Last week Revival attended the I Love Claims conference in Coventry. It was an informative day that offered some interesting insight into the insurance industry in terms of innovation. This was particularly noted when ‘disruptive brands’ were discussed.
Over the past few years, there has been whisperings of disrupting the way in which the insurance industry works. It seems that a new approach is long overdue as the current model has stayed static for hundreds of years. Whilst other industries including banking, retail and entertainment have evolved with technology allowing for greater customer services, satisfaction and improved efficiencies, insurance companies have been less embracing.
As a result of the digital adoption within other industries, this has meant that we, both as consumers and employees, expect, and often demand, a similar level of technological progression across the board. However, the insurance industry hasn’t quite caught up yet. Since the digital age, the only real big change it has seen is the emergence of the aggregator sites which empowered customers to get the best deal without having to ring round every single company. However, that took place over ten year’s ago and a fresh approach is now needed.
The discussion at the I Love Claims conference that some major retail brands, such as Amazon, are looking to break into the market should be embraced. It’s suggested that this type of organisation would bring a fresh, modern approach to the market that will speed up processes. These large organisations have the infrastructure that would allow policyholders to make claims via mediums such as an app, saving time on the traditional call centre approach. This would address the frustrations that customers have in terms of how long it can take for a claim to be processed.
At Revival, we think this is an exciting proposition that will benefit both insurers and policyholders. Take the case of a burst pipe in the home as an example. The quicker we can be on site to start repairs the less chance there is of further damage or of more complex restoration. For us, the first 72 hours are vital in order to ensure that sites are back to normal as soon as possible. The idea that time savings can be made using a new model should be viewed favourably.
In addition, the quicker a repair is made, the less it will cost the insurer. Take our burst pipe as an example again, if the damage affects several living areas then the residents will be moved into alternative accommodation at the cost of the insurer. The quicker we can respond, the easier it is to limit further damage and to begin the restoration.
The feeling across the industry may be that of uncertainty and perhaps even fear of these challenger brands. However, in order for the insurance market to survive amongst these new challengers it will need reinvent itself in line with the digital age. We think this is a great opportunity for organisations to evaluate how they can move into the digital age to not only satisfy customers but also the bottom line. When a new approach means costs and time are saved it can only be a great thing. I look forward to an exciting time ahead for the sector.
You can follow Matthew on LinkedIn