Claims digitization means many things to different people, whether enhancing the client service levels or driving operational best practices. However, Dominic Christian, Global Chairman of Aon’s Reinsurance Solutions pointed out earlier this month at the International Association of Claim Professionals (IACP) 2022 European Conference, “annual losses from less modelled secondary perils have been on a clear upward trend and this will inevitably lead to more complex claims so transformation supported by technology will be key.” A point that drives home an urgent need to work to address the rising costs of insurance.

Digitization in claims is one of the first ways we can do this to achieve faster collection of claims monies, reduce reconciliation, improve reserve reporting and create a more efficient value chain.

This topic was explored earlier this month at the International Association of Claim Professionals (IACP) 2022 European Conference where I was honoured to moderate the Accelerating Digital Together panel session with industry experts Enrico Alessandri, Clarissa Montecillo, Terry Calthorpe and Kevin Crossley.

Investing now for long term rewards

Investment, resource and budget is essential to building on the progress that has been made in the last ten years, particularly in accelerating the pace of the digital evolution. We are at the stage now where all parties need to be involved in the discussion. From CEO, COO and CFO, to those responsible for change management and people leading business teams adopting digitized processes. It is essential we continue to reinforce the true value of digitization based on the improved levels of service that can be generated to clients and reinsurer partners.

Across the panel, we acknowledged there are additional challenges to reach these optimal benefits of digitalisation the practical difficulty in collaborating across organisations, the complexity of the books which can be digitally captured as well as the necessary skills amongst colleagues and manage changing tasks and responsibilities within revised organisational structures.

Taking Our People With Us Every Step of The Way

From a people perspective, digitization, and any form of automation does tend to generate fears around job security. But the goal is not to eliminate the human touch, it is instead to create more space and time for our people to focus on the value-add aspects of claims. Digitization frees capacity for quicker query resolution, greater visibility as claims progress through their life cycles and ultimately claims monies move with less friction or stickiness.

Application Across Markets

When considering the global re/insurance marketplace, there are various states of readiness. London’s ‘bureau’ market is characterised by its subscription/agreement party nature and is perhaps more complicated than standard Ruschlikon/ACORD engagements. However, whilst London has also seen an evolution in its digital journey around central settlement, A&S, eAccounts, CSRP and now the Future at Lloyd’s and the Joint Solution Plan, there is far more to consider. Of course, adopting a common ACORD standard will help embed solutions using Ruschlikon/ACORD principles.

Outside of London, our experience shows not all markets have either the appetite or sophistication to embrace digitized solutions. We do, however, continue to strongly advocate for the benefits of digitization.

Continued Collaboration

As highlighted in my previous blog, the key to the continued success of digitization will be the high level of collaboration needed to help us advance but most importantly, all stakeholders need to get on board and help shape outcomes. We cannot look back in five years and say that the opportunity to mould the future was not there. There are several representative decision-making bodies that are aligned and seeking to drive standards forward. Stakeholders with the right skills and knowledge are urged to support these initiatives and get involved.

As our commercial partners' needs evolve, we will keep up by ensuring business processes also advance to meet their developing demands. Those brokers and markets adopting Ruschlikon/ACORD principles remain current and responsive through implementation of ACORD standard message upgrades, providing ongoing support via the eMessaging medium.

To close, the success of our company relies on the success of our industry, and we need to come together to deliver the best results to our clients and reinsurer partners. We have found a clear path to achieve our long-term claims goals through digitization of our capabilities. We must now work together to drive better service standards for clients across our industry.

Abour 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.