winning customer loyalty through speedy claims...

4th$Educa*onal$Conference$Best$Prac*ce$for$Loss$Adjus*ng$in$South$Asia$5th$March$2014$–$Cinnamon$Grand$Hotel$

Colombo$

“Winning$Customer$Loyalty$through$Speedy$Claims$SeIlement”$

Presenter:$$$Dr$Jagath$Alwis$

Director$(Technical)/Chief$Technical$Officer$CEYLINCO$INSURANCE$PLC$

“Winning$Customer$Loyalty$through$Speedy$$Claims$SeIlement”$

$$$$$$$$$Contents$•  Introduc*on$•  Insurer’s$responsibility$at$the$*me$of$issuing$the$policy$

•  Insurer’s$responsibility$a[er$a$claim$is$reported$$•  On$the$Spot$Revolu*on$–$Motor$•  On$the$Spot$Claims$SeIlement$–$Non]Motor$•  Claims$seIlement$s$$of$a$NatCat$Event.$$•  Conclusion$$

$$

Insurance$Industry$

Insurers$

Reinsurers$

Brokers$

Agents$

Loss$Adjusters$$

Inves*gators$$

Forensic$Inves*gator

s$$

Regulators$

$

$ $ $To$seIle$Claims$– Within$the$scope$of$the$policy$– Compensate$the$actual$loss$$– Less$disputes$$– As$fast$as$possible$$

SPEED%%%%%%%THE%NAME%OF%THE%GAME%

Insurer’s$responsibility$at$the$*me$of$issuing$the$policy$

$•  Issuing$policies$in$a$language$where$the$Client$could$understand$beIer$

•  Policy$wording$without$ambiguity$$•  If$$a$risk$inspec*on$is$done,$inform$the$important$points$to$the$Client$to$improve$the$risk:$$including$the$compliance$required$

•  Deliver$the$policy$as$soon$as$possible$and$get$an$acknowledgement$$

Insurer’s$responsibility$at$the$*me$of$issuing$the$policy$

$•  Give$a$document$to$Client$simply$explaining$what$is$covered$and$not$covered$

•  Give$a$cer*fied$photocopy$of$the$Proposal$Form$to$the$Client$

•  Educate$the$Insured$regarding$the$basis$of$claims$seIlement$

•  Clear$guidance$about$claims$repor*ng$

Insurer’s$responsibility$a[er$a$claim$is$reported$$

•  Have$an$efficient$system$of$claims$recording$$$•  Advising$the$process$regarding$claims$seIlement$$to$the$Insured$•  Appoin*ng$Loss$Adjusters$/Inves*gators$$as$soon$as$possible$$•  Take$necessary$steps$$required$for$post$$loss$minimiza*on$$•  Communicate$the$documents$required$to$establish$the$loss$and$

adjust$the$claim$•  Internal$communica*on$with$other$departments$for$$claims$

reserving$$•  Loss$Advice$to$Reinsurers$if$required$•  Advice$to$NITF$•  Constantly$in$touch$with$Loss$Adjusters$and$Inves*gators$$

$

$$$$“Our$Industry$does$not$respect$tradi*ons,$its$only$$$$$$$$respect$Innova*on”$$

$Satya$Nadella$Microso[$‘s$New$CEO$

Motor$Claims$SeIlement$prior$to$“On$the$Spot”$Revolu*on$$

Tradi*onal$steps$involved$in$seIling$motor$claims$$•  Wait$at$the$site$of$the$accident$*ll$Police$Officers$visit,$and$

instruct$to$move$the$vehicle$•  Visit$Police$Sta*on$to$lodge$an$entry$•  In*mate$the$claim$to$Insurance$Company$in$wri*ng$and$

collect$claim$forms$•  Visit$Garage$to$obtain$repair$es*mate$•  Visit$Police$Sta*on$couple$of$*mes$to$obtain$the$copy$of$the$

1st$statement$•  Submit$the$claim$documents$to$the$Insurance$Company$

$$$

$

Motor$Claims$SeIlement$prior$to$“On$the$Spot”$Revolu*on$$

Tradi*onal$steps$involved$in$seIling$motor$claims$•  Wait$*ll$the$Motor$Assessor$come$and$inspect$the$vehicle$•  Assessor$forward$the$leIer$of$approval$to$the$Insurer$•  Obtain$the$leIer$of$approval$from$Insurer$•  Wait$*ll$the$Insurance$Company$obtain$the$Police$report$

direct$from$the$respec*ve$Police$Sta*on.$•  Commence$repair$•  Return$salvage$if$applicable$•  A[er$Repair$Inspec*on$(ARI)$•  Submit$Final$Bill$•  SeIlement$

“On$the$Spot”$Revolu*on$$$•  Introduced$“On$the$Spot”$claims$seIlement$in$2003$

•  Inspec*on$of$damaged$vehicles$24$hours,$all$365$days,$throughout$Sri$Lanka,$at$the$place$of$the$accident,$On$the$Spot$

$$•  Presently$ employed$ around$220$Motor$ Engineers$ through$out$ the$

country$$$

•  Dedicated$Call$Centre$with$60$$agents$$$•  Payment$of$claims$on$the$spot$by$the$motor$$engineers$who$$$$$$$$assess$the$claim.$

