Complex claims services can set carriers apart: Markel

Insurers that find ways of bridging the gap – in expertise and client experience – between underwriting and claims, can gain a competitive advantage, especially on complex claims in an increasingly fast-changing risk landscape.

KEY POINTS:
Claims a competitive advantage
Silos in carriers unhelpful
Clients want one contact

So says Dan Martin, managing director, distribution strategies and business development, Markel, who told AIRMIC Today that claims departments should also be fully aware of all education and mitigation tools clients use as a result of their exposure experience to the company.

“It’s claims experience and outcomes, not capacity, that represents the real differentiator for large, complex clients,” he said. “We think claims is where the real outcome journey begins in terms of their relationship with carrier.

“Carriers can do more to smooth that path. They should be preparing for a claims event long before it happens through scenario planning and many other techniques. Clients increasingly want insurers to be much more than just a cheque writer.”

“Claims experience and outcomes, not capacity, represents the real differentiator for large complex clients.”

Breaking down the silos

He explains silos often still exist within insurers. On the distribution and underwriting side, it is somewhat natural for departments to work apart, such are the differences between different lines of business. But on the claims side, all the client wants is one point of contact, regardless of how many policies a complex claim might have triggered.

“Risk managers don’t really care about an insurer operating in silos. In terms of how a claim is handled. They want one relationship with a carrier that can break down internal silos and present one external face to the market.”

He admits brokers, if asked to distinguish between carriers, rarely have claims services high on their list of responses, tending to focus on the underwriting process. But that is not necessarily a reflection of the needs of the end client. On this basis, an insurer’s behaviour when a complex claim happens can offer a competitive advantage and engender loyalty.

“When a claim is triggered, it is an awful process for a client. So what is the insurer’s attitude? How do they deal with the immediate aftermath? The value of that insurer is very tangible. It’s not to say that price isn’t important, but how they perform on a contentious claim makes a big difference. Clients want professional help, advocacy and a promise being delivered on, with robust intention from the carrier.”

He said Markel has been on a journey to implement these principles. “We’re much more effective in dealing with large and complex clients around multi-classes or challenging claims scenarios. We see this as an opportunity to build stronger partnerships.

“You can build all sorts of wonderful products, but ultimately, how do you manage your claims conversation?”

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