The latest insights from RDT on claims are timely, because automated data processing offers so much potential for streamlining claims, especially lower value ones. That could be the key to reducing car and home premiums to more affordable levels across the UK market, rather than well meaning but ultimately clumsy attempts to cap or regulate premiums by politicians – most of whom have zero experience of ever working in a company which had to make a profit.
Here’s the word;
The recent RDT Tech Poll has revealed a strong consensus among insurance professionals for greater transparency and automation in claims processes. The poll highlights a significant call for change within the industry, driven by rising claims costs and inefficiencies in current systems.
When asked how transparent claims processes are, nearly all (94%) respondents agreed that they are not as transparent as they should be. Furthermore, the same respondents agreed that further automating the claims process would drive further efficiency and be advantageous for insurers, brokers, and policyholders.
Insurers also acknowledge the need to provide more granular details. A significant 91% of respondents believe that claims processes should offer brokers and policyholders more or better access to detailed updates on the status of their claims.
However, the barriers to greater transparency are varied. Feedback from respondents identified key themes preventing insurers from being more transparent. Respondents attributed the main obstacle to being the “inefficiency of legacy systems and processes”, while others cited a “lack of clarity and confidence in processes, leading to reluctance to share the real complexity”.
Other respondents went further, for example, expressing that the “high costs associated with introducing transparency” is significant, while another expressed concerns that “further transparency could prompt questions that policyholders may struggle to understand or prefer not to hear”.
Joe O’Connor, Deputy CEO of RDT, stated:
“Transparency and automation are essential for modernising claims processing in insurance. The findings from our poll indicate a clear demand for more detailed and accessible claims information. It’s encouraging that the majority of the market already understands the critical need for modernising claims, but it’s clear that hurdles remain.
“The challenges to achieving increased transparency and efficiency are undeniable but there are cost-effective solutions available to the market that too many ignore, potentially to the detriment of their policyholders and themselves.”
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