Leading the way in claims technology
A quiet revolution is bringing a string of benefits to firms that leverage tech in the insurance sector, and a tougher economy is only providing more incentive to improve claims systems
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THE INSURANCE INDUSTRY has a long-standing reputation for being set in its ways and resistant to change. Some even characterise it as the grumpy relative of the wider finance sector.
After all, paper-based, manual processes have proved profitable for many years and have perhaps made the incentives to adopt new technology relatively weak until recent times.
There’s no doubt that the pandemic rattled some in the sector to take the plunge and try new ways of doing business, but now high inflation and a less-forgiving economy are adding to the impetus.
“Insurance is undergoing a digital revolution, specifically in the past
“Due to legacy systems inside insurance companies and underwriters, some of them still use claim forms which are handwritten, scanned and sent back. And receipt of the completed claim form can be weeks down the path from when the accident or the incident occurred,” Herford says.
Insurers are looking to mobile technology to resolve this bottleneck.
“Real-time incident alerts through mobile phones to the insurer at the time of an accident can speed up notification of the incident, including sending a notification to multiple parties,” says
Van Rensburg.
“Machine learning will evolve the information, but it will always require a human to evaluate and provide data on an ongoing basis,” De Villiers says.
On top of a time dividend, the market will also get an impartiality dividend. “The benefit of rule-based automation is you won’t see any bias in how decisions are made,” she says. This is important when risks are increasing everywhere – people have a lot riding on their insurance policies and want to receive a fair outcome in the case of a loss.
“The insurance claim world is intimidating. Within the industry, we take for granted how nervous people are about insurance,” Herford says. “They’re worried that if they lodge a claim, it’ll be rejected or denied for no good reason.”
Loss is by definition a traumatic event, and the stakes are higher than simple economics. Using AI might help alleviate some of this fear about unfairness in claims, but helping people understand their insurance outcomes will always require a deft human touch.
“When there’s so much emotion, and perhaps personal injury in a motor vehicle accident, you need those people and their empathy and also their emotional intelligence to really take over,” Herford says. “AI will never replace the relationship a broker has with an insured that relies on them.”
Top 5 industries in which generative AI will transform work
Most people love technology if it makes their lives easier, but there are not many who aren’t just a little apprehensive about how it could affect their job or skill-set value.
A recent report from Accenture showed that generative AI will transform work across many industries, but insurance had the second-highest potential for change of the 20 sectors surveyed.
“The key to success is balance,” Van Rensburg says. “Enabling technology to take care of the simple, straightforward claims processes ensures the team can concentrate on relationships and more complex decisions.
“We believe that there will always be a need for people, and ensuring that you bring your team along on the journey is crucial to success in rolling out any change.”
Workers will need to adjust to new, tech-enhanced environments, but a key takeaway is that humans are essential to both. They provide the input and analyse the output in the human-technology relationship – the process itself may become a black box, but humans feed the box and consume the Easter eggs produced.
The vehicles, vessels and equipment 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 at 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 #1 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.
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Hello Claims is an end-to-end motor assessment and repair solution. We provide award-winning services infused with groundbreaking technology to handle motor vehicle claims on behalf of insurance business and fleet managers. Hello Claims commenced in 2014 as a small business based in Sydney, NSW. Since then, we have expanded to multiple locations across Australia and New Zealand while partnering with amazing clients. Our service offerings include complex assessing; repairs; remote digital assessing; live video assessing; on-site assessing; towing and car hire.
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“Brokers will be able to have more positive conversations and interactions with their customers, with immediate insights available on how the claim is progressing”
Mary-Ann Van Rensburg,
NTI
In Partnership with
Herford is no stranger to dealing with the outdated legacy systems of some firms and says they are a constant issue when introducing his company’s smarter technology into the claims process.
“[These are] decade-old IT platforms that were never built to handle the requirements of today,” he says. “Trying to integrate those legacy systems into a state-of-the-art system, it's a real struggle. And to essentially scrap the legacy systems and pivot into a whole new platform, many insurers are kind of reluctant to take that leap.”
NTI also sees a wealth of areas that are ripe for improvement in the claims process. Head of claims operations Mary-Ann Van Rensburg cites first notification of loss (FNOL); checking the policy; collecting of claims information; communicating to brokers and clients throughout the life cycle of the claim; and calculating the payment amount as some of the key focus points.
Insurers can be notified in a number of ways after a loss event, and this can be a slow process at some companies.
Stage one of the project has already been released as a hail-dent repair solution, which is essentially a scanner that allows for a vehicle to be driven through a device and a quotation prepared within one minute.
“Instead of being able to assess six to eight vehicles a day, it’s easily acceptable for us to process 50 to 100. Essentially, we have authorised the car to be repaired before other companies have even seen the vehicle.”
The result is more productive, faster assessment and repair, and at the end of the process a time-rich human to answer any questions and provide friendly service. Welcome to the future of claims.
