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INTERVIEW WITH
Tom Upton
Head of Claims Performance - Marine & Energy
Innovating Insurance: Understanding Emerging Risks in an Uncertain World
With satellite imagery, high level damage assessments can be performed within a matter of hours.
What recent insurance innovation impresses you the most?
Historically, the insurance industry has struggled to keep up with others when it comes to innovation. Major changes have been hard to implement, as the complexity of the industry means that there are always vast knock-on effects. That said, significant leaps are being made and the pace is now picking up. One of the more impressive developments I have seen recently is in the use of satellite imagery. It has proved hugely beneficial when it comes to catastrophic events, both natural and man-made. Catastrophic events, such as hurricanes or war, are often tricky to get ‘boots on the ground’ for, and the longer it takes for an adjuster to be on the scene, the more uncertainty there is. But with satellite imagery, high level damage assessments can be performed within a matter of hours. This helps bring certainty both to the insurer and insured. The imagery also provides key insights for insurance companies on where to focus their attention and reach out to customers to tailor the assistance to the best locations.
How important is customer service right now for insurance companies?
Great customer service is no longer a ‘nice to have’ for customers in the insurance industry, it has become an expectation. Whilst expectations may differ across different types of customers and industries, there is a general consensus of what great customer service should look like. During the initial stages of a claim, it means proactive, open and quick communication. Customers expect the circumstances of their claim to be investigated quickly and when established, expect a short time frame for their claim payment to reach their bank account. Customer frustration can arise when there are delays in settlement once the claim has been agreed, so it is in the best interest of insurance companies to ensure prompt payment if they want to retain their customers. To deliver a great level of customer service, there are a few things that insurance companies can do. This includes working closely with loss adjusters and brokers, along with other insurers, to try to tackle any potential issues head on, and being open and transparent with your clients, so that if there are any aspects which may cause delays, you can attempt to deal with them during the adjustment process, rather than afterwards. Often, not only does this shorten the life cycle of the claim, but it also reduces possible contentiousness, as any issues are dealt with early on, in a fair and pragmatic way.
Great customer service is no longer a ‘nice to have’ for customers in the insurance industry, it has become an expectation.
We are now at a point where it would be beneficial for insurers to share data more freely to achieve better outcomes for everybody.
Tom Upton
Head of Claims Performance - Marine & Energy
Markel International
What are the top priorities for insurance companies in the coming years?
Improving the availability and flow of data is crucial to improving the insurance industry for everybody. Access to real time information is always improving and insurers are using a lot of tools to get this information, but these don’t always cover everything. We are now at a point where it would be beneficial for insurers to share data more freely to achieve better outcomes for everybody. Alongside this, the insurance industry also needs to improve its use of AI, particularly when it comes to trend analysis. Being able to spot trends may then allow the market to feed this back to the insured, helping them mitigate their losses (assuming, of course, the starting data is accurate). The final focus needs to be improving claims data, as this is what will allow a better understanding of the risk and therefore it should be a key risk management tool both for the insurers and insureds.
