The Fleetcoach programme has won a highly commended award at the 2018 Australasian Fleet Safety Awards, held in New Zealand last week. The company was presented with the Fleet Safety Product Award which recognises products that does the most to improve fleet safety through innovation.
Tony Brand, Head of Client Development at Innovation Group, said: “This is a well–deserved win for Fleetcoach, who are a key partner in our established online driver coaching programme. They consistently demonstrate that they are at the forefront of road safety innovation and we commend them for all the work they have done in building a positive road safety culture.”
The Fleet Safety Awards is run by Brake, a national road safety charity that works to prevent road deaths and injuries and support people bereaved and injured in crashes across New Zealand.
You can find out more about Brake here, as well as road safety advice for drivers, families, teachers and road safety professionals; information on Road Safety Week; support for road crash victims; and ideas for supporting Brake.
There are mounting calls to change consumer protection laws around the handling of life and general insurance claims, with several high-profile inquiries and investigations attracting media attention to this issue. What’s the upshot for insurers?
Under the Corporations Act, claims handling for life and general insurance is largely exempt from consumer protection provisions. This means insurers’ claims-handling activities don’t have to meet the requirements of being efficient, honest or fair. All other financial services activities attract these requirements.
The consequences of this discrepancy was highlighted in news reports recently. ASIC publicly voiced its frustration after it was limited to issuing a fine of only $43,200 to a major insurer in relation to what it says were “major flaws” in the way the insurer managed claims from the 2015 Wye River bushfires.
ASIC senior executive leader Michael Saadat told a government committee: “We would have liked to have addressed the problems with the claims-handling process and that is something we weren’t able to address because of the legislation we currently have in place.”
ASIC’s push for change is, of course, set against the backdrop of several inquiries and investigations. These include the Royal Commission into the Misconduct in the Banking, Superannuation and Financial Services Industry which is currently conducting hearings and the ACCC’s inquiry into the supply of residential, contents and strata insurance in northern Australia, following direction from the Australian Government. A Parliamentary Joint Committee on Corporations and Financial Services released a report in March this year which recommended the government consider whether the insurance claims handling exemption should continue.
Of course, it’s not just the legal obligations of insurers that is in the spotlight. The proposed legal changes flow from expectations around the human and social obligations of insurers. In one news report, a federal Liberal MP accused an insurer of “deliberately low-balling quotes” to rebuild homes that were destroyed in the Wye River bushfires and “making life extremely difficult” for at least six people who lost their homes to fire on Christmas Day.
It seems likely, therefore, that change is coming. Indeed, reports suggest that the Australian Government has accepted ASIC’s recommendation to remove the insurance claims handling exemption and is waiting for the findings of the banking royal commission before moving forward.
Whether the removal of the exemption for claims handling is full or partial, the change would greatly expand ASIC’s power to regulate the insurance claims handling process. ASIC has already signalled that it is interested in improving its ability to take action on unnecessary or extensive delays in handling claims. So, it’s likely insurers will be under increased scrutiny if the exemption is removed, with regulators having more power to regularly investigate, and possibly review, claim files.
What can insurers do right now to prepare for change? For starters, they can continue to monitor the inquiries and investigations. They can also take advantage of this early opportunity to review their claims-handling practices, processes and protocols in light of the key areas the consumer protection legislation focuses on: efficiency, honesty and fairness.
Taking a “wait and see” approach is risky. While it’s clearly likely that more significant penalties for misconduct in relation to insurance claims handling will soon be on the table, risks to brand reputation and possible lawsuits exist regardless of any legislative change.
Developing consistent standards for claims timeframes, ensuring claims processes regarding products are communicated to policyholders, and better reporting to ensure transparent claims data will help insurers meet any new obligations. Customer satisfaction is at the heart of these changes and focusing on this – even if it means bringing in external resources to free up or assist internal teams – should be a priority.
Innovation Group, a global provider of business process services to the insurance, financial and automotive industries, has set up new premises in Melbourne for its Australian head office.
The move provides the company with cutting-edge facilities from which it can continue to develop and deliver enhanced services to their insurance and fleet clients. Located within the CBD on Exhibition Street, the office provides a better working environment for its employees, with space including flexible working stations for cross-team collaboration and a dedicated training suite to support the skills transfer Innovation Group uses to empower its employees, customers and partners.
