Insurance companies across the globe are facing an increased demand to enhance their customer-serving digital channels/platforms according to a new report. Global market research specialists Lumivo identified in its report Insurance claims and the role of digital channels that the Covid-19 pandemic has accelerated the need for more consumer-friendly and robust digital platforms.
The need for better digital channels has been exacerbated as a result of offices being forced to close and employees either working from home or furloughed as result of the pandemic. This has pushed more consumers to use digital platforms, highlighting both the positive and negative aspects of the existing technology. The detailed report explores a number of differentials in the digital platforms and highlights global best practices based on evidence from 30 major insurance companies in four global locations – the United Kingdom, the United States, Hong Kong and Australia.
The report draws on analysis from more than 4,200 existing insurance customers in five key personal line markets. In addition, it also includes the results from a survey of more than 2,200 consumers that have filed insurance claims (64 per cent motor claims, 34 per cent household claims) this year. This substantial information has revealed some key issues from consumers using digital platforms that need to be rapidly addressed by insurance companies. UK evidence was drawn from looking at the practices of seven major insurers – Admiral, Aviva, AXA, Direct Line, Hastings Direct, Liverpool Victoria and QBE and is covered comprehensively in the 85-page document, which shares key findings that will benefit the industry.
Amongst the 4,000 plus global insurance customers that use the ‘my account’ area on insurance company websites, almost half (48 per cent) indicated that the Covid-19 pandemic would lead to an increased use of digitals channels. The findings revealed that at present 64 per cent of users went online at least once a year, with the main reasons being to amend details, view policy documents and to renew policies.
The results also identified that a website was the preferred platform to make a claim (40 per cent), submit claim details (28 per cent) and track claims (49 per cent). Smartphone apps currently rank third, behind phone calls, but are expected to increase in usage and demand. By contrast, respondents to the survey revealed that claims by phone were more popular (42 per cent) with just 17 per cent submitted via a website. However, there is shift towards using digital methods to file claims in the future. Consumers stressed they want more efficient ways to file a claim, submit the relevant information required, track on-going claims, secure an instant decision and schedule repairs.
Data from both existing online users and the survey revealed that issues over tracking claims ranked top on their list of bugbears. The inability to find information, the need to call the insurance company or needing too many ‘clicks’ to find the information were top gripes.
Consumers are also looking for improvements in the system. The ability to upload photos is the most in-demand feature (24 per cent) along with not having to continually repeat information (24 per cent). The report identifies insurers who are leading the way, not just in their territory, but globally. Admiral’s website was amongst the top performers for submitting a new claim, while the My Aviva app is acknowledged as the best in use by users. The report also delves deeper into the impact positive digital experiences have with regards to brand loyalty and renewals as 19 per cent of customers who made a claim, posted a review online, with 52 per cent of the posts on Facebook. There is also a section that looks at consumer views on the impact of artificial intelligence and smart technology when it comes to claims. In the UK, 19 per cent of those questioned stated they had a smart sensor for detecting home water leaks, while 55 per cent said they would be interested in the future. Automating routine business operations can assist on reducing the time and cost. This is particularly relevant for claims, where prolonged assessment can increase the costs involved.
Report author Malcolm Otter, research director at Lumivo, said: “The current Covid-19 crisis has increased the urgency for needing to serve customers better through digital channels. The aim of this report is to help insurers to have a clear understanding of global best practices in relation to claims from the perspective of the consumer.”
One business benefitting from the report’s findings is Generali, which was ranked in the top 10 of global insurance companies based on its revenue in 2019. Gemma Galvez Moreno, head of global standard claims at Generali, said: “Learning from market best practices and customers’ feedback is extremely valuable to transform Generali’s claims journeys.
“Lumivo has provided insights from real customers highlighting their frustrations and priorities, with concrete solutions put in place by insurance companies in different markets.”
The full Lumivo report goes into considerably more detail and is designed to help claims transformation leaders to understand global best practices around claims FNOL and tracking. For more information, please contact: hello@lumivo.com or visit www.lumivo.com
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