Insurance and Digital Self-Service
This mini-rant is in response to an article just published at the always interesting InsuranceThoughtleadership.com about the Growing Demand for Digital Self-Service:
https://insurancethoughtleadership.com/growing-demand-for-digital-self-service/
From the article, "For our industry this personalization, convenience and level of service have become expected by consumers, regardless of who they are insured with, what vehicle they drive and what the characteristics of their accident were. Through new capabilities such as self-service claims, the consumer no longer waits days for an estimator to take photos; the extent of damage is knowable at first notice of loss (FNOL), and vehicle damage photos facilitate speedier decisions to be made about the claim (see Figure 2)."
Aside from pointing out that ordering a latte at Starbucks is a little bit different than an insurance transaction, this is my story....
I had my first physical damage auto claim in a half century last year, so my personal experience is purely anecdotal. I spoke to the insurer's claims department on the phone and was referred to their app/web site to take photos of the damage and process the claim without one additional second of human intervention.
The app told me exactly where to stand to take the photos, which was strange because in no way did they actually reveal the extent and nature of the damage. By the next day, I had a detailed report that the damage was approximately $1,200 and would take 2 days, 4 at the most, to repair at the insurer's recommended service center.
Well, 31 days and over $5,000 later, I finally got my vehicle back. During that time, not a single person -- adjuster, agent, or the repair shop -- ever followed up with me. I had to initiate every Q&A session. THAT is the "customer experience," not the nifty phone app.
This is my 50th year in the insurance industry. I understand how things work (or so I thought). Just imagine how an ignorant (and I mean that kindly) and inexperienced consumer would feel. Having an auto accident is an emotional event, blocking traffic, dealing with law enforcement, not know what's going to happen with regard to the claims process, etc. There is a need and value for some measure of hand-holding and reassurance.
"Digital self-service" is a meaningless and valueless part of the process if my experience is even remotely representative. Like much of this type of technology, the beneficiary is almost exclusively the insurance industry which doesn't have to be bothered by the pesky rabble they insure. Or so it would seem in my one anecdotal experience.
What is your experience, either personally or as an insurance professional? Is there a growing demand for digital self-service in the insurance industry? Again, based on my personal experience, if there really is a growing demand for digital self-service from the insurance industry, the adage "Be careful what you ask for" comes to mind.
And, while I'm ranting, one more time, could we please stop comparing selling and servicing insurance to buying coffee at Starbucks and paper towels on Amazon?
Now, for more on coffee vs. insurance....
https://insurancecommentary.com/whats-faster-insurance-or-coffee/
2nd thought- visual image recognition combined with AI to estimate repair costs and times is a step too far today. The sheer volume of images/data required is greater than that currently available. This is probably the reason your estimated costs and time to repair were so far out. It is realistic to use photos/video and simple indicators like " did airbags inflate" to categorise as repairable or total loss. Even then there is significant proportion that need investigation. Self-service FNOL? combined with straight-through-processing leads to the problems you faced. Combining elf-service technology with adjusters human intuition & help and real-time updates on status of vehicle repair it is a boon to customers and will cut costs if the whole supply chain choreographed for service and efficiency
Strikes me this is a case where the insurer’s goal is full automation tp cut costs rather than offering a mix of claims Handler and ability for claimant to provide evidence at time and via device of convenience. Claimant should always have access to empathetic human and both see same information. Real-time status updates. One weak link in the chain is the repository network. Often insurers have no sight of what goes on, costs and time escalate and seems You I suffered this. Sounds like a poor technology snd implementation to me rather than a case against self-service as AN OPTION. Also unfounded faith in the application of AI and automation by the insurer which falters on the rocks of incomplete or inaccessible data.
Solution Architect & Senior Expert Insurance at SAP - In early Retirement
5 年Yes, I am demanding digital self-services (means getting or providing structured data - not just electronic messages or documents like e-mails or pdf-files, which do not contain XML or JSON schemes). And I am demanding real-time updates or straight-through-processing, when carrying out such self-services. Regarding claims or benefit cases, I'd like to have several steps within the process chain as self-services ('calmly' at home after work), such as uploading photos or PDFs of invoices or other documents, answering additional questions, initiating a dispute, or providing feedback.? Regarding changes of existing policies, I'd like to process simple changes self-determined. German policyholders are doing this for years. That's the reason why our in-force business software SAP Policy Management (FS-PM) supports real-time digital self-services comprehensively:?https://blogs.sap.com/2010/12/20/insurance-changing-existing-policies-remotely-the-new-normal/
Protector of what matters most to you: Your Family and Your Business-Goldsborough Independent Insurance Services, Pres
5 年Insightful as usual BW! Somehow I?had missed the book. Just ordered and excited for it to arrive....how sick am I that I can't wait to get my hands on a book about insurance coverage!? Damn you Bill Wilson! ;) (#WhenWordsCollideBook.com)
Insurance consultant, educator, and writer.
5 年Digital self-service is beneficial where it removes redundancy from a process but it has to be supported by human interaction especially where the customer needs assistance or the digital self-service element has flagged something that needs verification or there is an anomaly. The question is whether the digital process is intuitive enough to spot such anomalies or recognise that more help is required. It may do in the future, but in the meantime, it is wrong to assume that customers will accept digital solutions as the only way to go. Not all customers are millennial digital savvy converts.