The fifth session of the ARC360 Digital Event Series – Looking Ahead – looked back on a year of pandemic from an insurer’s perspective, and looked ahead to a post-Covid world when the claims journey might be very different to what it is now.
Taking part in the keynote interview was Rob Harper, head of claims business performance, Admiral Group, which has been trading for a quarter of a century and with more than four million customers and a repair network of over 400 sites, boasts a 50% marketshare in the sector.
He said, ‘Claims is that moment of truth for us, it brings our product to life. We recognise our supply chain as an extension of ourselves so we expect them to represent our culture and values. That can make us a demanding customer at times, but it comes from the right place.’
Highs and lows
He admitted that 2020 has posed incredible challenges that none could have foreseen, particularly around work volumes going into the network – ‘There’s no denying it’s been tough,’ – but insisted there have also been a number of positives to reflect on.
He said, ‘The resilience of the industry is a highlight. Many would have thought it wouldn’t have survived Covid. But we’re still here and we’re still repairing cars. We’ve been able to remain operational throughout and our supply chain has allowed that to happen.’
Rob said that amount of investment still going into the repair sector is another reason for optimism, and agreed with a recent ARC360 survey that found the majority of respondent expect some form of normalcy to return in the second quarter of 2021.
‘The industry is talking a lot more, too,’ he continued, ‘and ARC360 is good example of that. We’re more prepared to share insights for the greater good. That was especially true in the height of lockdown. On a personal level, I’ve been able to build working relationships with people because of Covid that I wouldn’t have otherwise, while key relationships have become even stronger.’
Perception
Even the often taut relationship between bodyshops and insurers has been softened in many cases, although there has been a perception that insurers have reaped vast financial benefits of the drop in claims and might have done more to support the industry.
Rob pointed to the £25 rebate Admiral offered policyholders, the first in the industry to make such a gesture, which added up to £110m.
‘Everyone here is incredibly proud of that decision,’ Rob said, before explaining that in fact insurers have not had the easy ride some suggest. He explained how any gains in motor have been eroded by dramatic losses in other lines, such as travel and busines interruption, while repair inflation, intense competition and a likely change in driving habits present real headwinds for the sector into 2021 and beyond.
‘It’s not necessarily a bed of roses for insurers,’ he said.
Claims
Amidst these challenges the insurance industry has evolved at a rapid pace this year, in many cases switching thousands of people to home working in a matter of days, while maintaining relationships with suppliers, both existing and prospect, on remote basis.
That intense adoption of technology is also impacting the claims journey, and Rob believes the trend towards automation and digitalisation will accelerate. He pointed to repair tracking and imaging as perfect examples. Repair tracking allows the motorist to follow their repair through every step of the journey and can go a long way to eliminating time-consuming phone calls, but it is not always available, while imaging does not always provide accurate estimates, meaning insurers still need engineers to validate costs.
However, Rob warned that at all times the priority of progress must remain choice for the customer. He said that while artificial intelligence can streamline the process it must be combined with human interaction, and although digitalisation can create a low touch claims experience, that might not be preferable for everyone.
‘We mustn’t completely remove the human element. We have to give our customers options.’
ARC360, in association with I Love Claims, is supported by corporate partners BASF, BMS, Copart, EMACS, Entegral, Enterprise Rent-a-Car, Mirka, Nationwide Vehicle Recovery Assistance, S&G Response, Sherwin Williams and CAPS; partners asTech, The Green Parts Specialists, Indasa, Innovation Group and Prasco; and strategic partners AutoRaise; NBRA; RepairTalks; and TrendTracker.
