Insurance claims are surging, driven by global factors reshaping the risk landscape. The ABI reported that property insurance claims alone hit “a record £5.7 billion in 2024”, largely fuelled by severe weather events. Meanwhile, car insurance payouts soared to £11.7 billion, with “vehicle theft and fraud” pushing claims costs higher.
Alongside this rise in claims has come a dual focus for claims handlers – one on the use of technology to help drive down claims scenarios, and the other on the use of the human touch to ensure clients are well informed.
According to Nicola Dryden (pictured), chief client officer at Sedgwick, technology can help to improve the insurance experience for clients. “I think there's always instances where you can use technology to keep premiums down, to make sure you keep the expenses down,” she said.
She argued that tech can simplify the claims process and make clients feel less pressured: “Simple things, like, if you had a contents claim, you can upload the picture. If you've dropped a TV and it's got a crack, you can upload the receipt…And they can do it in their own time. It's about customer choice.. we can pay that once we've looked at it, it will go straight through, and then we'll be able to pay that instantly into their bank account.”
According to EasySend’s online publishing, “digital claims processing offers a faster, more accurate, and more convenient way for both customers and insurance companies to handle claims.” Dryden, did, however caution that it is about balance: “We need to make sure that we've got the right technology in place to allow customer choice, but also be there to hold their hand.”
Brokers can use tech to help clients simplify claims by:
As the claims landscape shifts, brokers are playing an increasingly critical role in guiding clients through the process. According to Dryden (pictured), it is all about being present and informative. “I think there's a real thing around education, on the importance of having insurance and being there for them to answer all their questions,” she said. Dryden emphasised the importance of brokers specifically being able to educate the customers around under insurance, stating, “it is really important because, to run a business, you need to be able to make sure you've got the adequate cover in place.”
Dryden believes that whilst incorporating tech can be hugely beneficial, it is also quintessential to consider the client. “You've also got to think about vulnerable customers, because not everybody can go through a digital journey,” she said. “And there's that balance in giving the right hand holding.”
According to a Which report, vulnerable consumers are already more likely to be severely impacted by the incident that led to their claim. When faced with inflexible processes, they are nearly twice as likely to experience problems during their claims journey (63% vs. 33% for those not severely impacted). Dryden added that there has to be that human presence along the chain. “Human touch is so important if you're dealing with a vulnerable customer because that's when they really need the support, and we might need to bring in specialist care.”
Dryden argued that working very closely with the brokers allows insurance companies to make sure that they’re “ delivering everything that we need to deliver.”
“Anything we can do to get them back on track, and we need to do quickly.. we really need to hold their hands through that journey and be that ray of sunshine,” she said.
Brokers can support clients in the claims process by:
