How many times have you heard the word innovation mentioned in a meeting recently? It certainly is the buzzword of the moment in the UK insurance world: the news is awash with articles, think pieces and blogs lamenting the lack of innovation in the industry, our clients working in London Market and UK regional insurance are placing it at the forefront of their agendas. Indeed we are currently working with Lloyds on the 2016 Lloyd’s Market Innovation Awards with submissions coming in thick and fast.
Unsurprisingly innovation isn’t limited to the UK insurance market, it is gaining momentum in markets across the world, particularly in the US where Claims brokers want more innovation from insurers, and that innovation needs to focus more on the end customer.
“They need to focus on the customer in all ways. Pricing, training and with delivery of service. They need to be more team oriented with the brokers.”
US Claims broker
According to The Gracechurch US Claims Report 2015, more than six in ten US claims brokers say insurers aren’t innovative enough. This should concern insurers given that nearly 100% of US brokers say that innovation is driving factor in a broker’s choice of insurance partner.
So why innovation?
Well, in the US, Technical Ability is the strongest driver of Claims Satisfaction. It’s also an area where insurers generally excel, as they do in London. Claims teams are proud of their technical expertise, and so they should be; but that is intrinsically internally focus and that focus needs to move outwards i.e., on the customer. That is innovation.
So what can claims teams do to be more innovative?
As the global insurance market consolidates and divides into clusters of large and medium sized players what will make each of them stand out? Will it be the lines they cover or how much business they write? Or will it be the way in which they do business with a focus on protecting their business so that is ready to adapt to an unpredictable future.