Shifting Landscape of Insurance: Major Factors & Cost Reduction Strategies
The insurance industry is dynamic, constantly evolving due to factors like claim cost reduction, new technology, automation consequences, and more. Insurers are adapting to challenges by innovating to enhance customer satisfaction and workforce development. Despite efforts to reduce claim costs, the industry faces challenges such as rising claim expenses. Stay informed about the changing insurance landscape and learn strategies for cost reduction in this shifting environment.
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ASIAN CLAIMS CONVENTION ASIAN CLAIMS CONVENTION NUSA DUA, BALI NUSA DUA, BALI 11 11- -12 12- -13 APRIL 2018 13 APRIL 2018 Gabriel Magyari Director Hayden Lloyds and Associates
HOW TO HOW TO ADAPT THE LOSS ADJUST ADAPT THE LOSS ADJUSTMENT SHIFTING LANDSCAPE OF INSURANCE SHIFTING LANDSCAPE OF INSURANCE MENT TO THE TO THE
THE SHIFTING LANDSCAPE OF INSURANCE AND CLAIMS THE SHIFTING LANDSCAPE OF INSURANCE AND CLAIMS WHO HOLDS THE TREASURY S KEY OF THE INSURERS?
THE INSURANCE INDUSTRY IS A VERY DYNAMIC SECTOR OF THE ECONOMY THE INSURANCE INDUSTRY IS A VERY DYNAMIC SECTOR OF THE ECONOMY CONSTANTLY GOING THROUGH INNOVATIVE CHANGES CONSTANTLY GOING THROUGH INNOVATIVE CHANGES THESE CHANGES ARE MAINLY INFLUENCED BY THE FOLLOWING MAJOR THESE CHANGES ARE MAINLY INFLUENCED BY THE FOLLOWING MAJOR FACTORS; FACTORS;
WHAT IS WHAT IS THE THEMAJOR FACTORS MAJOR FACTORS 1. CLAIM COST REDUCTION BY INSURERS 1. CLAIM COST REDUCTION BY INSURERS 2. NEW TECHNOLOG 2. NEW TECHNOLOGY Y 3. CONSEQUENCE OF AUTOMATION 3. CONSEQUENCE OF AUTOMATION 4. CUSTOMER SATISFACTION 4. CUSTOMER SATISFACTION 5. THE NEW DEVELOPING WORKFORCE 5. THE NEW DEVELOPING WORKFORCE 6. NEW CHALLENGES, PLAYERS AT INSURANCE 6. NEW CHALLENGES, PLAYERS AT INSURANCE
1. 1. CLAIM COST REDUCTION BY CLAIM COST REDUCTION BY INSURERS INSURERS
1. 1. CLAIM COST REDUCTION BY INSURERS CLAIM COST REDUCTION BY INSURERS INSURERS ARE CONTINUALLY LOOKING FOR WAYS TO REDUCE INSURERS ARE CONTINUALLY LOOKING FOR WAYS TO REDUCE CLAIM COSTS DUE TO: CLAIM COSTS DUE TO: THIS IS THE ONLY VARIABLE THIS IS THE ONLY VARIABLE COST THAT AFFECTS THE COST THAT AFFECTS THE
BUT BUT THE COST OF CLAIMS ARE RISING THE COST OF CLAIMS ARE RISING (WTC 911)
BUT BUT THE COST OF CLAIMS ARE RISING. THE COST OF CLAIMS ARE RISING. (Costa Concordia)
BUT BUT THE COST OF CLAIMS ARE RISING. THE COST OF CLAIMS ARE RISING. (Dallas lightening)
BUT BUT THE COST OF CLAIMS ARE RISING. THE COST OF CLAIMS ARE RISING. (Fukushima 311) (Cargo claim near New Zealand)
BUT BUT THE COST OF CLAIMS ARE RISING. THE COST OF CLAIMS ARE RISING. (Papua New Guinea 2018)
BUT BUT THE COST OF CLAIMS ARE RISING. THE COST OF CLAIMS ARE RISING. (China)
THE NUMBER OF THE NUMBER OF BIG BIG CLAIMS ARE INCREASING CLAIMS ARE INCREASING(USA) (USA)
THE NUMBER OF THE NUMBER OF BIG BIG CLAIMS ARE INCREASING CLAIMS ARE INCREASING (WORLDVIDE) (WORLDVIDE)
1. CLAIM COST REDUCTION BY INSURERS 1. CLAIM COST REDUCTION BY INSURERS EVERY INSURER KNOWS THAT EVERY INSURER KNOWS THAT THE LONGER A CLAIM THE LONGER A CLAIM SETTLEMENT TAKES THE SETTLEMENT TAKES THE MORE COSTLY COSTLY IT GETS. IT GETS. MORE
1. 1. CLAIM COST REDUCTION BY INSURERS CLAIM COST REDUCTION BY INSURERS CONTINUAL MEETINGS AND CONTINUAL MEETINGS AND ACQUISITIONS OF ACQUISITIONS OF INSURANCE COMPANIES INSURANCE COMPANIES INCLUDING MERGING OF INCLUDING MERGING OF CLAIM DEPARTMENTS. CLAIM DEPARTMENTS.
