Hippo Insurance: Finding the balance between people & processes

Darin McCarthy is building a claims team that embraces new technology and the personal touch for claimants.

“We’re looking for people who are adventurous and willing to make their mark in the industry,” says McCarthy. (Photo: Wikimedia)

While insurance has been around for centuries in some form, there are several newcomers to the space that are bringing fresh approaches to coverage, sales and claims processing. One of those leaders is Hippo Insurance, which now offers homeowners coverage in 33 states across the U.S.

Darin McCarthy. (Photo: Hippo Insurance)

Darin McCarthy is the vice president of claims at Hippo and has spent 25 years in the insurance industry. He finds that that the emergence of the InsurTech industry is really pushing the industry forward, particularly in terms of customer interaction. “We’re insuring people’s most valuable assets,” shares McCarthy. “While efficiency is key, striking a balance between technology and the human touch is also important. We are high-tech and high-touch. And that’s why our claims department has real people on the line and our concierge team is the approach we’re taking in the industry.”

Carrier priorities

Insurers have had to pivot quickly over the last 12 months, but the issues they face have not changed significantly. McCarthy believes that talent acquisition is still a priority for carriers. “Great people provide great service and we have a dynamic group of individuals. It’s been exciting to see us go from 22 to 50 people in our claims department and we’re still growing.”

Complementing their talent acquisitions, McCarthy says that having effective systems is also vital to efficient claims handling. “You have to give the great people you hire great systems to work with.”

A third area he thinks insurers should be focusing on is understanding their own company’s appetite for change. “If all of the stakeholders are not on board it will be a definite struggle. We have an internal alignment that is pretty remarkable in the industry. We’ve remained incredibly nimble throughout the pandemic. We’ve adopted a lot of tools and technologies for our team to provide the best possible experience in claims.”

Synergies in partnerships

Finding the right partner to support and augment a carrier’s claims efforts is also an important aspect of any company’s success. McCarthy sees the value technology companies provide. “We work with InsurTechs like Claimatic and Five Sigma as well as legacy carriers for the benefit of our customers. Partnerships can yield quick wins and enhancements to our claims operations.”

To this end, Hippo has just announced partnerships with Claimatic and Five Sigma that will significantly affect how quickly they are able to process claims and further strengthen the level of service the company provides to policyholders. Hippo’s claims team, as well as its claims concierge service, will be able to automate the pairing process for claimants and adjusters with service providers such as contractors and repair networks, expediting both the claims and restoration process.

Opportunities on the horizon

As more non-traditional insurers like Lemonade and Hippo enter the industry, they are challenging some conventional assumptions about insurance. “It takes courage to think strategically and think broadly across the board,” finds McCarthy. “We’ve turned traditional thinking on its ear. Why can’t we partner with tech companies and change how things are done? We aren’t reinventing the wheel here. Look at companies like Airbnb, Uber and Amazon – we’re reimagining homeownership through the lens of the customer and continuing to layer it in new ways.” Hippo is utilizing its smart homes program and Hippo Home Care to help policyholders be more proactive in maintaining their homes and reduce the risk of claims.

Insurance continues to provide numerous benefits for claims professionals and McCarthy stresses the importance of having a solid technical background. “You need to know how to navigate around claims and you need to have strong communication skills. Amazing communicators have to be the backbone of any successful claims group. You need to be a ‘black belt’ in communications.”

He appreciates that claims requires a wide skill set from those who chose it as a career. “We’re looking for people who are adventurous and willing to make their mark in the industry. It hasn’t always been a desirable industry for young people, but with technology looking at the industry in new ways, we’re tapping into these opportunities. It’s a great industry and a great time to get into it.”

Related:

Commercial underwriting: Caught between the law and an IoT device

Hippo agrees to go public, merges with SPAC