Ageas’ Robin Challand on how taking a more sustainable approach to claims could help to address inflation

Post held an interesting webinar on sustainable future of motor claims earlier this month. If you didn’t see it live, I’d thoroughly recommend watching it on catch up, which you can do here.

The lively discussion got me thinking about how, as we emerge from the Covid-19 pandemic and head straight into an economic crisis, our integral ability to make claims work better for the environment and customers will be fundamental to our success. It also got me thinking about how a more sustainable approach can sometimes be a more efficient one, potentially forming a vital shield against the impact of claims inflation.

Periods of intense turbulence often spark change for the better. Take the Covid-19 pandemic, for example. The insurance industry innovated its way around the challenges, and processes that might once have been thought of as unusual are now the status quo.”

Periods of intense turbulence often spark change for the better. Take the Covid-19 pandemic, for example. The insurance industry innovated its way around the challenges, and processes that might once have been thought of as unusual are now the status quo.

Flexible working – or smart working, as we call it at Ageas – is now the rule rather than the exception. This is helping us to reduce the number of cars on the road, while still creating a working environment that supports a more diverse workforce.

Meanwhile, customers have embraced video calling, chatbots and digital self-service as the Covid-19 pandemic accelerated how we have all engaged with technology.

As a result, the proliferation of e-claims, remote vehicle assessment and artificial intelligence integration has exploded across the industry as insurers seek to simplify insurance for customers and offer an experience which aligns with their new, more digital lifestyle. This is making claims easier for customers and allowing insurers to focus the time of their most valuable asset – their expert people – on helping customers with more complex claims that require human support.

Operating in turbulent times 

However, the turbulent period of change is by no means over, and 2022 has brought about new challenges as our industry continues to adapt to the changing world around us.

These new challenges don’t sit in isolation either. Rising inflation, the Russo-Ukrainian War, soaring energy prices, material and component shortages, and increased second-hand car prices have formed an interconnected new web within which claims now operates.

Inflation is particularly difficult to predict and, as we’ve seen with recent events in Downing Street, the events of a single day can send the markets spinning.”

Inflation is particularly difficult to predict and, as we’ve seen with recent events in Downing Street, the events of a single day can send the markets spinning.

Businesses of all types are operating in a time when their plans can be hit by a giant spanner flying into the works without so much as a moment’s notice.

Those that thrive will be the ones who acknowledge the spanner, and are brave enough to pivot their approach in light of the new world they’re in.

Doing things differently

We’ve seen some great examples of insurers doing things differently in 2022.

The launch of Build Back Better, a new scheme which sees insurers install flood resilience measures when dealing with flood claims, proves that the industry has recognised the impact of climate change and is willing to adapt.

While each claim may cost slightly more to settle now, the scheme will reduce indemnity spend in the long term, while making homes more resilient to the impact of climate change.

Green car parts are also becoming more widely used across the industry. At a time when access to new parts can be difficult, these could play an important role in helping insurers cut down key-to-key times and push down the cost of claims.

It’s true that we’re living in difficult, turbulent times. But it’s clear to see that already, this is encouraging the insurance industry to make positive changes, which are helping us to become more efficient, more caring and more sustainable.

As innovation and adaptability will be key, the one thing we can’t do is stand still.