Beyond Underwriting: how claims can become the new driver of transformation

Insights from London Market Claims 2024

The team at Folio Group attended the London Market Claims event on Oct 8th, where we heard from a variety of experts leading transformation initiatives on behalf of their companies. While the key themes of AI, technology, data, and talent were similar to last year, it quickly became clear that a small but significant movement is emerging within the claims community.

The industry is at a critical juncture, facing a wave of technological advancements, changing customer expectations and an evolving risk landscape. Many conversations about how to tackle these changes often start with terms like “product” or “underwriting,” but rarely do we hear the words “claims” or “service” used to describe the transformation. However, this year, several claims leaders seem to be re-positioning their team to be front and centre of this transformation. They see claims as an opportunity for their businesses to deliver an exceptional customer experience, which directly impacts the end customer and the perception of their brand.

This message was reflected in the opening keynote presentations and subsequent panel discussion which highlighted three key areas that require urgent attention from the claims community:

✅ Digitalisation of our functions

✅ Talent development

✅ Customer service

Whilst we are in total agreement of these key themes, the challenge will be whether it’s feasible to address these simultaneously. They all have the same level of importance, but the challenge will be finding leaders with the capacity to tackle the transformation on all fronts.

On the technology front, there is frustration with costly digital initiatives that have yet to fully deliver on their promises (a common theme throughout the day). However, the audience was encouraged to focus on the tangible benefits emerging from technologies like AI, rather than dwelling on their shortcomings. Many examples were cited such as AI-powered policy summarisation and chatbots, with speakers stressing the need to invest in tools that augment, rather than replace, the deep expertise of claims professionals. All were quick to point out the merits of ‘just getting started.’

From a talent perspective, one speaker said,

“Our people will continue to guide our leadership position in claims.”

Alongside technological transformation, this underscored the challenges of developing future leaders in an increasingly specialised workforce. As claims professionals become more expert in their respective domains, they often lack the broad, cross-functional experience required to lead diverse teams.

“We must be more deliberate about training and development”

The audience was urged.

One consideration would be how we increase the levels of relationship management skills in our claims practitioners. Do we need to make our claims people better at selling the overall proposition?

Another recurring theme throughout the day was the challenge of attracting talent to the industry. From our perspective, while underwriting seems to be making strides with initiatives like internships and school-leaver programs, the claims community appears to be lagging. Some might argue that claims just isn’t “sexy” enough to draw in fresh talent but that’s simply not true. Claims are at the heart of why insurance exists, and we have incredible stories to share. The problem isn’t the appeal of claims, it’s that we haven’t been telling those stories. effectively.

Perhaps most critically, the opening session concluded by outlining a vision where exceptional customer service from our claims teams becomes the industry benchmark. This includes clear policy language, transparent claims processes, empathetic communication and enabling customers to actively participate in the resolution of their claims. It’s a great vision isn’t it, and one that’s tangible, we just need to learn to ‘sell’ what our claims teams do in a better way to be allowed to lead this change.

We wholeheartedly, support this vision, and we see an industry that will make the claims experience exceptional, and provide great risk management. Moving to a “service-led” proposition, which is supported by insurance products when losses do occur.

In summary, as the insurance industry continues to evolve, our Claims proposition needs to be at the centre of this turning point. By putting customer experience at the forefront, attracting and developing talent, and embracing digital innovation, claims can enable our market to cement its role as a global leader in insurance expertise and innovation.