Increasing claims management by adopting a collaborative approach with customers

Over the past 20 years, the claims management role has evolved significantly, from a largely back-office function to one centered on partnership and mutual benefit. In today’s market, claims are now at the forefront of customer-insurer relationships, playing a key role in promoting a proactive, collaborative and partnership-centric approach.

In May 2024, Liberty Specialty Markets worked in partnership with UK risk management association AIRMIC to conduct a Pulse Survey on Claims. Research has demonstrated how critical claims service levels are for risk managers when choosing their insurer, with costs increasingly taking priority. This trend is evident across different industry sectors and claims arrangements, from those with high deductibles and captives to in-house claims services and third-party administrator (TPA) claims services.

Experience over expense

Claims are no longer just the point at which an insurer’s product is tested; they are an integral part of the overall customer experience from the start. With more than half of those surveyed highlighting the importance of claims service levels, it’s clear that risk managers are not just interested in making possible cost savings. Instead, they want their claims team to be actively involved in the bidding, bidding and renewal process.

Of respondents who said their insurer’s claims team was involved during the renewal or quote process, the overwhelming majority (98%) said they found this helpful. Ongoing dialogue between underwriters, claims teams, brokers and buyers can help prevent surprises down the road. This communication also plays a key role in policy formulation and cover design, for example, essentially ensuring that all parties use the tools and experience at their disposal to protect the client’s portfolio.

Importance of Onboarding

When it comes to risk placement, there is a much larger and important role for claims teams to be involved in this process. I’m more and more in the room from the beginning. As a result, the onboarding process becomes a real point of interest.

Establishing the right relationship early on eradicates ambiguity by establishing terms of engagement and defining preferred work styles early in the process. Moreover, it provides access to the added value that insurers and brokers can offer, tailoring the experience to the needs of individual companies. In fact, this approach ensures that claims management extends beyond traditional investigations and payments to encompass the entire policy lifecycle.

It is incumbent upon claims professionals to truly understand the sectors their clients are in, in addition to areas of concern for each, they should stay ahead of regulatory risks and trends and be able to proactively update all stakeholders .

Proactive risk mitigation and policy review are essential to ensure that, should a claim arise, their cover remains relevant and effective. To that end, nearly three-quarters of risk managers surveyed said they valued risk mitigation advice, with 60% saying loss scenarios and trend updates (58%) from their insurers were valuable as additional information , far beyond generic relationship management. .

Valorization of data and information

Claims teams possess a wealth of untapped data, learning and development capabilities, trend analysis and loss scenarios that can add value to customers when tailored and aligned to their business needs. By analyzing historical patterns, claims teams can identify emerging trends and potential risk scenarios. Tailoring these insights to clients’ specific contexts can improve their risk management strategies, supporting informed decision-making.

In general, technology, especially the use of artificial intelligence (AI), if used correctly, will free up claims handling time to focus on more value-added activities. Take large language models for example: by making it possible to automate more administrative aspects of the complaints process, teams can reduce operational burdens and reduce complaint handling times, which most importantly allows them to spend time on the customer experience.

But while clients recognize this, the survey found that with negligence and bad advice the leading cause of loss in claims for risk managers, almost three-quarters of respondents said they were not yet prepared to challenge claims decisions taken by AI. To this end, working with insurers and brokers is vital for policyholders to get more mileage out of their policy and work on risk mitigation models with their providers. Based on the survey results, it’s fair to say that those who don’t have these internal capabilities stand to benefit the most from this.

Strategic partnerships

Strategic partnerships benefit both the insurer, the broker and the insured; there are no downsides. They should be tailored to the client’s needs, facilitating added value along the chain, from internal functions within the insurer to growing relationships with external suppliers.

Business development (BD) should support strategic partnership. Although not often discussed alongside claims, this role brings together all the necessary components an insured may need through their relationship with an insurer, working closely with client executives, underwriters, third-party providers and other key stakeholders.

As impartial members of the complaints team, BD professionals focus on granular assessment of service delivery. Their insights lead to innovative solutions tailored to clients’ unique needs. Liberty hires client executives and BD representatives to help navigate large insurance company structures, tailor service offerings to client needs, and work collaboratively with brokers.

Evolution of claims

Finally, claims will play an increasingly important role in insurance placements, and the bar is constantly being raised in terms of claims performance and added value to clients.

The AIRMIC report indicates that risk managers are placing more stock in claims service, value-added and relationships; Providers and brokers must therefore ensure that these offers are available both before and throughout the policy period. Today, there is a clear need for a more sophisticated relationship between the insurer and the buyer. We believe this can be achieved through greater collaboration between broker, client and claims teams, targeted innovation and responsive solutions.

As we look to the future, it is clear that the claims function is evolving to become a more strategic partner to customers, generating real value through innovative solutions and proactive engagement, as well as leveraging data insights to maintain a competitive advantage.