2. 2. THE EMERGENCE OF NEW THE EMERGENCE OF NEW TECHNOLOGIES TECHNOLOGIES
2. THE EMERGENCE OF NEW TECHNOLOGIES 2. THE EMERGENCE OF NEW TECHNOLOGIES CLAIM SOFTWARE PACKAGES CLAIM SOFTWARE PACKAGES THAT STREAMLINE THE UNDERWRITING STREAMLINE THE UNDERWRITING AND CLAIM PROCESSES. AND CLAIM PROCESSES. THAT THIS TECHNOLOGY ENABLED MORE THIS TECHNOLOGY ENABLED MORE SPECIALISATION, SPECIALISATION, REDUCE TIME REDUCE TIME AND INCREASED THE EFFECIENCY INCREASED THE EFFECIENCY.. AND THE ADMINISTRATIVE SECTION OF CLAIMS ARE REDUCED AND FOCUS THE ADMINISTRATIVE SECTION OF CLAIMS ARE REDUCED AND FOCUS IS GIVEN TO A MORE PROFESSIONAL CLAIMS ENVIRONMENT. IS GIVEN TO A MORE PROFESSIONAL CLAIMS ENVIRONMENT.
2. THE EMERGENCE OF NEW TECHNOLOGIES 2. THE EMERGENCE OF NEW TECHNOLOGIES NEW INNOVATIVE TOOLS FOR ONSITE CLAIM ASSESMENT: DRONES
2. THE EMERGENCE OF NEW TECHNOLOGIES 2. THE EMERGENCE OF NEW TECHNOLOGIES NEW INNOVATIVE TOOLS FOR ONSITE CLAIM ASSESMENT: APPS FOR THE ONSITE REPORTS AND IMMEDIATE UPLOAD TO THE CLAIM MANAGEMENT VIA INTERNET
3. 3. CONSEQUENCE OF CONSEQUENCE OF AUTOMATION AUTOMATION
3. CONSEQUENCE OF AUTOMATION 3. CONSEQUENCE OF AUTOMATION MORE DATA REPORT MORE DATA REPORT ANALYSIS ARE ANALYSIS ARE AVAILABLE TO AVAILABLE TO DETERMINE THE DETERMINE THE OUTCOME OF THE OUTCOME OF THE CLAIMS. CLAIMS.
3. CONSEQUENCE OF AUTOMATION 3. CONSEQUENCE OF AUTOMATION THE RELIANCE ON EXPERT SPECIALIST THE RELIANCE ON EXPERT SPECIALIST CLAIMS STAFF INCREASED. CLAIMS STAFF INCREASED. THE CLAIMS PROCESS CAN BE BROKEN THE CLAIMS PROCESS CAN BE BROKEN UP AND GIVEN TO VARIOUS STAFF UP AND GIVEN TO VARIOUS STAFF SIMULTANEOUSLY AND SELECTIVELY SIMULTANEOUSLY AND SELECTIVELY DEPENDING ON THE CLAIMS STAFF DEPENDING ON THE CLAIMS STAFF EXPERIENCE AND KNOWLEDGE. EXPERIENCE AND KNOWLEDGE.
