INTERVIEW
Telematics for the home – connected homes – will reduce the impact and frequency of claims and some events will be eliminated altogether early stage water shut off devices being developed which will help to cut out some escape of water claims. But looking further into the future, telematics for the home – connected homes – will reduce the impact and frequency of claims and some events will be eliminated altogether. For insurers, claims will contract and so will premiums. And for the customers, their claims experience should improve as damage will be less severe and repairs should be quicker. However, even if a claim is avoided, repair work will still be required to deal with the source of the event. Whilst this looks like a threat to insurers, we see that prevention will become mainstream and insurance will be more of a contingency. In the new world of smart and connected homes, there is an opportunity for insurers to play a key role in deploying its repair network to fix the problem even if there is no ‘traditional’ claim event. Therefore, insurers will morph into risk prevention first and claims repair second. Leigh Carlton, Head of Proposition Development at Ageas has written a blog for Insurance Age which may be useful to explore this topic further: http://www.insuranceage.co.uk/ insurance-age/blog-post/2450248/putting-the-customer-at-thecore-of-connected-homes.
Q
How does regulation directly impact how Ageas deals with its customers? How does the organisation respond to regulatory requirements which may not be in the best interests of customers in practice?
A
On the whole, we do not see this as a challenge because we put the customer at the heart of our claims processes and so should the regulator. Things such as publishing General Insurance value measures may be debatable but we support initiatives which increase transparency for consumers and help them to make the appropriate choice for their insurance needs. We look forward to working with the FCA on its pilot to help make sure that any claims data published is clear, consistent, and beneficial to consumers. Given the type of data the FCA is proposing to publish, it needs to be understood that the product design will have a key influence. A claim can’t be paid if the product doesn’t make it economic, for example, a high policy excess on a small value claim. It should therefore be recognised that this comparison will not only highlight claims handling behaviours of companies, but also the content of their products and the purchase choices their customers make.
Q A
What is next for Ageas?
Our focus centres on becoming even closer to our customers, and driving new standards in this fundamental area. To support this, we will be continuing to invest in our claims capabilities to ensure Ageas remains ahead of the competition.
May 2016
Rob Smale Rob joined Ageas Insurance in 2003 having previously worked in a variety of industries and roles. Rob’s qualifications include both a degree in engineering and an MBA and it is his engineering background that has helped inform a set of operating principles known as the Ageas Claims Way. Embracing ‘Lean Service’ techniques these principles have won plaudits from customers, suppliers and peers in the industry.
Prevention will become mainstream and insurance will be more of a contingency
Modern Claims 15