The transformation of our industry is being enabled by technology. Not only driving new operational standards but fundamentally changing how we analyse market conditions, pay claims, develop new products and ultimately drive better client outcomes.
This month I was delighted to moderate the Accelerating Digital Together panel session at the International Association of Claim Professionals (IACP) 2022 European Conference with panellists Enrico Alessandri, Clarissa Montecillo, Terry Calthorpe and Kevin Crossley. Amongst the beautiful surroundings of the Fairmont St Andrews, Scotland, we discussed how we can work collectively to leverage digitization and deliver better outcomes.
Before settling into our panel discussion, Dominic Christian, Global Chairman of Aon’s Reinsurance Solutions opened the conference with a rallying keynote highlighting the great opportunity and responsibility we have as an industry to move innovation forward and improve the services we deliver to our clients.
What Are We Trying to Achieve? Five Principles for Digitized Claims
The re/insurance placement process has seen a handful of digital developments over the years. Ultimately, the real value comes from implementing a true end-to-end process across placement, premium, claims and accounting – from client to market and reverse - either directly or through brokers and intermediaries. Historically, the main barrier has been the limited sophistication and adoption of technology solutions. However, today we have confidence an overarching solution is within the industry’s grasp.
The evolution of the ACORD standard message (and Ruschlikon Implementation Group’s efforts) is allowing this to happen and is following five principles summarising what digitized claims should look like:
- Transparent – Where is my claim? Who is currently looking at it? What is outstanding?
- Quick – Decisions and outcomes are reached as soon as possible
- Efficient – Judicious use of expensive resources
- Consistent – Similar processes are fulfilled in similar timelines and resources
- Resilient – Ensure business as usual despite any unforeseen circumstances
Better Together: How We Make Digitized Claims A Reality
Multiple parties interact at several points in the re/insurance claims process: insureds, claimants, carriers, brokers and loss adjusters. Amongst the panel, we agreed whilst it’s tempting to go it alone, there is power in acknowledging, as an industry, we are all striving for the same end result.
The process will undoubtedly be more successful if we work together collaboratively as part of a community effort. Digitization brings an improvement in overall service standards, with greater transparency, increased efficiency and faster cashflow and there is an industry wide buy-in to develop one global approach that has been overseen by the ACORD Global Reinsurance and Large Commercial Standard. This delivers a common language and compatible processes across the value chain of risk placing, claims handling, technical accounting, and settlement.
The benefits are many. Process automation and integration can result in up to 70% of no-touch processed claims delivering reduced turnaround time, down from previous averages of 14 days to 1 day which also improves cash flow. The end-to-end encryption leads to improved data integrity and security, which also can impact the number of queried claims and cost reductions of 40% are not uncommon due to this increased efficiency.
About the Author
Leonora Siccardi is Global Chief Operating Officer at Aon’s Reinsurance Solutions and EMEA (Europe Middle East Africa) Chief Operating Officer at Aon across Solution Lines.