“On$the$Spot”$Revolu*on$

$$$$$$$$$$$$Assessors$are$equipped$with$Android$Tablets$who$$$$$$$$$$have$access$to$the$main$database$and$the$Nerve$$$$$$$$$Centre$

$$$$$$ $$SeIlement$of$claims$direct$to$customers$bank$$$$$$$$$$$$$$$$$account$or$credit$card$account$using$M]commerce$$$$$$$$$$$$$$$technology$$

$$$$$$$No$paperwork$involved$

$

BENEFITS$TO$CUSTOMERS$

•  Elimina*on$of$Police$ reports,$Repair$es*mates,$Repair$bills,$Claim$forms$and$several$visits$to$the$insurer$

•  Convenience$•  Save$*me$and$money$•  Immediate$assessment$of$the$damage$•  Ability$to$repair$the$vehicle$fast$•  Assurance$of$a$companion$at$a$*me$of$distress$$•  Other$emergency$services$$

“On$the$Spot”$Revolu*on$$

!  Benefits$to$Ceylinco$$!  Enhance$the$Customer$loyalty$!  Reten*on$of$Customers$and$cross$selling$of$other$products$

!  Product$is$pitched$as$a$premier$Motor$Insurance$product$$

!  Proper$Claims$management$–$As$a$result$$incurred$net$Motor$Claims$ra*o$is$50.2%$whereas$the$Industry$average$is$over$70%$

COMPETITION

•  Compe*tors$ too$ have$ reacted$ with$ various$ forms$ of$seIling$motor$claims$hassle$free$and$fast$

•  The$ On$ the$ spot$ claims$ assessment$ became$ a$benchmark$in$the$market$

•  The$ motor$ insurance$ market$ became$ an$ innova*ve$driven$vibrant$market$$

•  Customer$became$the$ul*mate$winner$$•  Image$ of$ the$ Industry$ enhanced$ and$ the$ loyalty$increased$

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$SPEED$$$ $ $The$Name$of$the$Game$$

$

COMPETITION$

On$the$Spot$Claims$SeIlements$of$Non]Motor$Claims$

•  A[er$market$acceptance$of$the$On$the$Spot$Motor$Claims$SeIlement,$this$was$extended$to$Non]motor$claims$as$well$

•  The$present$in$house$loss$adjus*ng$division$has$around$25$Engineers,$12$Accountants$and$5$Inves*ga*ng$Officers$

•  More$than$90%$of$the$claims$are$small$and$medium$size.$$Not$complexed$

•  Members$of$the$Loss$Adjus*ng$team$visit$the$site$of$the$claim$$immediately$upon$receiving$claim$no*fica*on$to$the$Call$Centre$$

On$the$Spot$Claims$SeIlement$of$$Non]Motor$Claims$

•  Update$the$$status$of$the$claim$on$line$to$the$‘’Nerve$Centre’’$and$collect$informa*on$as$far$as$possible$from$the$site$$$

•  Call$Centre$informs$the$addi*onal$specialists$required$depending$on$the$claim$

•  If$the$claim$is$not$complexed,$we$will$adjust$it$in$house$or$otherwise$assign$an$Independent$Loss$Adjuster$and$pass$on$the$first$hand$$informa*on$gathered$


•  In]house$team$will$co]operate$with$the$appointed$Loss$Adjustors$for$a$speedy$seIlement$

$

•  Since$visi*ng$“On$the$Spot”$$of$the$scene$of$the$incident,$we$could$gather$lot$of$informa*on$which$otherwise$would$not$have$come$to$our$knowledge$

$

•  The$worst$natural$disaster$experienced$by$the$industry$was$Tsunami$2004$$

Extent$of$Damage$due$to$Tsunami$in$Sri$Lanka$

Type of damage Number Percentage

Completely Damaged 39,692 25%

Partially damaged – unusable 11,113 7%

Partially damaged– but usable 38,105 24%

Not affected 69,861 44%

Housing%units%of%affected%areas%by%type%of%damage%

Extent$of$Damage$due$to$Tsunami$in$Sri$Lanka$

Type of damage Number Percentage

Completely Damaged 4,716 20%

Partially damaged – unusable 1,179 5%

Partially damaged – but usable 5,188 22%

Not affected 12,499 53%

Buildings%other%than%housing%units%of%affected%areas%by%type%of%damage%


•  Ceylinco$had$more$than$2000$Non]motor$claims,$more$than$90%$of$them$were$$small$and$medium$size$clams$

•  Within$7$days$we$seIled$75%$of$them$and$within$14$days$90%$of$them$using$$the$In]house$Loss$Adjustors$and$the$Staff$

•  We$are$proud$that$we$supported$them$to$come$back$$to$start$their$business$in$no$*me$

•  To$seIle$balance$claims,$we$got$the$service$of$local$Loss$Adjustors$as$well$as$overseas$Loss$Adjustors$

$$$Winners$$Don’t$do$different$things$$$$$$$$$$$They$do$things$differently$$

THANK&YOU.&Email:&&[email protected]&

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