“Improving innovative processes through the utilisation of technology means insurers will be able to scale for growth without increasing resources”
Leonie De Villiers,
NTI
five years, which has been expedited as a result of economic pressures,” says Leonie De Villiers, national manager for key claims partnerships and strategic delivery at specialist insurer NTI.
While there are still holdouts who are wary of investing in new processes and training as inflation remains well above historical averages, the benefits of change are increasingly outweighing the costs across much of the insurance sector.
“Insurers must take the opportunities to reduce financial pressure, and technology is one area that can assist. Improving innovative processes through the utilisation of technology means insurers will be able to scale for growth without increasing resources,” De Villiers says.
Those on the frontlines of the claims ecosystem agree.
“I think that now is the exact time that [clients] need to start looking at systems not only to improve efficiencies but to provide ease of use and happiness for their internal claims teams,” says managing director Nick Herford at motor assessing and repair company Hello Claims.
Industry experts
Christopher Lee
MFAA head credit adviser, Finsure Finance and Insurance
Mary-Ann Van Rensburg
NTI
Leonie De Villiers
NTI
Nick Herford
Hello Claims
Industry experts
Nick Herford started his career as a panel beater and has worked extensively on light and heavy motor. After managing many assessing and claims teams for large insurance companies (including dealing with complex claims for over $10 million) and working on major catastrophe events across the globe, Herford co-founded Hello Claims in 2014 and is the company’s managing director. He is a senior associate of ANZIIF, a fellow of AICLA and a member of the Institute of Automotive Mechanical Engineers; and holds numerous business qualifications.
Hello Claims
Nick Herford
As national manager – key claims partnerships and strategic delivery at NTI, Leonie De Villiers has over 20 years’ industry experience and a deep understanding of the claims process. Having held a number of critical roles across claims, De Villiers has led the strategic development and delivery of process and service innovations around customer experience at NTI. She champions customer-centric thinking and is passionate about cultivating a culture of continuous improvement.
NTI
Leonie De Villiers
As head of claims operations at NTI, Mary-Ann Van Rensburg leads the department with responsibility for lodgement, fulfilment and finalisation of claims. Van Rensburg has more than 17 years’ experience in claims leadership roles at various companies. She is responsible for ensuring NTI Claims continues to evaluate emerging trends in the market that can benefit business growth and productivity improvements.
NTI
Mary-Ann Van Rensburg
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Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
Christopher Lee
MFAA head credit adviser, Finsure Finance and Insurance
Mary-Ann Van Rensburg
NTI
Leonie De Villiers
NTI
Nick Herford
Hello Claims
Industry experts
Nick Herford started his career as a panel beater and has worked extensively on light and heavy motor. After managing many assessing and claims teams for large insurance companies (including dealing with complex claims for over $10 million) and working on major catastrophe events across the globe, Herford co-founded Hello Claims in 2014 and is the company’s managing director. He is a senior associate of ANZIIF, a fellow of AICLA and a member of the Institute of Automotive Mechanical Engineers; and holds numerous business qualifications.
Hello Claims
Nick Herford
As national manager – key claims partnerships and strategic delivery at NTI, Leonie De Villiers has over 20 years’ industry experience and a deep understanding of the claims process. Having held a number of critical roles across claims, De Villiers has led the strategic development and delivery of process and service innovations around customer experience at NTI. She champions customer-centric thinking and is passionate about cultivating a culture of continuous improvement.
NTI
Leonie De Villiers
As head of claims operations at NTI, Mary-Ann Van Rensburg leads the department with responsibility for lodgement, fulfilment and finalisation of claims. Van Rensburg has more than 17 years’ experience in claims leadership roles at various companies. She is responsible for ensuring NTI Claims continues to evaluate emerging trends in the market that can benefit business growth and productivity improvements.
NTI
Mary-Ann Van Rensburg
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
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Old dogs, new tricks
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Nick Herford
Hello Claims
Leonie De Villiers
NTI
Mary-Ann Van Rensburg
NTI
Christopher Lee
MFAA head credit adviser, Finsure Finance and Insurance
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Mark HarChristopher Leeon
As head of claims operations at NTI, Mary-Ann Van Rensburg leads the department with responsibility for lodgement, fulfilment and finalisation of claims. Van Rensburg has more than 17 years’ experience in claims leadership roles at various companies. She is responsible for ensuring NTI Claims continues to evaluate emerging trends in the market that can benefit business growth and productivity improvements.
NTI
Mary-Ann Van Rensburg
As national manager – key claims partnerships and strategic delivery at NTI, Leonie De Villiers has over 20 years’ industry experience and a deep understanding of the claims process. Having held a number of critical roles across claims, De Villiers has led the strategic development and delivery of process and service innovations around customer experience at NTI. She champions customer-centric thinking and is passionate about cultivating a culture of continuous improvement.
NTI
Leonie De Villiers
Nick Herford started his career as a panel beater and has worked extensively on light and heavy motor. After managing many assessing and claims teams for large insurance companies (including dealing with complex claims for over $10 million) and working on major catastrophe events across the globe, Herford co-founded Hello Claims in 2014 and is the company’s managing director. He is a senior associate of ANZIIF, a fellow of AICLA and a member of the Institute of Automotive Mechanical Engineers; and holds numerous business qualifications.
