Contract certainty and shorter service time are key

Contract certainty and shortening service time are key areas to focus on in an effort to improve the service the insurance industry offers its customers, the insurers panel told delegates at the RIMS Canada Conference in Halifax, Nova Scotia.
Richard Ward, CEO of Lloyds, commented on how surprised he was when he first entered the insurance sector in 2006 and realized that customers would accept the terms without ever having seen the contract that covers a risk.
Insurance is still able to do it on a bit of a wing and a prayer, he mused, adding that its a common practice for documentation to follow after a contract is agreed upon.
The focus should not just be on getting the contract right, but also on getting the documentation out within 30 days, Ward said.
(Here we) commit huge amounts of money without having a contract organized, Urs Uhlmann, senior vice president at Zurich Canada, said, adding that in Mexico if you dont have a policy in your hands, you dont have a contract.
Kristian Moor, executive vice president of American International Group, Inc. (AIG), agrees that contract certainty is important, but asked delegates to think about how bad we are if 30 days is really good.
That said, service can be improved by speeding up the claims process, the panel agreed.
Claims information needs to be processed in a timely and efficient manner, Ward said, noting that the promise of indemnity is an insurers essential role.
If the information is submitted electronically to a repository that anyone can access client, insurer and broker then the claims process will run more smoothly as people can watch the claim progress and money can flow more easily.
Technology creates enormous inroads and the ticket is to determine how to use technology to speed up the process, Ward suggested.
Moor agreed, but added that fixing the delays is not something that can be done alone, it needs to be an industry-wide effort.
Brian Hurley, executive vice president at FM Global agreed the industry needs to work together, getting into a production mode where it can be efficient and deliver cost effective solutions. Its really only solved by working together.