Billions of dollars are paid out in P&C insurance claims each year, yet many firms still underinvest in claims transformation.
Kevin Reilley, CEO at Westhill Global, said, “The largest items on an insurance company’s balance sheet are the loss and LAE ratio. Comparatively, carriers are probably not investing enough in claims.”
This doesn’t mean firms just need to throw money at the problem. “Big improvements don’t always mean unreasonable investment,” he added. Instead of replacing large chunks of legacy infrastructure or implementing an array of tools, firms should seek to partner with specialists that boast deep expertise and can provide outsized value and ROI.
Several challenges currently facing claims within P&C insurance include balancing loss ratios and LAE costs, meeting evolving customer demands, and boosting employee success. All of these can easily be improved through technology.
When it comes to customer experience, attention is often placed at the start of their journey, rather than claims. However, it is equally important, as a bad claims experience often causes customers to seek a new provider when renewal comes around. Today, customers want streamlined experiences that get their lives back to normal as easily and quickly as possible. They expect carriers to offer this and if they don’t, they will find those that will.
Some insurers focus on minor tweaks to legacy infrastructure, but this is not enough to keep pace with the market. “We can’t ask the horse to run faster. We need to adopt new methods, or risk falling behind,” Reilley said.
AI is one of the new methods that can revolutionise claims. From automating manual workloads, to generating insights to provide customers with personalised experiences, the technology is a game changer. However, most solutions in the market focus on one problem and cannot work with others. Carriers don’t want disjointed systems that add to friction, they want tools that work within their existing systems. This is where Westhill comes in.
A partner to improve claims
Westhill is the first AI-native managed repair platform, combining front-end technology with full-suite restoration services. Supporting all claim types from residential to commercial across the continental US, their plug and play platform doesn’t require hard coding or investment to implement. The platform streamlines repairs by connecting all parties digitally to ensure work is completed efficiently, with users able to manage, track and view the status of their home restoration.
Reilley explained, “Westhill stands apart by leveraging an AI-first model to deliver a level of customisation and value that legacy models and systems can’t match. By focusing on tailored experiences powered by deep machine learning, we ensure that every stakeholder receives the most relevant insights and benefits, leading to optimised outcomes and superior value for everyone involved.”
Westhill’s clients can improve their customer experiences with a level of personalisation and responsiveness beyond the capabilities of other providers, he added. Its AI can analyse vast amounts of data in real-time and offers proactive support and tailored solutions that anticipate the needs of customers. “This approach not only solves problems more efficiently but also builds trust and satisfaction by demonstrating that we understand and value each customer uniquely.”
As companies look to transform their claims processes to meet the current challenges, Reilley emphasised the importance of humans in that journey. Instead of them working as two entities within a business, they are a connected unit. The technology, especially AI and machine learning, are perfect for collating data and offering 24/7 support, whether that is to employees internally, or answering simple questions for policyholders. On the other hand, this removes a lot of lengthy manual workloads freeing staff up to handle high stakes, nuanced and emotionally resonant parts of a customer interaction to build trust and genuine connection.
As insurers push on with their digital transformation efforts, Reilley offered them a final piece of advice. “Start with the customer and work backwards into our systems and methods. Study and define your customer personas and match your methods to each. For example, some customers need restoration and want a direct repair solution (DRP). Others want a fast accurate payment. Work on qualifying these customers upfront, in an automated way, and route the claims appropriately.
Westhill Global was recently named in the eighth annual InsurTech100, a list that highlights the must-know companies in the sector. Read the full InsurTech100 list here.
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