Personalisation is possible in a digital claims journey

Kajal Vakas, senior vertical market manager of claims at LexisNexis Risk Solutions investigates the impact of the cost-of-living crisis on motor insurance claims and why data enrichment at FNOL can help reduce costs and improve the customer experience.

As motor claims inflation rises, claims costs are under increasing scrutiny.  At the same time the market is highly conscious of the need to build trust and to prove the value of insurance by truly delivering on its promise at claim.  To that end, a frictionless claims journey, with the choice to self-serve through a digital first notification of loss (FNOL) process or to have a metaphorical hand to hold is what claims teams work hard to deliver.  In fact, some insurance providers during the cost-of-living crisis are looking to understand when a customer may have cut back on cover, to save costs so that this can be taken into account when a claim arises. The risk with a digital claims journey is that while it allows efficiencies for both the claims team and the customer, it can be impersonal, doing little to build trust.

The answer lies in personalisation through data.

Personalisation requires insurance providers to fully leverage the customer data they already hold and use that alongside market wide policy and claims data in tandem with independent, verified data sources to help make sound decisions for the customer at claim.  This can help lessen the demand on the customer to provide information the insurance provider could or should already know. 

The FCA’s Consumer Duty requires insurance providers to take steps to prevent poor outcomes for their customers.  Consumers need to understand what they're buying and that the insurance provider will deliver when they need them to, i.e. at claim. It makes sense then that the more a customer is understood, through data, the better insurance providers can respond to their needs.  This is true for all parts of the customer journey.

Looking specifically at claim, using data to offer a personalised journey not only makes the customer feel valued from the FNOL, it tells the claims team enough about the claim, the policy cover and the preferences of the customer to route it in the correct way for a speedy repair, replacement or settlement. In turn, insurance providers gain in efficiency savings and improved customer satisfaction levels.

Claims professionals are acutely aware of the fact that most people enter a claims process wary and mistrustful.  Yet a personalised journey can be very effective in removing friction and building trust, without putting undue strain on resources.

By using information an insurance provider already knows about the policy and the policy holder, questions can be tailored and detail completed in the claims process, reducing key strokes for both the customer and claims handler.

This could start with attaining a single customer view based on all previous interaction with the individual using identity management solutions such as LexID for insurance. This enables insurance providers to link customers records with a high level of confidence and leverage the full power of their own data.  With one ‘golden record’ for the customer, personalisation opportunities can be realised.

Then, information shared across the market related to the individual’s prior insurance claims history as well as the claims history of the vehicle or property brings a further layer of understanding, using solutions such as LexisNexis® Precision Claims.  This means insurance providers can know immediately if the car has been in another accident recently, whether this is a serial claimant or an individual who has never claimed before.  The power this can offer in reducing fraud is obvious. 

Bring in email address intelligence on whether the individual has been linked with fraud and claims professionals can swiftly pass through genuine claims while referring on those that need further investigation to the fraud team.

Moving on to vehicle centric data in claims.  This can help insurance providers know up front, exactly how the vehicle is equipped from an Advanced Driver Assistance Systems (ADAS) perspective as well as the market value, the MOT history, the mileage for example, using independently validated data. 

Ultimately, data can help make the claims experience more personalised, allowing more effective communication, speeding up the journey, delivering efficiencies and also protecting honest policyholders from the cost of fraud which tends to rise in times of economic stress. Essentially, it allows claims professionals to know more to do more for the customer and that can pay dividends at renewal.