburg says. “If you take your client and broker on the journey of that claim, you’ll just make it a much easier process for them.” Like Benjamin Franklin's, that may turn out to be timeless advice.

Streamlining the process

Challenges of an electric future

Published 22 May 2023

9 days

Source: Independent research commissioned by NTI

Key time frames around claims*

Within 10 business days

Source: 2020 General Insurance Code of Practice

Time for insurer to respond to routine enquiries from a customer about a claim’s progress

Within 10 business days

Time from receipt of claim for insurer to inform customer that further information is needed to make decision

Within 5 business days

Time after appointing loss assessor or loss adjuster for insurer to inform customer that this has been done

Within 12 weeks of engagement

Time in which any external expert who is needed to assess a claim has to report to insurer

Within 10 business days

Time after insurer has received all relevant information when a decision to accept or deny a claim must be made and conveyed

Within 4 months

Time from receipt of claim within which a decision must be made before insurer has to refer customer to complaints process

*Exceptions apply in some circumstances

Getting a commercial vehicle back on the road is a complex task ripe with potential for bottlenecks, application snarls, compartmentalisation of parties with vastly different skill sets, and communication misfires. The customer can easily be forgotten in the whirlwind of steps that occur between crash and repair.

Communication is key

“As the process gets more automated, we have to be careful we don’t miss that opportunity to have conversations. From a broker perspective, there's always [the view] that the one thing we should never lose is that relationship aspect,” Van Rensburg says. Maintaining the insurer relationship with both the broker and the client is key to the future of the industry in terms of service levels and the robust flow of information to and from the market. “That would be one of our challenges from a commercial perspective – making sure that while we look for transformational, innovative ways to get claims lodged quicker, authorised quicker, and don't have examples of slow claims, [that] we don't lose that personal touch,” she says.

The promise and pitfalls of technology

RSS

Sitemap

About us

Conditions of Use

Terms & conditions

People

Specialty

Best in Insurance

Resources

Risk Management

News

RSS

Sitemap

About us

Conditions of Use

Terms & conditions

People

Specialty

Best in Insurance

Resources

Risk Management

News

RSS

Sitemap

About us

Conditions of Use

Terms & conditions

People

Specialty

Best in Insurance

Resources

Risk Management

News