It's no surprise that there are many challenges that insurers face - from managing different types of products to organising cashflow and creating customised cover for commercial clients.
Without a system in place to address these challenges and centralising the way in which operations are organised and managed, a large insurer - which may be responsible for providing a vast rage of personal and commercial cover - can easily find themselves caught in an inefficient trap.
This is where technology solutions can come in and help - but in order to achieve this, insurers first need to identify areas where they could be more organised or efficient.
Being aware of the pitfalls
Simply being aware of the areas where your business does not operate as efficiently as it could can help you to make the long-term changes you need to succeed.
In the case of one major insurer, one key goal was to reduce not only claim timeframes for the customer, but to also reduce the amount of time staff spent carrying out manual tasks, including data entry and checking the price of parts for motor vehicle claims.
This particular insurer was also aware that a more streamlined system was needed to manage repairs, invoicing, quoting and parts pricing. The firm was also keen to lower the costs associated with motor vehicle repairs claims.
But the insurer also knew that if it were to adopt any technology solution, it needed to be flexible and easy to use - this would ensure that third-party repairers, assessors, and even the customers were onboard with the new system.
A technology solution for automated support
In the case of this particular insurer, the technology solution seemed simple - something that would integrate with other claims management solutions, shorten delivery timeframes, encourage higher-quality work and improve customer satisfaction.
The fully-automated ARNIE solution proved to be exactly what the insurer needed. With the implementation of Yarris supplier performance modules, price tension was introduced for contractors. Online quotations were fully automated, while repair work orders were automatically allocated based on supplier cost and performance, rather than manual handling.
Best of all, the ARNIE solution reduced the number of hours staff were spending to manually fill out paperwork or enter in duplicate data. Not only does this improve efficiency and reduce the risk of human error, but it also was able to reduce administration costs for the insurer and its related contractors - including vehicle repairers.
Real-life results
Since deploying the ARNIE solution, the insurer has noted a number of benefits, including much higher staff productivity and efficiency - in fact, fewer people were required to manage claims than during the previous manual system.
The fully-automated solution helped the insurer save an average of 21 per cent on repair costs through its first year thanks to the ARNIE automated smart supplier selection - which links insurers to repairers based on a number of criteria, including risk star ratings, quality, performance and price.
Furthermore, a three per cent sustainable saving on repair costs each year was brought about by the automated price validation of car parts.
Customers benefited from the facilitation of additional service guarantees and shorter wait times - in fact, most saw their cars returned within seven days. The streamlined, automated system also contributed to higher customer satisfaction and fewer instances of customer frustration.
From a business perspective, the real-time approach had many benefits - from automated staff reporting to efficient expenditure reporting and analysis. And with payment time to repairers reduced too, all parties benefited from greater transparency and improved cashflow.