The art of mixing human interaction and technology: Part two
Claims transformation should go beyond technological innovation to develop ‘exponential’ skills and teams.
Editor’s note: This is part two of an article that appeared on PropertyCasualty360 yesterday. Part one can be found here.
Breaking down the exponential claims skillset
Most of the CCOs interviewed stressed that technological and statistical enhancements are unlikely to do insurers much good if their claims units don’t integrate them productively or understand when and how to use them effectively. This puts the onus on claims professionals to expand their technical capabilities and adapt their roles to handle a higher level of work and a wider array of responsibilities. This transformation isn’t about replacing skills — it’s more about adding some and amplifying others.
Claims teams should therefore be developing exponential professionals blending elements of four distinct skillsets to provide a hybrid customer experience — both digital and in-person. Such individuals should possess a mix of business, technology, data analysis and customer management skills — able to bridge the divide sometimes separating these elements to make cognitive systems effective, seamless, and user friendly for both the claims professional and claimant.
Are insurers recruiting professionals with exponential skills?
Deloitte performed advanced text analytics on more than 100,000 detailed job descriptions advertised by various global insurers over the past five years. Our analysis showed most insurers already seeking several skillsets that would be needed in an exponential claims professional, including business acumen (such as market sensing) and customer engagement (such as relationship management and negotiation). However, we also found gaps, which if allowed to persist might inhibit the transformation of claims departments to exponential levels.
For example, under 50% of job descriptions listed the need for data analysis skills. While all claims professionals won’t have to be full-fledged data scientists, most will likely be required to have a working knowledge of the field to take advantage of all the new information at their disposal and be able to communicate the implications to stakeholders. Many also should be able to help data scientists incorporate the specifics of how the claims process works into their algorithmic systems.
In addition, only 10% or fewer insurer job descriptions indicated the need for people able to handle emerging technologies such as artificial intelligence and various types of automation. While not all claims professionals need to be fluent about every new technology, they likely should be familiar with how most of them work so they may deploy them properly and double check outcomes.
These gaps could indicate a disconnect between what insurer recruiting departments think they should still be advertising to fill legacy positions versus the types of skills needed for the more exponential roles adjusters and managers will actually be expected to fill going forward.
What are the key components of the claims transformation journey?
There may be no “magic formula” for exponential claims transformations since carriers should take customized approaches based on their line of business and customer segment. However, to support a smooth transition, insurers should develop a comprehensive strategy to incorporate the latest technologies and data streams without losing a human connection with clients.
This will likely be an ongoing journey with several interconnected and interdependent parts, covering re-architecting of the work claims professionals do, revamping the capabilities of the claims workforce, as well as adapting how claims teams are organized and deployed (see figure 2).
This tripart strategic game plan should be tied closely to recruitment and training efforts so insurers can either acquire and/or develop the necessary skill sets for an exponential claims transformation. Roles and responsibilities may also need to be reassigned or redesigned so that staff and technology-driven elements of claims management complement one another, allowing team members to focus on higher-level duties while leaving room for ongoing personal engagement with customers when necessary.
Adaptability will be crucial. Claims professionals can’t afford to think in a static way as the evolution in systems, processes, and tools accelerates to keep up with intensifying competition and rising customer expectations.
Michael Cline (mcline@deloitte.com) and Kedar Kamalapurkar (kkamalapurkar@deloitte.com) are managing directors at Deloitte Consulting LLP, leading Deloitte’s insurance claims practice. Sam J. Friedman (samfriedman@deloitte.com) is insurance research leader at the Deloitte Center for Financial Services.
This piece is published with permission from Deloitte. See www.deloitte.com/about to learn more about Deloitte’s global network of member firms. (For more details about the challenges facing insurance company chief claims officers in implementing transformations and suggestions on how they might be overcome, see Deloitte’s full report, “Preserving the human touch in insurance claims transformations: How exponential claims professionals can balance automation and personalized customer service.”)