FCA’s double whammy for UK insurance industry
The UK’s Financial Conduct Authority (FCA) has issued new rules on policy renewals and is also taking over as regulator for claims management companies (CMCs). This means claims processes are shaken up once more and margins come under further pressure. Smaller CMCs in particular have to adapt quickly to stay viable under their new regulatory regime. Can tech help quickly as pressures mount?
The new rules around renewals mean that income on the everyday, high-volume market like home and motor insurance is squeezed for insurers, at a time when claims costs remain high. Technology is helping insurers get a handle on cost and tighten the claims lifecycle, for example by making self-service more appealing to customers with the likes of E-FNoL and by reducing the need for site visits and face-to-face interviews entirely.
Using photo and video reporting as well as live recorded video calls is a cost-effective way of triaging and verifying claims at FNoL, carrying out remote investigations and automating smaller claims without opening the door to fraudsters.
The eviid technology stack pushes the use of video across the organisation, unlocking significant efficiencies early on in the lifecycle of a claim and throughout. In claims triage, a 40% reduction in claims being sent to independent investigators is not unheard of. Right at the start of a claim, eviid can shift its trajectory onto an optimal path, while unnecessary supply chain components are removed.
The eviid stack offers a number of ready-to-deploy front-end video capabilities that were built to slot into claims management systems via open APIs and are available on a software-as-a-service basis with transactional pricing (single cost per claim, utilising multiple products within) to enable:
Upload of dashcam and any other footage from policyholders/third parties/customers without hassle, via a simple link
Customers to capture and submit verifiable videos and photos or give evidence via live and recorded video call
Secure access to automatically filed footage/photos, stored in the cloud and equipped with secure, audited and compliant sharing facilities
CMCs in the regulatory spotlight
Claims management companies are similarly challenged by new rules, with new reporting requirements and a stronger emphasis on verifying claims before pursuing them. For smaller players, the cost of this additional reporting and evidencing can be a significant challenge to their viability as businesses.
Video tech can help CMCs fulfil their reporting and verification requirements cost-effectively – without drowning in paperwork. A flexible, scalable solution like eviid can be set up and used with virtually no capex, while transaction-based pricing makes it attractive for smaller players.
Why use it?
To instantly verify the authenticity of a claim and be able to prove it;
To capture and securely file a visual audit of the claim early on, for later regulatory review if required;
To reduce operating cost by making it easier to share compelling evidence with the other parties involved;
Impress and win clients proving effective use of innovation.
Video isn’t the answer to everything, but an insurance and claims sector faced with multiple, unprecedented pressures would be ill-advised to ignore it as an easy to adopt, cost-effective release valve.
Beyond reducing cost, deterring fraud and supporting efficient reporting, it’s also the foundation for better, more personal customer service. At a time when we all have come to appreciate the value of a friendly face, video goes the distance.
For a detailed look at how video can transform motor claims in particular, have a look at our latest playbook: https://www.eviid.com/playbooks