Seizing the opportunities of a more data-driven market. Key takeaways from The Insurance Network 2023 London Market Claims conference

Data quality and standardisation are at the heart of Blueprint Two transformation. The introduction of the Core Data Record v3.2 and the refreshed Market Reform Contract v3 will enable accurate, standardised data to flow through the entire insurance lifecycle with minimal human intervention.

Earlier this month, The Insurance Network hosted the London Market Claims conference which focused on the opportunities a more data-driven market could deliver for claims services.

Thought-provoking speakers and lively group discussions all suggested the same thing: the London claims community is eager to embrace the opportunities that modernisation will bring. Yes, there is apprehension ahead of change; but for most, this is outweighed by excitement and readiness to exploit new tools, technology and data to better the claims process and importantly, improve the customer experience.

This blog – the second in our data blog series – summarises four recurring themes from the day.

“Don’t automate a mess”

When thinking about the future of claims processing, conversations understandably turned to the opportunities that automation and artificial intelligence (AI) may bring. This was balanced with caution about getting the first step of the journey right: data.

Ultimately, data provides the building blocks for automation and AI. These technologies and algorithms make decisions based on the data they ingest and ‘learn’ from. So if the data driving these new technologies is poor, the solutions that come out the other side will be too.

Many speakers and panel representatives conveyed the importance of getting the foundations right before moving on to the traditionally more exciting technology solutions. Resolving data quality and standardisation issues was presented as a pivotal first step, with attendees being warned: don't automate a mess.

“Embrace the change, it’s coming”

Continuing the theme of the future of AI and automation in claims, one session highlighted a 2021 McKinsey report estimating that by 2030, more than half of current claims activities could be replaced by automation.

Whether this is seen in firms through more decisive technologies enabling straight-through processing – or more assistive solutions automating specific, administrative tasks – will depend on a variety of factors, but there was little doubt that the market is going in this direction.

Many carriers in the London market are already benefiting from the increased efficiencies and competitive advantage that AI and automation can bring. The overarching message was clear: innovate, or risk getting left behind. Or as one of the key panellists put it: “Embrace the change, it’s coming”.

Data and technology should enable, not eliminate

Although data and technology will play an increasingly prominent part in the claims handling process going forward, the consensus was that technology can only go so far.

Data-modelling, automation and AI can eliminate low-value, administrative, time-consuming tasks – or in more sophisticated solutions, identify trends and provide insights – but the personal experience clients receive in times of loss should not be lost.

Throughout the day, phrases like “talent co-piloting with AI” and “technology liberating talent” were shared in unison, with general excitement about the possibility of freeing up claims professionals to focus on more strategic, value-add activities for customers.

Claims handling is an inherently sensitive process, as any insurer knows; so to provide an excellent customer experience, it was agreed that technology should enable and support human input, not eliminate it.

Evolving skillsets to match the modernisation

For firms to realise the benefits of good quality, standardised data – and the technological advances that come with it – it was acknowledged that skillsets will need to evolve. And as an industry, we need to think differently about how we attract and retain talent.

Speakers emphasized the importance of developing a data culture within claims teams, with 'data curiosity' being a key skill for claims professionals whose role going forward will likely involve interrogating data, identifying trends, and making strategic decisions based on data-driven insights.

Automating simple decisions and administrative tasks will also allow for an increased focus on more complex, challenging decisions that claims professionals will need to be comfortable and qualified to make. Firms will need to provide existing talent with the tools and training required to succeed – and to rethink how they attract and onboard new joiners in a modernised world.

The Insurance Network Claims Conference provided an open forum for the market to discuss how to grasp the opportunities of a more data-driven market, and key factors to consider when leveraging new tools and technologies.

The data standards and technology solutions introduced through Blueprint Two will provide the foundations for the London market to build upon and support the delivery of an exceptional claims service.

Find out more about the solutions being built through Blueprint Two

Future at Lloyd's

30 Oct 2023