I’ve approached several Executives from different areas of the claims market to share their thoughts and opinions on a number of topical issues impacting the sector and looking at the key challenges and opportunities for the future.
Today’s review is with Graham Gibson – Chief Claims Officer, Allianz UK
Artificial Intelligence (AI) is increasingly being rolled out across insurers processes. What is your attitude to AI and how do you see this developing over the coming years?
I’m excited about the increasing integration of AI across the insurance industry as it has the potential to revolutionise the way we handle claims, leading to improved efficiency, faster processing times, and enhanced customer satisfaction. By leveraging AI technology, we can automate processes, analyse complex data to identify fraudulent activities, and make more accurate claim assessments.
Over the coming years I see AI playing a significant role in claims management and anticipate that AI will enable us to better understand and predict claims patterns, leading to more proactive and personalised claims handling.
While leveraging AI offers numerous advantages, it is important to ensure that its implementation strikes the right balance between technology and people. To effectively integrate AI, we’ll need to continue investing in our workforce and equipping them with the necessary skills to maximise the potential benefits it offers.
Will the increased usage of AI reduce indemnity spend and/or improve customer service?
The increased usage of AI has the potential to positively impact both indemnity spend and customer service. AI can contribute to more accurate and efficient claims processing, leading to reduced indemnity spend through improved fraud detection, better risk assessment and faster claims resolution.
AI’s ability to analyse large volumes of data and produce outcomes that can help identify patterns and trends may accelerate claims settlements or assist in the identification of fraud, ultimately leading to cost savings. Additionally, by automating routine tasks and streamlining processes, AI can contribute to operational efficiencies, further impacting indemnity spend and allowing our handlers to focus on value added activities and dealing with more complex claims.
AI has the potential to improve customer service by enabling faster claims handling, personalised interactions, and proactive communication. Through AI-powered tools, we can provide customers with more accurate and timely updates on their claims, leading to enhanced satisfaction and overall experience.
Are insurers becoming truly digital?
Insurers are making strides in becoming truly digital. The industry is embracing digital transformation to enhance customer experiences, optimise operational processes, and leverage data-driven insights for quicker informed decision-making.
Insurers are increasingly investing in digital technologies such as artificial intelligence, machine learning, automation, and advanced analytics. This allows them to streamline operations, improve risk assessment, and offer more personalised products and services. These digital advancements are not only reshaping how insurers interact with customers but also enhancing internal processes.
The shift towards digitalisation can be seen through the increase in online and mobile platforms, such as the Allianz Claims Hub, allowing customers to access insurance services, report claims, and receive support digitally. This allows for a more seamless experience for brokers while providing further insight to enhance our products and services.
How is the impact of Consumer Duty affecting your business, and with many involved in the claims process seeing an increase in complaints, what do you consider the reasons for this to be?
The moment at which a customer makes a claim has the potential to be a stressful time, and customers want clear communication, prompt resolution, and fair treatment throughout the process. It is also at the point of claim where it may become clear that a product or terms of cover are not in line with customer expectations when they were sold the product. Customer feedback at the point of claim, and where we get it wrong, customer complaints, provide fundamental insight to support our delivery across Consumer Duty outcomes.
At Allianz, we were already committed to delivering great service and empowering our people to make the right decisions for customers. We’re continuing to enhance our communication, transparency, and customer engagement throughout the claims process, as well as using claims insight to drive improvements throughout the customer lifecycle, to ensure that our customers receive good outcomes at the point of claim.
With ongoing supply chain shortages and the rising prices of goods, what measures are being taken to protect service and response times?
We’re working hard to mitigate the impact of ongoing supply chain shortages and rising prices of goods to protect service and response times. We’re proactively communicating with our customers to manage expectations regarding potential delays in repair or replacement services due to supply chain disruptions and offering alternative cost-effective solutions such as green parts and repair over replacement.
We work closely with our suppliers and approved repairer network to streamline processes and we’re empowering our claims teams to do what is right for the customer. We remain committed to delivering exceptional service and upholding our customer-centric approach, even in the face of external challenges.
However, we need to be realistic and global supply chains have not returned to pre pandemic efficiency with the continued global unrest is only adding to the uncertainty.
What more can be done to validate the ESG credentials of insurance supply chains?
Validating ESG credentials in the insurance supply chain is key to promoting sustainability and I recognise the importance of enhancing ESG validation within our supply chains.
Allianz was one of the first insurers, to include ESG measures as part of our scoring mechanism when undertaking a procurement process.
We’re actively engaging with suppliers to promote ESG awareness and providing guidance on sustainability best practices, encouraging transparency in reporting, and collaborating with suppliers to address ESG-related challenges. We’re promoting ESG principles across our supply chain operations and working collaboratively with our partners to advance sustainability and responsible business practices within the industry.
What more can the industry do to promote careers in the claims sector?
It’s vital that we’re promoting careers in the claims sector to ensure we have the right skills in the workforce for the future and attract talent to the industry. We’re collaborating with educational institutions to raise awareness about the diverse career opportunities within the claims sector and last year introduced our Claims Apprenticeship programme.
We’re also focused on professional development, providing clear pathways for career advancement within the claims sector such as professional qualifications to retain talent, and fostering a supportive and inclusive environment for claims professionals. We have completely overhauled our skill matrix to ensure it is fit for the future and we can demonstrate clear career paths to our people.
We can do more to showcase the role of technology and innovation in modern claims management to demonstrate the dynamic and evolving nature of careers in claims and attract individuals with an interest in innovative solutions.
Where is your organization in its DEIB (Diversity, Equity, Inclusion, and Belonging) journey?
Allianz is advancing in DEIB across the organisation and recognises the importance of a diverse and inclusive workplace where everyone feels valued, respected, and empowered. Allianz has implemented a range of initiatives and strategies to drive progress in this area, including our employee networks which provide a platform for employees to connect, share experiences, and advocate for diversity and inclusion. These groups play a crucial role in fostering a sense of belonging and understanding within the organisation.
We’ve implemented training and awareness programmes to educate employees on the importance of diversity, equity, and inclusion and have implemented inclusive policies and practices to ensure equity and fairness in areas such as recruitment, promotion, and compensation.
Allianz is continually driving forward its DEIB journey, recognising that diversity, equality, inclusion, and belonging are essential components of an innovative workplace.
Consumer Duty – How has your organisation satisfied itself that its products and services are well designed to meet the needs of consumers in the target market, and perform as expected?
We have implemented rigorous processes and practices to ensure our offerings align with consumer needs and expectations.
Through market research, product development and testing, and customer feedback mechanisms we regularly review, improve, and refine our products and services to adapt to changing consumer needs and market dynamics.
Will a labour Government bring further regulation?
A change in government can lead to shifts in regulatory frameworks and legislation, including those impacting the insurance industry. It’s therefore important for insurance companies to closely monitor political developments, engage with industry associations, and maintain a strong understanding of any potential regulatory changes.
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All the best,
Gary Pike
Founder & MD Right International