Hello Claims
Nick Herford
The virtual elephant in the room
Published 14 August 2023
“To essentially scrap the legacy systems and pivot into a whole new platform, many insurers are kind of reluctant to take that leap”
Nick Herford,
Hello Claims
Banking
0%
10%
20%
30%
40%
50%
Higher potential for automation
Higher potential
for augmentation
Lower potential for automation or augmentation
Percentage of work-time distribution by industry and potential AI impact*
Source: Accenture research report: A New Era of Generative AI for Everyone
60%
Insurance
Software and platforms
Capital markets
Energy
Non-language tasks
*Based on these industries’ employment levels in the US in 2021
At tech-enabled insurers, over 90% of pricing in simpler lines will be automated
by 2030
Source: McKinsey & Company, “Insurance productivity 2030: Reimagining the insurer for the future”
Expected growth in automated pricing
Reducing manual processes elsewhere in the system can also lead to time efficiencies. Once the notification has been completed and sent to the insurer, the insurer will review the incident and confirm whether the policy underwriting requirements have been met.
“These checks most often are manually done by a claims team member, [but] robotic process automation can allow the tasks or activities to be automatically checked without any manual intervention,” Van Rensburg says.
The use of virtual assistants to collect customer information, handle the submission of damage reports for FNOL, recommend service providers, and help customers schedule service appointments is also growing.
“Digital transformation and adoption of technology solutions can be used as a long-term strategy to reduce higher costs and increase productivity, automation and resource optimisation by optimising productivity and resourcing,” De Villiers says.
Improving customer satisfaction sometimes involves taking existing technology and integrating it more deeply into the customer experience to produce data that can be leveraged for better outcomes.
Unlike the typical post-experience surveys asking for ratings, Hello Claims revolutionises the feedback process. It offers insured and third-party stakeholders a dynamic live link that enables them to provide feedback at every step of their journey. If neutral or unhappy feedback is sent in, client managers are instantly alerted and reach out to the stakeholders to swiftly address any concerns. This proactive approach ensures real-time issue resolution, delivering the utmost attention and care to clients and their needs.
Many tech improvements are all about making the lives of brokers easier, but having to navigate too many different systems can end up being counterproductive. Hello Claims solves this problem by integrating everything into one portal.
“They can control a claim and communicate with an insurer or a third-party repairer, all from our portal with all of the file notes, communication and everything stored in there for them to easily access along with live updates,” Herford says.
These kinds of technology-driven shortcuts provide the dividend of time – something every broker wants more of and that brings the pendulum back to the human side of the equation.
“Brokers will be able to have more positive conversations and interactions with their customers, with immediate insights available on how the claim is progressing,” Van Rensburg says.
Leveraging existing frameworks
The cost of falling behind
“Improved technology, specifically on communication, and clarity on where the claims are tracking will provide the broker confidence in the insurer and the claims process. This will improve loyalty with the broker, customer and insurer,” De Villiers says.
Some of these changes are already being set in motion. “We have been working with a university in Australia and have PhD graduates working on our augmented reality and artificial intelligence solution in quantifying losses of a certain size when it comes to smash repairs in claims management,” Herford says.
While many brokers could probably name a few ‘grumpy relative’ types in the insurance world who remain stuck in their ways, the chances are that the momentum towards technological change started by the pandemic and now continued by economic pressures – not to mention improving economies of scale – will ensure that status quo players are quickly sidelined.
A report by McKinsey predicts that to stay competitive, carriers will need to radically transform their operating models by 2030. Digitally enabled claims handlers will need to work alongside algorithms, helping customers on their journeys and handling exceptions.
According to McKinsey, nearly half the work done by claims workers will be automated by 2030, but the role of the claims handler will not be eliminated; rather, it will continually evolve.
Van Rensburg points to vehicle damage assessments as one example of an area ripe for transformation.
“This is a manual task that takes a lot of time and human resources: the assessor should methodically and accurately estimate all aspects of damage to determine which vehicle elements should be fixed or replaced based on information provided by manufacturers,” she says. “These data sets provide a more accurate assessment with machine learning algorithms compared to the human eye. Due to computer vision, it’s possible to locate the damage and analyse its extent to a vehicle within seconds.”
Claims management processes are rife with other areas heavy with manual review of documents that require thorough attention to avoid errors and prevent fraud.
“With advanced machine learning techniques, businesses can harness non-traditional data to automate claim management, detect incremental anomaly patterns, as well as minimise false positives that allow differentiating between genuine and fake data points,” De Villiers says.
The number of manual administrative tasks, such as rekeying data or manually executing analyses, will rapidly shrink, while pricing in simpler lines will be over 90% automated by 2030 using technology. The resulting boost in productivity and enhanced customer experience will benefit brokers enormously.
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Copyright © 2023 KM Business Information Australia Pty Ltd
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AU
Copyright © 2023 KM Business Information Australia Pty Ltd
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