3. CONSEQUENCE OF AUTOMATION 3. CONSEQUENCE OF AUTOMATION THE CLAIMS STAFF FOCUS AND THE CLAIMS STAFF FOCUS AND TRAINING WILL CHANGE. TRAINING WILL CHANGE. THEY MUST ACQUIRE NEW SKILLS THEY MUST ACQUIRE NEW SKILLS TO DEAL WITH THE NEW TO DEAL WITH THE NEW CHALLENGES. CHALLENGES.
3. CONSEQUENCE OF AUTOMATION 3. CONSEQUENCE OF AUTOMATION THE LEAP IN TECHNOLOGY THE LEAP IN TECHNOLOGY REDEFINES THE ROLE OF AN REDEFINES THE ROLE OF AN INSURANCE CAREER INSURANCE CAREER PROFESSIONAL IN PROFESSIONAL IN ATTRACTING MORE ATTRACTING MORE COLLEGE AND UNIVERSITY COLLEGE AND UNIVERSITY GRADUATES. GRADUATES.
3. CONSEQUENCE OF AUTOMATION 3. CONSEQUENCE OF AUTOMATION CONTINUALLY EVOLVING TECHNOLOGY CREATING NEW OPPORTUNITIES FOR CONTINUALLY EVOLVING TECHNOLOGY CREATING NEW OPPORTUNITIES FOR INSURANCE PROFESSIONALS TO WORK TOGETHER TO COOPERATE WITH EACH INSURANCE PROFESSIONALS TO WORK TOGETHER TO COOPERATE WITH EACH OTHER. OTHER. EXTEND THEIR HORIZON WORKING THROUGH VARIOUS TECHNOLOGY PLATFORMS EXTEND THEIR HORIZON WORKING THROUGH VARIOUS TECHNOLOGY PLATFORMS FROM UNDERWRITING ANALYSIS AND CLAIMS RESOLUTION. FROM UNDERWRITING ANALYSIS AND CLAIMS RESOLUTION.
4. 4. CUSTOMER CUSTOMER SATISFACTION SATISFACTION
4. CUSTOMER SATISFACTION 4. CUSTOMER SATISFACTION NOT ONLY THE INSURERS BUT THE NOT ONLY THE INSURERS BUT THE CUSTOMERS ARE BECOMING MORE CUSTOMERS ARE BECOMING MORE SOPHISTICATED. SOPHISTICATED. A NEW GENERATION OF A NEW GENERATION OF CUSTOMERS EMERGING WHO ARE CUSTOMERS EMERGING WHO ARE TECHNOLOGICALLY ADVANCED. TECHNOLOGICALLY ADVANCED.
4. CUSTOMER SATISFACTION 4. CUSTOMER SATISFACTION THIS CUSTOMERS HAVE HIGHER THIS CUSTOMERS HAVE HIGHER EXPECTATIONS THAN EARLIER EXPECTATIONS THAN EARLIER GENERATIONS. GENERATIONS. THEIR BEHAVIOURAL PATTERN IS THEIR BEHAVIOURAL PATTERN IS CHANGING. CHANGING. THERE IS NO BRAND LOYALTY THERE IS NO BRAND LOYALTY ANYMORE. ANYMORE.
4. CUSTOMER SATISFACTION 4. CUSTOMER SATISFACTION THESE CUSTOMERS DEMAND THESE CUSTOMERS DEMAND FAST COMMUNICATION COMMUNICATION.. FAST TRANSPARENT INFORMATION FAST CLAIMS TRANSPARENT INFORMATION FAST CLAIMS SETTLEMENT SETTLEMENT..
4. CUSTOMER SATISFACTION 4. CUSTOMER SATISFACTION CUSTOMER CENTRICITY SUDDENLY CAME TO THE FOREFRONT OF THE CUSTOMER CENTRICITY SUDDENLY CAME TO THE FOREFRONT OF THE INSURANCE INDUSTRY. INSURANCE INDUSTRY.
