The London Market urgently needs to improve the efficiency of its claims processes to meet rising customer expectations, according to Lee Elliston, Claims Director at the Lloyd’s Market Association.
Elliston argued that new claims models in the London Market need to focus on better leveraging modern technology to the benefit of customers, brokers and the supply chain.
Such transformation is necessary to meet customer expectations of a quick response, continuous communication and a swift final outcome in their interactions with insurers.
Customer expectations have risen across the many industries in response to the ease of doing business through digitally disruptive companies such as Amazon, and Elliston claims that re/insurers risk losing business if they do not act quickly to meet demand.
“The future of claims is about customer service, technology, process and reducing cost,” said Elliston.
“It’s time for the market to get behind a once-in-a-generation opportunity to transform the claims model, building on the strength of the Lloyd’s and London market brand, putting the claims professionals that are so critical to it at the heart of delivering the transformation and adapting to a new model.”
While Elliston acknowledged that the London Market has made some progress in improving the notification of claims, reducing reliance on legacy technology and accelerating decision making, he maintained that its updates to claims model have been too small and incremental.
“Some technology and operating methods have been enhanced, but what we need now is transformation,” he said. “It’s time to completely re-engineer how we, manage and respond to, and settle claims.”
“If momentum is lost, any benefits will only marginally enhance the way carriers operate rather than being truly transformational.”
However, a successful reimagining of the claims model will require a collaborative strategy from tech developers, claims professionals, customers, brokers and experts, Elliston warned.
“We have to do it together with clear business outcomes agreed,” he explained, adding: “We can truly benefit from the thinking and focus that is being given to innovative technology, a customer service driven approach and culture, data & analytics and building the structures and skills of our claims experts in the London Market.”