Policyholder acquisition costs are rising for property and casualty (P&C) carriers at the same time that policyholders are more open than ever to switching carriers. Certainly, technology has been a contributor to this, as it has given policyholders the ability to quickly compare prices among carriers. However, there is evidence to suggest that a poor claims experience could be a significant contributor as well.
It stands to reason that carriers would do everything in their power to retain existing policyholders, especially those who have filed a claim and collected a settlement. Fortunately for P&C carriers, fraud detection solutions such as BAE Systems NetReveal® Claims Fraud solution can help avoid unnecessary hold ups in the claim process and thus enhance a policyholder’s claims experience; increasing the overall likelihood of retention.
“BAE Systems is a leader in this space with a unique position to help carriers by virtue of its long experience of tackling data intelligence issues over the course of its existence.”
Jay Sarzen, senior analyst with Aite Group’s P&C Insurance practice.
P&C carriers operate on fairly thin margins and consider themselves successful if they can manage to keep one or two cents of every premium dollar that comes in the door. So it’s reasonable that carriers would like to minimise the money spent to acquire new policyholders. That’s not easy to do in a hypercompetitive, multichannel distribution environment that requires more targeted customer acquisition activities.
One way to drive better retention is to build a better claims process for policyholders. Carriers should want to have their policyholders feel good about their settlement. Claims process nirvana is not easy to attain. Though the primary stakeholders all have a keen interest in developing a better process, they have not been able to make the process better on their own. Luckily for these stakeholders, technology vendors, software providers, and data aggregators have built solutions that can deliver enhanced communication, increased collaboration, and integration of more robust data to guide claims decisions.
BAE Systems has managed to migrate its capabilities across industries and apply them with great success. BAE Systems’ carrier clients seem pleased with the capabilities and tout how they have identified more fraud than ever by using BAE Systems’ solution. Any carrier in search of this type of capability would do well to consider BAE Systems’ insurance fraud solution.