4. CUSTOMER SATISFACTION 4. CUSTOMER SATISFACTION THIS PROVIDES A CHALLENGE TO THE INSURANCE CLAIMS STAFF IN OBTAINING THIS PROVIDES A CHALLENGE TO THE INSURANCE CLAIMS STAFF IN OBTAINING INFORMATION FROM DIFFERENT DATABASES AND THE SMART WAY TO USE THE INFORMATION FROM DIFFERENT DATABASES AND THE SMART WAY TO USE THE INTERNET AND SOCIAL MEDIA PLATFORMS. INTERNET AND SOCIAL MEDIA PLATFORMS.
4. CUSTOMER SATISFACTION 4. CUSTOMER SATISFACTION CLAIMS PROFESSIONALS MUST DEVELOP NEW CLAIMS PROFESSIONALS MUST DEVELOP NEW SKILL SKILL SETS TO DEAL EFFECTIVELY WITH THIS SETS TO DEAL EFFECTIVELY WITH THIS NEW CLASS OF CUSTOMERS CLASS OF CUSTOMERS.. NEW CLAIMS PROFESSIONALS MUST DEVELOP BESIDES THEIR CLAIMS PROFESSIONALS MUST DEVELOP BESIDES THEIR PROFESSIONAL PROFESSIONAL PEOPLES PEOPLES SKILLS SKILLS..
5 5. . THE NEW THE NEW DEVELOPING DEVELOPING WORKFORCE WORKFORCE
5 5. THE NEW DEVELOPING WORKFORCE . THE NEW DEVELOPING WORKFORCE THE NEW GRADUATES WHO HAVE GOOD TRAINING IN THE COMPUTER AND THE NEW GRADUATES WHO HAVE GOOD TRAINING IN THE COMPUTER AND IN FIELDS RECENTLY JOINED TO MANY INSURERS IN VARIOUS CAPACITY. IN FIELDS RECENTLY JOINED TO MANY INSURERS IN VARIOUS CAPACITY. THESE PEOPLE LACK THE INSTITUTIONAL KNOWLEDGE AND THESE PEOPLE LACK THE INSTITUTIONAL KNOWLEDGE AND EXPERIENCE OF THE INSURANCE INDUSTRY. EXPERIENCE OF THE INSURANCE INDUSTRY.
5 5. THE NEW DEVELOPING WORKFORCE . THE NEW DEVELOPING WORKFORCE THE THE OLDER GENERATION OLDER GENERATION WHO CONTEMPLATES RETIREMENT THEY CONTEMPLATES RETIREMENT THEY HAVE THE INST THE INSTI ITUTIONAL TUTIONAL KNOWLEDGE EXPERIENCE EXPERIENCE.. WHO HAVE ALL AND ALL KNOWLEDGE AND
5 5. THE NEW DEVELOPING WORKFORCE . THE NEW DEVELOPING WORKFORCE TRAINING PROGRAMS FOR THE NEW TRAINING PROGRAMS FOR THE NEW RECRUITS ARE FEW AND THEY ARE A RECRUITS ARE FEW AND THEY ARE A DIFFERENT STANDARD DIFFERENT STANDARD DEPENDING ON THE COUNTRY OF TRAINING. ON THE COUNTRY OF TRAINING. DEPENDING
5 5. THE NEW DEVELOPING WORKFORCE . THE NEW DEVELOPING WORKFORCE THERE IS NO CLEAR CARRIER PATH FOR THE NEW RECRUITS IN THE INSURANCE THERE IS NO CLEAR CARRIER PATH FOR THE NEW RECRUITS IN THE INSURANCE INDUSTRY. INDUSTRY.
5 5. THE NEW DEVELOPING WORKFORCE . THE NEW DEVELOPING WORKFORCE GLOBALISATION GLOBALISATION MUST CARRIER CARRIER PATH PATH MUST MUST BE BE THE MUST BE BE ESTABLISHED ESTABLISHED TO THE NEW NEW EMPHASIS EMPHASIS IN IN OUR TO ATTRACT ATTRACT GOOD OUR INDUSTRY INDUSTRY AND GOOD TALENT TALENT.. AND A A CLEAR CLEAR
5 5. THE NEW DEVELOPING WORKFORCE . THE NEW DEVELOPING WORKFORCE THE PRE THE PRE- -RETIRED GENERATION SKILLS RETIRED GENERATION SKILLS AND EXPERIENCES MUST BE UTILISED AND AND EXPERIENCES MUST BE UTILISED AND TRAINERS TO PASS ON THEIR SKILL SETS. TRAINERS TO PASS ON THEIR SKILL SETS.
