27 November 2018
Throughout the 21st century, it would be hard to identify a market that hasn’t benefited from modern technological improvements.
Innovations and advancing technologies are constantly being introduced into new building developments and retrofitted into older buildings.
One day, these innovative improvements may reduce claim frequency and severity, as they serve to prevent, identify and mitigate damage.
Equally these advancements may assist the claims assessment and repair process for Insurers, much like the technologies already assisting in motor claims.
The insurance client of today has also evolved.
They need efficiency and want easy access to information, updates and outcomes via the multitude of personal devices and communication mediums available to them.
Concurrently, today’s client wants to enjoy a personal experience and ongoing support.
It is no secret that global insurance markets (Australia included) have been affected by an increase in both frequency and severity of natural disasters.
Hurricanes Harvey, Irma and Maria combined with devastating western wildfires and other natural catastrophes made 2017 the most expensive year on record for disasters. Here at home, The Insurance Council of Australia (ICA) revealed that insured losses from Tropical Cyclone Debbie have nearly reached $1 billion.
Whilst ‘run of the mill’ claims may decrease in the future with the introduction of clever innovations, our changing climate suggests that the volume of more severe claims is likely to increase.
To meet customer expectations, Insurers must have the capacity and flexibility to scale their operations in the face of disasters, whilst at the same time delivering consistent, quality service on their ‘run of the mill’ claims.
In light of the above claims trends, 2018 has seen the Insurance Industry experience a hardening market.
An attribute of a hardening market is additional focus being applied to compliance and cost-saving, on claims which may have previously seemed simple.
Clients can be required to work through more steps at the assessment, quotation and repair stage with an Insurer, before reaching reinstatement or settlement on a valid claim.
Guidance and support during these difficult times becomes paramount for clients, as they navigate their way through a process vastly different to their last experience, or daunting for their first experience.
The successful Insurers and Brokers of the future will be investing in customer-focused initiatives that reduce claim duration.
They must leverage their data and experience to implement systems that free up their skilled and specialist teams. These teams can then focus on finding solutions to complex issues and scale up effectively in a disaster whilst providing the personal experience clients seek.
This article has been written by Jenny Mills, Claims Manager – BAC Insurance Brokers. Jenny is an experienced property claims expert with a career history spanning roles within insurance companies, consulting firms and broking organisations.