Fergal Heffernan, Customer Engagement Manager – EMEA, FINEOS
I believe that an insurance claim presents an opportunity for insurers to save money, retain customers and gain more market share.
This might initially sound counter intuitive: how can an event that costs money then save you money and help your sales?
Insurers know that they are paying too much at claim time. We call it claim leakage. Although the sources of leakage vary from insurer to insurer, all insurers will agree that a) it exists and b) it is always too high. Given that claims accounts for reportedly up to 80% of the total expenditure of an insurance company, any initiative to economically reduce leakage is welcomed.
Insurers are also aware that in reducing claims leakage, it must be balanced with paying fair compensation and providing excellent service at this critical touch point an insured person has with their insurance company.
Great service and fair compensation can cement an insurer’s reputation in the market, particularly when premium differences are small and therefore strong customer peer advocacy is vital. This combination can help drive new business sales and maintain higher retentions at renewal.
Modern claims technology can achieve this balance for insurers and at FINEOS, we continuously work with our clients to get that balance right. We want our customers to provide the best service to their claimants and ensure that they do this in the most efficient and cost effective manner.
For this reason, the claim presents a fantastic opportunity for insurance companies to improve their loss ratios. We are working hard in this space to develop technology that facilitates great service & less cost.
On 28th February 2013 in Boston, Life Insurance Company Friends First received the prestigious Celent Model Insurer carrier award for Claims. In essence, what Friends First have achieved in one year using FINEOS Claims is to significantly reduce their claims leakage but at the same time increase levels of service and solidify their market position as one of the best service Life Insurance companies in the market.
This award is a tremendous achievement for Friends First, but it also proves that FINEOS Claims is delivering on our own core beliefs – striking the balance of providing the right compensation with great service at less cost.