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May 30, 2019

Innovation in the claims process will help change perceptions of the insurance industry

By GlobalData Financial

The claims process is the part of the insurance value chain that could benefit from innovation with positive effects for both consumers and insurers. This can clearly be seen in the motor insurance space.

The claims process is seen by many as the moment of truth, and can be extremely stressful for policyholders. GlobalData’s UK Private Motor Insurance: Market Dynamics & Opportunities 2018 report found that consumers feel there is a lack of transparency, and in some instances they feel removed from the equation. As the industry looks to address this issue, we have seen a number of new and innovative approaches that aim to streamline the claims process across the motor insurance market.

One example is Aviva, which recently launched the Your Car Repair portal. This enables customers to manage their motor claims themselves by selecting from a number of repairers at a date and time that is convenient for them, while also arranging a courtesy car following a motor claim.  Research from Aviva highlighted that 92% of consumers would choose to manage their claim if they could, indicating that the launch of the portal will be well received by policyholders.

Snapsheet and Bdeo are examples of other approaches to revolutionising the claims process. They are largely driven by the application of the latest technologies rather than empowering customers. Snapsheet leverages mobile devices to streamline motor insurance claims, allowing policyholders to obtain estimates and settle claims through the use of a smartphone app. In a recent funding round, Snapsheet raised $29m to accelerate its expansion – which suggests the concept has a strong future.

Bdeo takes a slightly different approach but ultimately has the same aim of improving the efficiency of the claims process with innovation. Instead of utilising a smartphone app, Bdeo allows policyholders to connect with claims handlers through a video call, which is arranged via text message. The video call allows for motor insurance claims to be processed far quicker than if a claims handler was required to visit the location, allowing policyholders to understand what is happening with their claim in a much shorter timeframe.

Despite these providers using different methods to streamline the claims process – and all three being focused on the motor insurance market – these approaches can set a precedent for other lines of business. Learnings from motor can be leveraged not only to improve customer perceptions of the insurance industry, but also to help providers stop fraud and reduce costs.

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