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Digitizing Claims: Think Big, Execute Small

Recently, VPay partnered with Reuters and claims and digital innovation executives from Hiscox, Kemper, and Nationwide to discuss, Digitizing Claims: Thing Big, Execute Small.

Recently, VPay partnered with Reuters and claims and digital innovation executives from Hiscox, Kemper, and Nationwide to discuss, Digitizing Claims: Thing Big, Execute Small.

The resulting whitepaper explores the need for insurers to digitize their claims process to meet the needs of Millennials and Gen Z who are now coming of age. It looks at the challenges of transformation and provides strategies for identifying “quick wins” that have a positive impact on customers’ claim experiences. It includes insights from Grace Hanson, Chief Claims Officer, Hiscox; Kim Leggette, Chief Claims Officer, Kemper; Pete Frey, Director of Commercial Lines Telematics, Nationwide; and Jeffrey Brown, President, VPay.

While insurers have had digitization on their roadmaps for a while, Covid accelerated the need for quick solutions. The challenge now is to extract the best learnings, maintain digital momentum, and continue on toward an optimally-digitized claim process.

There are, however, three important steps insurers can take to see quick results without excessive effort:


Identify the Quick Wins

In general, the fronts on which insurance companies can most effectively impact the customer experience involve the payment of claims and communication with policyholders. Moving both of these experiences to digital both saves money and increases rates of customer retention.

“There have been some interesting studies from Salesforce on customer experience and the research suggests that the number one expectation is how fast you get paid. It’s the number one driver of satisfaction. Off the back of that, customers want to be communicated with efficiently, they want to know the outcome.”

– Grace Hanson, Claims Director at Hiscox

Find Opportunity in Existing Resources

Many companies have already put massive efforts into refining one area of their business, and the data or processes there can often be repurposed to benefit another.

Pete Frey, Director of Commercial Lines Telematics at Nationwide moved forensic level telematics data to the claims process to better identify how a collision occurred, the severity of the impact, and relevant non-collision data like the weather.

“When we talk about telematics, it’s typically in driving behavior and discounts, but over the last few years it has begun to be talked about in claims. When we have vehicles that are connected, the ability to take data to fill in gaps during a claims event is very valuable.”

– Pete Frey, Director of Commercial Lines Telematics at Nationwide

Outsource for Rapid Transformation

While many organizations have hesitations about outsourcing, the benefits of embracing the focused expertise of fintech partners are many—ease of staying on top of changes, simplicity of managing regulatory and compliance concerns, as well as the ability to receive important reporting on shared data.

“Financial transactions are changing quicker today than they have ever changed in their history. There’s a new form of payment technology introduced every month. By outsourcing, you don’t have to worry about keeping up with the pace of change. You can rely on your fintech partner to introduce payment technology when it makes sense for your business.”

–Jeffrey Brown, President at VPay

While no two companies are the same—each entity will need to discover the best ways to transform itself—embracing and understanding these three steps as a strategy outline can help companies in the insurance sector quickly effect change and move into the digital space.

Download the full whitepaper on Reuters’ site

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