Excellence in global claims handling

The Benefits of a global claims programme: Globalisation has increased the complexity of insurance claims. Paul Fox of XL Group considers some of the implications

Delivering excellence in claims management is an important differentiator in the insurance industry. The better an insurer can make its claims function – and the more effective the technology that supports it – the more likely it is that the customer’s experience will be enhanced.

But by the same token, customers can be unforgiving when it comes to mistakes. Get something wrong and it’s quite possible you won’t get a second chance to redeem yourself.

One obvious consequence of globalisation is that companies increasingly operate in multiple markets. Also the business risks they are exposed to are growing in complexity. The claims management function needs to respond to these twin challenges.

Technology has to play a role here. Companies want a genuinely global claims application – as opposed to multiple legacy systems bolted on to each other. One that gives them access to real-time data online and via mobile devices, faster response times and consistent claims data wherever they are in the world.

But a focus on pure technology is not a substitute for effectiveness. The application of the latest technology cannot compensate for a poor claims experience. So a hightech approach must be aligned to a high-touch one, with human interaction between customers and knowledgeable, business-minded claims professionals underpinning the whole claims experience.

Another important factor behind the development of the claims function is the cost saving that can be made from effective and efficient management of claims. Claims losses and handling expenses form a significant part of an insurance company’s cost base. With financial conditions in the insurance market still tough, better management of claims payments and reducing the overall cost of processing these claims, makes good business sense.

Buying, selling transacting have all become things we can do from our PCs and smart phones. Our demand for instant data has never been greater and companies, across all industries, are investing significant sums in IT projects to streamline their operations and improve efficiencies and ultimately the customer’s experience.

It is essential that the insurance industry does the same. Insurers can’t ignore the fact that the global claims market is changing. The answer is to provide client-centric solutions that cut response times and give real-time data that is consistent no matter where in the world it is being accessed.

The good news is these services are already available. Today risk managers can access consistent claims data in real-time wherever they are in the world, meaning that they have an overview of the ongoing claims as the claims are being managed and processed from first notification to payment, this can all be tracked through a PC or a smart phone.

So as technology and working practices advance it is vital that the insurance industry does not simply respond, but instead leads the way. Insurers that fail to respond to the changing ways in which risk managers want to work will certainly get left behind.

Paul Fox is head of claims operations UK & Ireland, International Property and Casualty, XL Group

Paul Fox