Managing Motor Insurance Claims in the Digital Era

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1 Insurance Insights Managing Motor Insurance Claims in the Digital Era Keeping it simple and transparent

2 Managing Motor Insurance Claims in the Digital Era The world of motor insurance claims is fast becoming a digitally-driven ecosystem. Amidst the rising number of vehicles on our roads, motor insurance has become a standard commodity and insurers are now tasked with the intricate job of adopting technologies, to streamline their own operations and deliver a faster, more competitive service. Today, those who find new ways to put the consumer at the heart of every claim, and make the journey from initiation to final settlement as simple and transparent as possible, are the best positioned to succeed within the digital landscape. This has inevitably increased the need for innovation amongst modern insurers, who now face mounting pressures to digitise the entire claims process, to reduce the complexity of claims whilst maintaining efficiency and improving the customer experience. Audatex s recent survey of over 3,000 UK adult motor insurance policyholders found that over 41% have lost complete trust in their insurer due to a lack of clarity during a claim; a disastrous statistic for policyholder attraction and retention. 41% of all respondents do not trust their motor insurer Nearly two thirds of respondents (62%) aged 55+ completely trust their insurer

3 Managing Motor Insurance Claims in the Digital Era Keeping complexity away from the customer is fundamental to providing a frictionless motor claims journey and McKinsey s recent report states that insurers must now move quickly to innovate and meet the demands for ease in a fast-paced digital world. However, due to the industry s slow adoption of technology, creating a quick and clear process has been a challenge for insurers one that has affected consumer experiences of motor claims to date. Our research found that a quarter (25%) felt as if they are not in control of the claims process and it is now up to insurers to help them navigate their journey effectively. A quarter (25%) of respondents feel as if they are not in control of the claims process As the motor claims ecosystem advances, insurance providers are undoubtedly under huge pressure to shake up their own business models and deliver a seamless digital claims journey. Yet, with multiple parties now involved in the claim process, each with differing processes and objectives when handling a claim, the risk of consumers experience a long and fragmented journey 30% of respondents think the claims process takes too long remains high. With a third (30%) of respondents thinking the claims process takes too long, stakeholders must now collaborate to ensure customers are provided with a clear procedure, which prioritises their liquid digital needs at all stages of their journey. Adopting this omnichannel approach, which offers greater choice and visibility throughout is already showing signs of improving consumer trust in insurers. Our survey findings revealed that 71% of respondents with online-only policies are most likely to trust their insurer a promising signal that alternative digital methods, which fit perfectly into an on-the-go lifestyle can help to drive customer satisfaction and ultimately increase brand loyalty. 71% of respondents with onlineonly policies are most likely to trust their insurer

4 Managing Motor Insurance Claims in the Digital Era One in ten (11%) policyholders do not trust their insurer due to previous poor claims experiences Keeping consumers fully up to date from the initiation of a claim right through to its resolution can also help to establish a high level of trust and confidence from policyholders. With 61% of respondents desiring greater visibility throughout the process, it is now the responsibility of insurers to implement new tools which can offer high levels of communication when managing a motor claim, not only with their customers, but also with fellow stakeholders. Telematics is one such development that has significantly improved transparency in the claims process, with 43% of policyholders with a black box policy believing it makes claims quicker and easier to manage. This also reflects the growing preference amongst policyholders for monitoring policies and claims through accurate digital means, and the desire from consumers for flexibility through a range of technologies. As the motor claims landscape continues to evolve, modern insurance companies must embrace the ongoing shift towards more digitised processes to meet the unprecedented demands for speed and simplicity from consumers. By developing these solutions, which remove difficulties and offer more clarity throughout the motor claims journey, insurers can guarantee that they are well poised to adapt to inevitable new insurance business models and solidify their position in an increasingly complex ecosystem. 10% of respondents cite bad customer service as the reason for not trusting their insurer

5 In June 2018, together with Censuswide, Audatex surveyed 3001 UK adults with motor insurance in order to learn more about how they select a motor insurance policy and their experiences of making a claim. For more information please contact marketing@audatex.co.uk 2018 Audatex (UK) Limited, A Solera Company. 05/10/2018 v1