TECHNOLOGY
“Good customer service leads to trust , which leads to customer retention ”
MARTYN MATHEWS , LEXISNEXIS RISK SOLUTIONS
many routine admin tasks from the policy and claims journeys ,” says Colonnese .
“ Automation allows staff to focus on complex value-added activities where they can have the biggest impact , for example in handling higher value or more complicated claims . Improving the customer experience of claims is also a hugely important factor in transformation ; a speedier and easier experience for customers drives longer-term customer loyalty that ultimately contributes to business success .”
Insurtech automation challenges Because automation brings with it so many benefits , most experts agree it makes sense to implement the changes – even if they are radical and initially , expensive . But it ’ s a difficult band aid to rip off , says Morgenthaler , who points out that such radical shifts are alien to the insurance environment culture .
“ Insurers face a major challenge around managing the organisational and cultural change that is required for automation to fulfil its potential . For an environment that has valued stability as part of a risk-averse culture , this presents a greater challenge than in other industries , where change management has become part of the organisational " muscle memory .”
The task can also be a logistical nightmare for those companies heavily reliant on legacy systems to manage data and information .
Automation case study :
Martyn Mathews , Senior Director , Personal Lines , Insurance , UK and Ireland , LexisNexis Risk Solutions , describes why automation has become the essential model of choice for insurance companies – especially in recent months .
“ We often talk about this frictionless process of buying insurance , which leads to profitability because if ‘ friction ’ exists , it ’ s bad for customer retention . For example , in 2020 , we saw a particular broker challenged with a manual process where a customer would have to validate their no claims . But during COVID , all the new claims were sent to a physical office . This caused a lot of friction because after COVID hit , people had to leave the offices , they couldn ' t work in those premises and the claims were delayed .
LexisNexis went to that organisation to digitise and automate their process of validating someone ' s no claims . The customer experience was then greatly improved which ultimately led to profitability for the company as they didn ' t lose business .”
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