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May 21, 2020updated 31 Jan 2022 10:13am

Direct to Customer Insurance: Claims Management

By GlobalData Thematic Research

D2C models come hand in hand with digitisation. Agile insurance businesses focusing on the direct channel will be able to collect more customer data, enabling more informed decisions during the claims process. In addition, D2C insurers handling claims directly will invest in automation, benefitting customers via quicker and more accurate settlements.

Listed below are the top claims management trends impacting D2C in insurance, as identified by GlobalData.

Loss adjusters

As insurers enhance their D2C strategies, they will be able to collect more data directly from customers. The availability of detailed customer data allows for better insights, enabling loss adjusters to make more informed decisions. This will be most prominent with insurance policies involving advanced technology, such as devices and detectors used in an automated home, wearables to monitor health, or telematics-based motor insurance. Increased data points are useful when resolving complex claims.

Claims handlers

As digitisation in insurance continues, insurers will introduce more digital touchpoints throughout the customer journey, including in the claims management process. Increasingly, customers are expecting to interact with insurance firms online when making claims. Zurich has introduced the Zara chatbot to help customers report motor claims.

As the volume of customer data held by insurers increases, the adoption of claims management platforms can improve efficiencies and assist claims handlers in providing a consistent experience. Data insights powered by technology will enable claims handlers to better establish the magnitude of premiums and detect fraudulent claims.

Third-party administrators

As insurance becomes increasingly digitised, automation and AI could allow incumbent insurers to handle all claims in-house without the need for third-party administrators. Lemonade, for instance, runs algorithms powered by AI to validate claims instantly. Claims that are approved are paid instantly, otherwise a dedicated claims team looks into them.

However, legacy systems may prompt some incumbent insurers to seek partnerships to allow them to fast track their digital capabilities. For instance, software provider 360Globalnet has developed a fully digital claims management platform targeted at insurers looking to implement customer self-service capabilities during the claims management process and automate claims settlement.

This is an edited extract from the Direct to Customer in Insurance – Thematic Research report produced by GlobalData Thematic Research.