Some interesting insights from Matteo Carbone of Bain & Company.
There are a couple of things worth highlighting - with the current business model of compensation (rather than loss prevention), efficient claims handling quite simply MUST be a priority if Insurance is to have any hope of enhancing it's public profile. A large proportion of claims are too complex for immediate settlement to be viable, but that doesn't mean digitalisation can't speed things up.
There have been a number of firms seeking to innovate the claim process, including a noteworthy startup boot camp graduate, and whilst some of this innovation is focused on speed, a lot seems to be working to better identify fraud. Obviously for Insurers eradication of fraud is important - however, it is not conducive to a mutually trusting relationship with customers for this to have such a prominent position in the 'things that need working on' list.
Surely the best place to start when looking to innovate in claims is not with asking questions internally, but rather to understand the frustrations of customers and work to alleviate their issues? It seems that most of the rest of InsurTech has this concept at its heart.
Claims are the largest cost on the insurance P&L, the effectiveness of this process is key to building a sustainable competitive advantage. As of today, many claim processes are old and outdated and the opportunities on offer are boundless