5 5. THE NEW DEVELOPING WORKFORCE . THE NEW DEVELOPING WORKFORCE EACH INSURANCE PROFESSIONAL EACH INSURANCE PROFESSIONAL MUST DEVELOP MULTI MULTI- -SKILL SETS SKILL SETS UNDER THE CONTINUAL UNDER THE CONTINUAL EDUCATION PROGRAM. EDUCATION PROGRAM. MUST DEVELOP THESE SKILLS MIGHT BE THESE SKILLS MIGHT BE COMPLEMENTARY TO THEIR WORK THEIR WORK.. COMPLEMENTARY TO
5 5. THE NEW DEVELOPING WORKFORCE . THE NEW DEVELOPING WORKFORCE FUTURE CLAIMS LEADERS MUST NOT REPLACE FUTURE CLAIMS LEADERS MUST NOT REPLACE PROFESSIONALISM AND SKILLS BUT TO ADD TO IT PROFESSIONALISM AND SKILLS BUT TO ADD TO IT PEOPLE SKILLS. PEOPLE SKILLS. TECHNOLOGY SKILLS TECHNOLOGY SKILLS AND AND COMPLEMENTARY SKILLS COMPLEMENTARY SKILLS..
5 5. THE NEW DEVELOPING WORKFORCE . THE NEW DEVELOPING WORKFORCE FOR EXAMPLE: FOR EXAMPLE: FUTURE CLAIMS LEADERS SHOULD HAVE VERY GOOD FUTURE CLAIMS LEADERS SHOULD HAVE VERY GOOD COMPUTER SKILLS WITH KNOWLEDGE OF COMPUTER SKILLS WITH KNOWLEDGE OF ACCOUNTING MECHANICS. ACCOUNTING MECHANICS. ELECTRICITY CONSTRUCTION THAT COMPLEMENTS ELECTRICITY CONSTRUCTION THAT COMPLEMENTS THEIR DAILY WORK. THEIR DAILY WORK.
5 5. THE NEW DEVELOPING WORKFORCE . THE NEW DEVELOPING WORKFORCE THEY SHOULD BE ABLE TO UNDERSTAND BASIC THEY SHOULD BE ABLE TO UNDERSTAND BASIC QUESTIONS IN MECHANICAL CONSTRUCTION FIELDS. QUESTIONS IN MECHANICAL CONSTRUCTION FIELDS.
5 5. THE NEW DEVELOPING WORKFORCE . THE NEW DEVELOPING WORKFORCE AS INSURERS ARE UNDER PRESSURE TO PERFORM THEY AS INSURERS ARE UNDER PRESSURE TO PERFORM THEY PLACE PRESSURE ON THEIR SERVICE PROVIDERS. PLACE PRESSURE ON THEIR SERVICE PROVIDERS. PLACE THEM UNDER SLA PLACE THEM UNDER SLA..
6. 6. NEW CHALLENGES, PLAYERS NEW CHALLENGES, PLAYERS AT INSURANCE AT INSURANCE
6. NEW CHALLENGES, PLAYERS AT INSURANCE 6. NEW CHALLENGES, PLAYERS AT INSURANCE NEW RISK TYPES ARE HERE DRONES, ELECTRIC CARS, AND SELF- DRIVING TRAFFIC SYSTEM -TELEMETRIC INSURANCE UNDERWRITING AND PRICING -LIABILITY ISSUES FOR AUTONOMOUS DRIVES (CAR, DRONE)
6. NEW CHALLENGES, PLAYERS AT INSURANCE 6. NEW CHALLENGES, PLAYERS AT INSURANCE ADVANCED BANKING SYSTEMS vs. CRYPTO CURRENCIES CYBER HAZARD
6. NEW CHALLENGES, PLAYERS AT INSURANCE 6. NEW CHALLENGES, PLAYERS AT INSURANCE NEW INVESTORS AT THE REINSURANCE MARKET WITH HIGH PROFIT EXPECTATION Alternative reinsurance capital grew to $86 billion by the end of Q1 2017, Which are: - FUNDS, - CATASTROPHE BONDS
