[Editor’s note: This item is excerpted from LexisNexis’ Future of Claims 2021 Report. For the full report,
While telematics is still underutilized, interest from consumers is increasing. Interestingly, the same demographic groups who are most comfortable with technology and most welcoming to self-service options, including the virtual claims process, are those who show the most interest in telematics adoption.
After learning how telematics can be applied to the claims process, 34% of our consumer respondents said they were likely to participate in a telematics-based program for use in claims processing, compared to only 25% prior to understanding the potential benefits (e.g., identification of vehicle location, notification and dispatch of roadside assistance or reduction in claim processing time). This is a nine-percentage point increase from two years ago.
Many consumer respondents believe that their future driving patterns will not increase once the virus is under control for such activities as driving to work (58%) and shopping or running errands (45%) — essentially making these COVID-19 driving behaviors the “new normal.” Yet others think differently, and in some cases believe their driving will increase. What will actually take place with their actual behavior remains to be seen. We are tracking driving patterns so the data may prove otherwise. Either way, given how driving patterns changed so significantly during the pandemic, impacting both claims activity and driving violation types, there is an opportunity here for carriers to further educate consumers about the benefits of telematics during the claims process. Connected car data that is delivered to their insurers makes it both seamless and easier for consumers to understand and easier for the carrier to assess behavior and claims.
Threaded throughout our claims research is the consumer desire for an intermixing of virtual and self-service with human adjuster interaction — a hybrid claims processing model. In our 2019 report, we highlighted the importance of blending empathy with automation. No matter how great the technology is, consumers still want a human touch when they need it. Our current research affirms this preference. Consumers appreciate the convenience of online, self-service virtual processes, but when they want to talk to a human, nothing else can substitute — not even the most personable bot. Having access to a representative dramatically increases consumer comfort levels with automated claims processes across every group, and especially for Baby Boomers. Channeling human behavior at its core, comfort level increases even more substantially among those who’ve recently submitted a claim.
Interestingly, technology is enabling a more human touch by opening convenient channels of communication. More than half of the carriers interviewed are currently using a Text/SMS solution at FNOL to allow their customers to easily activate a claim and upload photos, with another one-third expressing interest in implementing a Text/SMS solution. In addition to online chat and insurer apps, Text/SMS is also becoming a preferred channel for claimants and adjusters to communicate with each other throughout the claims workflow. The acceptance of Text/SMS seems to be universal across generational groups, which suggests that the acceptance of virtual claims processes might not be as generationally limited as stereotypes may suggest.
