PURE Insurance's Derek Zahn discusses the claims experience
Personalizing the claims experience is one of the primary opportunities available to insurers.
During his 25 years in the insurance industry, Derek Zahn has focused on overseas claims operations and catastrophe response and worked for several major insurers before joining PURE Insurance, where he is senior vice president and chief claims officer. Previously, he worked at AIG, Farmers, Zurich and Maryland Casualty Insurance.
Zahn enjoys spending time with his wife and two children when he’s not working. “We’re a family that loves the outdoors. We love to go to the beach, hike and camp,” he shares. “One of our favorite places to go is Joshua Tree.” And, being an avid golfer, he likes to get to the course as often as possible.
Finding opportunities
As the insurance industry continues to evolve to meet new challenges, Zahn sees the personalization of the claims experience as one of the primary opportunities for insurers. “Particularly in the high-net-worth space, policyholders expect a service experience that is customized to their personal preferences and easy to navigate.” He shares that PURE keeps information on their members to understand their preferences before, during and after a claim.
“We know their preferred communication methods, how they like to be paid, and what contractors or repair shops they favor,” says Zahn. Leveraging this information helps the company to support members in a meaningful way during a very difficult period.
The pandemic created some changes to the claims process for insurers, particularly the ownership of the supply chain. Zahn explains that previously, “insurers would cut the check for the claim, and then the materials and labor were owned elsewhere. Now, whether it’s a vehicle or home repair, PURE is owning the entirety of the supply chain communications.”
The result has been a better experience for their members because the company can streamline the process and better manage the quality and timeframe for the work.
Rising to the challenge
Zahn believes that the industry will continue to experience labor shortages, supply chain issues and a hard market over the next few years. “The auto industry tends to be a good indicator of what’s to come for the homeowner’s industry as it relates to supply chain and labor trends. In the past few years, we first saw labor shortages make it challenging to complete auto repairs. This then flowed over to the homeowner’s industry, especially following catastrophic events. Cost containment becomes a real issue when there are not enough providers to do the work in a timely way.”
Another challenge for insurers is coverage adequacy in a hard market. “Higher rates are causing people to cut coverages in order to reduce the cost of their insurance,” he says. “This is putting more pressure on insurers when coverage is not available or not sufficient to cover a loss.”
It’s about the people
Insurance is a business of relationships and Zahn finds working with their members is one of the most rewarding parts of the job, particularly when it comes to their claims. “I’ve had the opportunity to build lasting relationships with members even outside of the claims process. I’ve had members call me for advice amid catastrophic storms because they know PURE is there to help. Working closely with our members and being a resource to them is extremely rewarding and one of the greatest benefits of working in the industry.”
No one succeeds on their own and Zahn reveals that Brian Murphy, a retired chief claims officer at Farmers gave him some of the best advice of his career, “Always be curious and have the courage to ask the questions that no one else wants to ask. It’s guided me throughout my career.”
Patricia L. Harman (pharman@alm.com) is editor in chief of the Claims Magazine and the PC360 Group.
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