How insurers can systemise claims to simplify compliance

Australia’s General Insurance Code of Practice, created by the Insurance Council of Australia (ICA) is perhaps better known by your business as ‘GI COP’, ‘The Code’, ‘The code of practice’ or even commonly prefixed with “ugh!” has been overhauled and in effect since January 2021. This is just one of the major regulatory changes insurers must now navigate. The Hayne Royal Commission has forced all general insurers to pause and consider their intent with regard to all general insurance products, which includes motor and motor claims.

The key themes of the reform include education and transparency of insurance products, licensing and handling of claims – as they are now regulated as a financial service (think of banks, loan applications etc), and the way insurers manage disputes internally. All of these favour support to the end customer in an open, honest and fair manner when dealing with the insurer, their suppliers and third-parties.

Following are some of the ways systemizing these changes can really simplify meeting these new regulations in the motor claims industry.

Technology is advancing and insurance customers expectations are also advancing

Insurers can expect their customers to want real-time updates and to even self-service these updates. Gone are the days when you can expect to have to pick up the phone and speak to someone to simply discover your vehicle has not been assessed yet.

Claims management software provides a centralized approach to keeping the customer informed across the entire claims handling experience. You shouldn’t have to rely on paper to-do lists, manual reminders in your claims handlers, calendars or even digital workflow lists to manually contact your customers to provide them with any update any longer. Technology now enables you to provide consistent experiences, and relevant and up-to-date information to your customers every time.

Regulators want to know insurers are living and breathing the change – and to prove it

Consultancies have been run off their feet managing inquiries and providing advice on where insurers need to start to demonstrate compliance. Often, the opening statement is something along the lines of, “It all goes back to the intent of the reform.”

Yes, some of the regulations have specific timeframes to adhere to, most specifically the new Code (of Practice). The regulatory reform is customer-centric. If insurers are designing their systems and processes to support the customer’s best interest in reducing the claim lifecycle, promising and providing evidence for quality assurance, and keeping them informed along the way, then often you’re well on your way to meeting the obligations without even knowing it. Albeit, possibly with some traceability catch up for your Risk and Compliance teams.

Partner and suppliers relations are more important than ever

There can be many parties involved in managing a motor claim end-to-end. That is why it is so important to streamline and integrate your systems to avoid misinformation, double-handling, human error, time delays and even blind spots affecting your claims handlers, and therefore customers.

A single source of truth enables automation, where more data and more information can be learned and applied to custom workflows using an intelligent claims management software. This is particularly relevant as the Claims as a Financial Service (CFS) legislation brings a new level of change and uncertainty for most suppliers and third-parties involved in claims handling.

Use your data smarter to mitigate risk and highlight gaps for improvement

Imagine if your system could mine for text using Artificial Intelligence and identify patterns that are likely to lead to fraud, complaints and disputes. Better yet, imagine if your systems could follow algorithms to produce the necessary information to the customer at the outcome of a claim. The new statement required to be issued to customers when there is more than one option, including cash, at the settlement of a claim is an excellent example of where the risk of manually handling this statement may simply not be within the appetite of your business. Not to mention the operational requirements, including training, performance management and quality assurance checks you may need to consider if manually producing these papers.

With uncertainty comes opportunity. Technology is an enabler. Regulator change is not intended to be a burden. Systems with a central source of truth are even more important than ever before. Insurers, partners and suppliers are strengthening their relationships to support one another. Data is key in systemizing compliance solutions. Motor claims management software is out there now to do all of the above!