“Quite simply, if insurers and repairers had access to reliable information relating to the real cost of repairs and replacements, the argument between insurers, third parties and claimants would be less complex and more transparent,” said Danni Robson (pictured above).
Many stakeholders in the motor insurance claims space would agree with her observation.
Robson is head of product for Arnie Software (Arnie), an insurance claims automation platform developed by Melbourne-headquartered Yarris Technologies.
At the upcoming Claims Leaders Summit Australia, Robson is moderating a panel of insurance leaders as they discuss how to manage rising claims costs and customer service challenges in the motor claims space.
She said “a disjoint” between manufacturers and motor vehicle insurance repairs makes steps in the claims process “more cumbersome than necessary.”
Robson suggested that a dysfunctional relationship between insurers and their repairers on the one side, and part makers on the other, is a big driver of motor claims issues.
“From knowing what is a fair and reasonable part price to pay for replacement, to pre-empting and mitigating the most dangerous, expensive and time-consuming repairs and causes for claims based on real data and insights,” she said.
This unhappy relationship, she suggested, also contributes to unreliable information concerning the real cost of repairs. For example, said Robson, accessing parts prices from car manufacturers can be a challenge.
“Not to mention the delays the end customer experiences as these manual processes to research, validate and provide evidence to support outcomes hinder the claims experience,” said Robson.
Despite the huge leaps in technology impacting the claims process, like automation and artificial intelligence (AI), Robson said many of the issues in this area remain unchanged.
“Many of the problems with the current motor claims process are the same today as they have been for many years,” she said. “While simple to identify, they are not easy to resolve as they involve people and relationships.
However, Robson has some suggestions for insurance firms.
“Know your prices,” she said. “By gathering your insights from internal and exogenous sources to gain a broader view of historical, current and forecasted costs - you’ll be able to make more informed decisions from a product and pricing, claims operations and assessing perspective.”
Robson said the costs of a motor claim can involve “many variables.”
“From operational costs to repair costs and other claims handling services including tow, hire car and storage expenses,” she said. “By having a clear view of these variables over time, each cost can be managed more stringently.”
For example, she estimated that about 10 hours of a senior assessor’s time each week would cost an insurance firm about $30,000 per year.
“That’s up to $30,000 per year to redirect expert time on upskilling and training on ADAS calibration and vehicle technology changes in the industry to look out for,” said Robson.
Another motor claims expert concerned about rising costs is Daniel Lukich, sales and strategic relationship manager for AAMC, one of Australia’s largest providers of motor accident management services.
“There’s obviously a massive focus on motor claims inflation for insurers,” he said. “The cost of repairs and the overall cost of a motor claim is worryingly increasing for a lot of insurers.”
Lukich said, in recent years, the industry has seen a “massive increase” in not-at-fault third party activity.
“Some players in the sector are applying ever evolving sophistication in maximizing profits around the cost of car repair and the provision of replacement (hire) cars,” he said.
AAMC is sponsoring the Claims Summit.
Robson’s panel: Managing the Cost of Resolving Claims, includes insurance claims experts from Hollard Insurance, Suncorp and Brooklyn Underwriting.
One focus will be looking at ways of integrating data analytics and digital channels to drive efficiencies in customer processes while reducing expenses. The panellists will also discuss strategies to optimise and streamline the claims process and overcoming regulatory pressures.
Arnie is a Gold Sponsor of the Claims Leaders Summit Australia.
The Summit is taking place at The Fullerton Hotel in Sydney on May 9. You can find all the information on the event and register to attend here.
