Customer Success Manager @ in4mo Solera
Published on February 15, 2023 | 3 min read
I think we can all agree solving one problem via a supplier seems a straightforward process. As we dig deeper into the process we recognise the secondary concerns mean that adding a supplier presents more challenges than is initially evident. In SAP’s article, “Insurers Build Success by Digitalizing Vendor Performance Management”, they describe the process as “…a bit like playing Whack-A-Mole…”.
There are huge benefits to creating a supplier network for Property Insurers. The management of a network is an investment that is worth the rewards. In this series of articles we’ve acknowledged that different regions in the world operate to complement the local market. For those that are considering their organisation, have already begun the process, or own a fully developed network you will recognise that networks aren’t just necessarily for repairs but spread across a number of departments that contribute to claims running efficiently.
Insurers can now consider how their network can be segmented into different aspects of the claim, or their propositions. Networks can operate in different structures, and be segmented appropriately, but it is important to think about the potential needs from start to finish of the process.
Those who can respond immediately to FNOL requirements are likely to operate in the same manner as repairers. Within the group of repairers that Insurers will curate it is likely they will seek to include specialists for certain claims, or aspects of claims. For some of those repairers, it is feasible to consider they may also be included in a Major Loss Team (MLT), or for a select group of repairers dealing with High Net Worth (HNW) customers. In addition to this Insurers will look for suppliers who can help them with contents, alternative accommodation, inspections, and invoice validation.
As a customer who is curating this network, what do the Insurers benefit from? Well the obvious answer is cost, but just like our first reflection if you dig further you find other benefits too:
- Warranties for work/performance/service
- Transparency of repairs – cost/time/quality/content
- Service Level Agreements (SLA’s)
- Project Management (PM) facilitation
- Sustainability contributions
For the ultimate customer, the insured, they see a seamless operation that has responded to them and reinstated them back to the position they were before the claim. Customer satisfaction is accomplished, and the insurers reputation spreads. This is the objective for all Insurers. To maintain that level of performance there is a continuous cycle insurers will operate within to deliver this repeatedly. Access to performance data is integral to making this easier for Vendor Managers, and the interactions they’ll have with suppliers.
When we consider the cornerstones of required data we should consider measuring around these headlines:
- Customer satisfaction
By having access to the data insurers can begin to analyse the performance of their supplier network. This will differ dependant on the priorities of each Insurer but there will be a number of KPI’s that will resonate with all Insurers that focus on the customer experience. These will primarily concentrate on response times to contact Policy Holders, processing time throughout the claim, and the cost management aspect.
Insurers will then consider drilling down further into the data to understand the costs better by measuring regional differences, material costs and labour time for different specialists. Leakage, savings and fraud are all aspects of cost that are monitored without fail. Equally they’ll want to start thinking about how to improve the process efficiency by using the data to strategically improve their set-up.
All of this against a backdrop of how to perform in a sustainable, and responsible way. This is another level of challenge that Insurers need to tackle. Data to support this is imperative as a way of demonstrating to customers that they are socially conscious and have an appetite to contribute to the challenges we as a society are facing.
Having a repairer network is not a prerequisite for an insurer. It is however a huge benefit that curated correctly, nurtured and managed with the right tools insurers can deliver transparency and better experiences to policyholders whilst focussing on more complex claims and developing for the future.
If you’re interested in understanding how in4mo can compliment you’re existing process then please reach out to us.