Claim Central Chief Executive Brian Siemsen shares his thoughts on international trends in insurtech
Last month, our CEO Brian Siemsen, was invited to participate in a panel discussion at the Insurance Business Insurtech conference in Sydney, along with other industry experts.
During the discussion, Brian shares his view on what he thinks are the upcoming international trends in insurtech. Below is a transcript of his responses.
Moderator: Angus Kench, Vice President Claims Asia Pacific, Liberty International Underwriters
Panellist: Brian Siemsen, Chief Executive Officer, Claim Central Consolidated
ANGUS KENCH: What are the key international trends we are seeing? As you’ve probably heard one of the challenges in this space is the very segmented insurance market. We talk about insurtech, and yet we have commercial, we have reinsurance, we have retail. Can you give us the key takeout of what you think the key international trends are for your particular space? Brian, you’re just back from the U.S. so you’ve got some good insight into some of the international challenges.
BRIAN SIEMSEN: We’re obviously in the claims space, and to the other panellists especially to Cecilia (Warren), I’m a little bit obsessed with connectivity as well. Just in a different context of having a concept where everyone is digitally connected in a claim, and the focus is on the policyholder and the customer, what could we do around that experience, and then certainly on the outside of that in terms of economics, what you could do in terms of cost and speed.
The digitalisation of a claim for us was something that we certainly felt whilst working inside the claims process, and connecting the insurance layer on top, and working with a bunch of incumbents both here and internationally, that problem statement was a very real problem statement. The confusion that lies around a claim, creates a bunch of leakage, there’s margin on top of margin that still exists today. We really haven’t tackled the trends I’m seeing in the supply chain or the appetite that we want to digitise the supply chain and create a performance layer around the supply chain.
We’re allocating indemnity spend to the best performing suppliers in that supply chain, and there’s a real appetite for that, especially in the US now. Most folks might not realise, there’s a bunch of legislative changes that are happening in the US where insurers are now able to invoke a right of repair. Over in the US typically, the claim gets settled at the point of cash settlement.
But with Cyclone Harvey and Cyclone Irma, customers were left with a bunch of cash settlements, and no way to repair or fulfill properties. Especially in the southern states and the jurisdiction in which we operate in Florida, the longer the claim goes, the more exposed they get to litigation, AOB’s (a sovereign of assignment of benefits), and there’s a real appetite to manage the customer from the start of the claim to the end of the claim, and that’s a real paradigm shift in the US because typically there are up to 14 different stakeholders involved in a typical homeowner claim. I’m not kidding, there are actually 14 different stakeholders.
One of the best and most rewarding trends we’ll see in terms of talent in all these carriers, is they are looking to gamify the claims process. They’re looking to take 16 different systems and bring them down to one or two systems and the impact of that is when you sit there and look at these different organisations, we’re empowering, well in fact we’re disempowering claims handlers and claims examiners, we’re driving customer centricity and that’s the focus – to look after the customer – and yet I’m sitting in front of 16 different screens having to manage 16 different levels of data to try and fulfill the customers’ requirements and needs.
The focus in the geographies we’re working in has been an interesting experience to experiment with how can we get down to a one platform view for a claims handler to meaningfully interact with a policyholder, whilst controlling things such as speed of claim, customer experience and the cost elements around a claim. The trends for us is that we are seeing the focus is on the claims handler and the employee working directly with the customer, and the whole digitisation of the supply chain.