ILC ARTICLE

Connecting claims through technology

31st October 2023

A motor claims journey involves many parties and even more moving parts, meaning the potential for confusion, delays and customer dissatisfaction is high.

However, technology has the capacity to ease the pressure by creating a transparent, integrated ecosystem than links every stakeholder.

Here, CAPS and e2e Total Loss Vehicle Management explain how sharing data with the right people at the right time can cut costs, delight the customer, and even benefit the environment.

Kevern Thompson, CAPS Commercial Director:

Work providers and insurance companies are now turning their digital aspirations into reality with CAPS https://www.caps.co.uk/ as the UK’s trusted and secure data exchange service providing access to an unprecedented level of data facilitation at every step of the claim.

The conversation around connecting claims technologies with CAPS has finally moved from the conceptual to how work providers and the automotive claims supply chain can achieve that digital transformation. Achieving this will create a better driver/owner experience and unleash even greater efficiencies through the transparency CAPS can provide.

That first step of connecting legacy systems has now evolved into exploring how connectivity drives improved business change.

We’ve talked about data being the new oil, and that is what is happening. Fuelling data into information systems supports analytics and in turn drives innovation, creating efficiency whilst enhancing software products and services.

Already on the horizon we can see the industry working towards positive milestones that have historically been hampered by legacy systems and poor end-to-end connectivity because there wasn’t a source of data flow.

Many companies are now fast-tracking electronic notification of loss because of the connectivity fuelled by CAPS which allows more direct customer involvement enabled by technology.

This is leading to a better customer journey because the policyholder is using the technology directly at many more stages in the claim.

Many insurance companies are already using application systems such as Entegral to provide detailed repairer information to fuel direct consumer choice – for example, if they need an EV repair, or a specific manufacturer repair network solution.

The claims handler may not even speak to the customer because CAPS is connecting the claims ecosystem and all the information the customer needs can be accessed through a single app or portal.

Digital transformation is no longer a boardroom strategy; it becomes a reality when connectivity is supported by CAPS.

Jim Loughran, CEO – e2e Total Loss Vehicle Management:

How do we define a claim connected through technology? Much is currently being written about use of AI and chatbots in the claims process together with the broader digital claims experience. There is a market-wide debate on the risks and benefits of this approach: organisations and their decision makers are invested in understanding more. It’s new and exciting and no one wants to be late to the party. 

I’m keen to see the same level of appetite for connecting claims via integrated technology and processes throughout the motor claims supply chain. Specifically, I’m referring to insurers/MGAs, claims management companies, salvage agents/automotive recyclers and repairer networks. Arguably, if we get this right, the impact on cost savings, operational efficiencies and customer experience and retention can be as far reaching as the benefits from the new technologies being explored. And of course, neither approach needs to be exclusive.   

Use of reclaimed parts continues to shape motor claims repairs. The associated benefits in reduced costs and claims life-cycle, sustainability and the ability to offer customers choice are well documented. Appetite from insurers and MGAs to wholesale adopt a reclaimed parts strategy is evident. The challenge, for all parties involved, is siloed processes and technology systems. For reclaimed parts to realise the far-reaching impact they are capable of delivering, connectivity is vital across the entire supply chain. Connecting the processes and technology systems of insurers, automotive recyclers and repairers will allow reclaimed parts to be considered at FNOL; affording in some cases the opportunity to avoid a total loss scenario.

Repairers’ estimating systems can include pricing and availability of reclaimed parts in real time. Claims decision making can be swift and informed. Feeding back into the solution, data from intelligent estimatics systems can update automotive recyclers on specific parts demand, ensuring parts availability is maintained.

To answer my opening question… that’s a claim connected through technology.