Why now is the time to invest in a new claims management system
Customisable claims management technology like the Lloyd’s Market Association (LMA)-sponsored Write Back platform is now integral to The Future At Lloyd’s (TFAL).
In Lloyd’s targeted reform there is a major opportunity for technologies like Write Back to be leveraged to re-imagine insurance carriers’ traditional roles and how those interact with the value chain to adopt a claims ecosystem mind-set.
At the same time, Covid-19 has changed the way we live and work. Out-dated legacy claims systems are no longer fit for purpose in this ‘new normal’ environment. A Write Back enabled claims platform can allow multiple users and applications to connect and interact, whilst orchestrating data and decisions, to create a value exchange.
A customisable electronic claims technology can plug multiple application programming interfaces (APIs) into carriers and third parties, processing millions of rich claims messages through today’s InsurTech service providers.
This offers an insight into a future for the subscription-led market model that operates today, and the visions presented by the Lloyd’s Blueprint. Specifically, the blueprint calls for a claims solution to deliver an interface for policyholders, third parties, and market participants, whilst improving communication and transparency of a claim.
It also promotes a new requirement for artificial intelligence (AI)-powered triaging and segmentation, routing claims to the right place throughout the claim lifecycle with full straight-through processing for certain non-complex claims.
The vision is of a “one-stop shop” claims service that handles non-complex claims on behalf of the market, using leading technology, analytics and centrally procured services.
Third party technologies and data should be playing a part in carriers’ integrated digital claims strategy. The power of an integrated all-in-one CMS will give each carrier the opportunity to provide its unique and nimble value-add to handling claims.
Many claims teams are therefore turning to technology solutions that can plug in multiple external APIs, exchange rich claims messages, gain insights, remove duplication, automate processes and enhance performance. A modern claims management system can help with cradle-to-grave claims – all in one place, supporting customer experience and tech and data led claims decisions.
New technology can integrate with underwriting systems, document management services, sanctions and third-party systems – a complete, customisable, lifecycle claims solution, driving efficiencies and speed of claims. It can plug in natural catastrophe models, aviation flight data, shipping fleet movements, war and terror heat maps, claims reserving analysis, cyber risk perils and a whole host of other external APIs with cross-functional utility that can help to integrate an insurer’s internal and external data.
For example, a major stepping-stone towards an algorithmic vision for the Future at Lloyd’s was realised earlier this year when a large MA successfully completed several small claims via an automated settlement (SCAS) service via the DOCOsoft CMS. The carrier partnered with DOCOsoft to adopt this automated concept via their Write Back-enabled CMS.
SCAS will demonstrate the advantages of automating those small claims settlement transactions – in effect, the practical use case of a form of robotics – by removing claim handler touch points and reducing transactional agreement timeframes.
Other opportunities to promote a more collaborative environment are being identified all the time, for example, a new solution that allows a carrier to manage their relationship, the associated performance, and customer outcomes with key claims experts, whilst managing and assessing claims expense and leakage.
The answer was to build a market platform called Gemini, initially for open market business. Gemini will be the single platform that removes the complexity, delay and cost to experts submitting their fee to Lloyd’s carriers.
It will deliver an efficient, straight-through fee agreement and payment process, whilst capturing structured data on expert spend and claims trends that will allow Lloyd’s carriers to have true visibility of expert spend, usage and performance.
Lee Elliston, claims director at the LMA says: “A 30 year old problem of managing our experts and the associated expense is being solved in a digital way with data, an API, and instant payment technology.
“The delivery of Gemini will allow carriers to manage and reduce claims costs and improve the performance of experts, but also build a wealth of data to inform and support future claim decisions of a certain claim type in a particular territory – putting the analysis and power back into the hands of the Lloyd’s claims handler via their Write Back enabled and integrated CMS.”
More than 650 experts have been pre-registered for access to Gemini with the support of Lloyd’s carriers. The total claims expert spend in the Lloyd’s market is around £500mn a year, according to previous estimates from the LMA.
Big-ticket insurance business demands big-ticket expertise, which deserves to be delivered on a claims ecosystem platform that is secure, efficient and future proofed in 2020.