and pain “management” claims. For a
small company like ours, improving technology within fiscal reasonableness.
Hilyard: Balancing the need to create the
lowest possible cost model while executing
the best possible customer experience and
loss-leakage mitigation strategies. This has
many tentacles including developing great
leaders, creating world-class employee engagement, and investing in cutting-edge
technology, among other things.
The second involves executing a
thoughtful strategy to respond to the
growing complexity around risk and exposure, products, legal environments,
regulatory compliance, and many other
And third, building a significant data
and analytics capability to ensure the
clearest line of sight into customer needs,
business trends, and performance metrics.
Murphy: Without a doubt, talent acquisition is one of the biggest challenges facing insurance providers and claims teams
today, particularly when it comes to cyber, one of the fastest growing lines of
Another challenge facing claims executives, I believe, is keeping pace with
technology and consumer expectations
for immediate access to information. Insurance executives should be constantly
thinking of ways to provide more timely
and transparent information to their customers, and deliver it in a way that is familiar and easy for them to understand. We
must invest in technology to help make the
process of filing and tracking the progress
of a claim easier for the consumer, while
retaining the feeling of personal service
and subject matter knowledge that only
comes with experience.
The changing claims process
There is no shortage of issues to cause
claims executives concern, but many executives are focused on the best ways in
which to serve their policyholders while
meeting or exceeding their expectations.
MacPhee: What concerns us the most is
matching the expectations of all stakehold-
ers. Everyone needs to be able to do their
job in a timely way and deliver results, and
this is getting increasingly difficult. With
the number of catastrophic events, the in-
creasing prevalence of massive claims, and
the need to deliver quickly, the pressure is
on. All of these factors, combined with a
shortage of resources, present unique chal-
lenges to the claims process for the insurer,
the adjuster and the expert.
Howard: Addressing changing consumer
needs is the most challenging. In the age
of quick service, companies must be easy
to do business with, or suffer the consequence of creating opportunities for
a competitor to win that consumer. The
importance of customer interactions
with claims cannot be overstated, as customers’ claims experiences are likely an
important factor when it comes time to
deciding whether to remain a customer.
The significance of a claims experience
that pleases the customer forces insurers
to think differently about claims processes and tools. The key here is flexibility, agility and adaptability. Customer
needs are unique and evolving, and the
solutions should be, too; it cannot be a
“one size fits all” strategy.
Fisher: In the United States, the claims
process suffers from a lack of trust and
good faith on both sides. This often leads
to an adversarial relationship between the
policyholder and the insurer, and inhibits
both parties from finding a business solution as well as a common understanding
based on the terms of the policy and intended coverage.
Hipp: I think there are two key risks, one
old and one new. Fraud is an ever-present
concern and technology is making fraud
that much easier to perpetrate. Insurers
must use technology in a very capable
way to combat new forms of fraudulent
claims. Automation and disruptive
technologies are a second concern. The
inability of insurers to maintain the pace
of digitalization will face increasing costs
and reputational risks that will adversely
Skapof: Over the last few years, the claims
process has become increasingly complex.
Couple it with a reduced workforce and
IT and technology gaps, and even those
tasks that we once thought of as routine
like retrieving full and accurate informa-
tion or ensuring that a claims process is
adhered to have become more difficult.
With that said, despite those concerns,
we are constantly working to overcome