The global pandemic has created a real imperative for modernising the claims process, argues Ashi Bagdadi, corporate vice president, insurance for WNS, ahead of a webinar on the issue.
COVID-19 makes it more important than ever to modernise claims processes, says Ashi Bagdadi, corporate vice president, insurance for WNS – a business process management (BPM) company which co-creates solutions with more than 50 global insurance companies, ahead of an Intelligent Insurer webinar on the topic.
The global pandemic has had a profound impact on the claims functions of insurance companies around the globe. On the one hand, the number of claims has increased significantly, with many relating to new or unusual situations. On the other hand, insurance companies, like many other businesses, are struggling to manage employees who are working remotely. They also face the challenge of personnel shortages due to illness and burn-out caused by working from home without adequate childcare support. Some of the insurers are also facing talent shortages to handle complex claims worsened by shifting customer expectations.
The picture is likely to get worse before it gets better. “Based on the high court’s judgement on 15 September, the Financial Conduct Authority’s (FCA) test case on business interruption (BI) claims may have a substantial impact on UK insurers,” says Bagdadi. “Not only will they have to pay out claims that they have not factored into their pricing, but they will have to do so quickly — probably within four to six weeks. This means that most insurers will use their highly experienced, in-house staff to manage complex claims covering quantum valuation and coverage. Inevitably, they will be compelled to look again at their operating models and explore partnerships with third-party claims service providers to drive automation and digital interventions to optimise the triaging and management of lower value, simpler claims.”
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