Rod Wood, Managing Director, Australia at Innovation Group said:
“This new exciting space will provide our team with the collaborative and functional space required to deliver first-class solutions to our clients. With our sustainable business strategy and primary focus on our clients, Innovation Group will continue to invest in growing the value of our business through enhanced service quality.”
Innovation Group (IG) has today announced that its UK business is acquiring TCS Claims (TCS) from Endsleigh Insurance Services Ltd, and starting a strategic relationship with Endsleigh for the provision of claims handling services.
The transaction sees IG acquire the assets of Burnley-based TCS, which was established by Endsleigh in 1999. The business provides a full-service claims handling capability to a number of insurers, brokers, MGAs and fleet operators. As part of the transaction, IG will combine its extensive repair network with TCS’s claims handling expertise to create a market-leading, end-to-end claims capability. IG will also invest significantly in the technology platforms provided to clients to offer a fully integrated, digital claims journey. As part of the broader relationship announced today, IG will become the exclusive partner for Endsleigh’s future claims handling requirements. This will incorporate claims activity for a full range of motor and property perils on behalf of the broker, including student possessions, contents, block hall, landlords and travel. This builds on a longstanding relationship between IG and Endsleigh, dating back to 1999.
Tim Griffiths, Group CEO of Innovation Group, said: “This is an important development for Innovation Group’s UK business and marks our entry into the market as a fully integrated claims manager. With our extensive UK repair network and TCS’s considerable skills and expertise, we firmly believe we will be at the forefront of a rapidly developing market. As we have witnessed in other geographies, our clients are increasingly seeking an end-to-end claims capability and TCS is the perfect partner, both for our UK business and as a means of developing this capability globally. We look forward to welcoming our new colleagues to Innovation Group and to working with them as we integrate the business. Furthermore, the announcement of a long-term, strategic relationship for the management of Endsleigh’s future claims requirements is an equally significant development.”
Jeff Brinley, CEO of Endsleigh, adds: “This is a really exciting time for us and we are delighted to commence the strategic relationship with Innovation Group, to ensure we bring compelling claims propositions to our customers. This arrangement also means that all our colleagues currently working within the TCS claims operation will transfer their employment under a TUPE agreement. The acquisition by Innovation Group forms part of the announcement we made last year regarding a strategic review of our business and a transformation programme to ensure we are in the best shape to grow in core areas, together with meeting the evolving needs of our customers, insurers and partners.”
Ends.
Notes to editors
About Innovation Group
Innovation Group manages critical incidents in the car and home on behalf of the world’s leading insurers, brokers and fleet managers, together with warranty and service plan provision for many automotive manufacturers globally. Our solutions are supported by a word-class supplier network, outstanding people and sophisticated technology platforms which integrate seamlessly with clients. As a result, we reduce indemnity and operational spend, improve customer experience and provide powerful data insights to our clients.
Innovation Group employs over 3,000 people world-wide, operating from offices in the UK, France, Spain, Germany, Poland, Belgium, USA, India, South Africa and Australia. The Group serves over 1,200 clients, comprising 15 of the top 20 global general insurers and 3 of the top 5 fleet and lease management companies globally.
In December 2015, Innovation Group became a private company through an investment made by The Carlyle Group, a leading global alternative asset manager.
For more information about Innovation Group, please visit www.innovation-group.com.
About Endsleigh Insurance Services Ltd
Endsleigh Insurance Services Limited is the trusted brand for student insurance, and the only one recommended by NUS. Originally founded in 1965 to serve the student market, Endsleigh has since broadened its products and services for graduates and professionals, as well as being the preferred business insurance supplier for a variety of organisations across the education, non-for-profit, travel and property sectors.
Vehicle Value Added Products and Services: The key to keeping customers engaged
The economic landscape continues to shift, in an unpredictable manner, forcing customers to be smarter with their money. “For the vehicle industry, the result is that clients are choosing to hang onto their cars for longer periods of time before they consider trading in for something new,” says Karin Kruger, Director of Operations at Innovation Group South Africa. “This poses a new challenge for dealers. How do they keep consumers hooked for the long run during a time where every bit of loyalty counts?”
Sales aftercare is of course important in keeping clients interested in a brand. But have you ever stopped to consider the crucial role value-added products and services (VAPS) play, particularly in creating and maintaining customer engagement for years to come – to the point of a new purchase sometime in the future?
What are value-added products and services?
To put it simply, VAPS are essentially the little extras a consumer adds on to their vehicle to keep it looking and feeling like it was just driven off the showroom floor – long after the fact. It can also give them some security in that they are covered in the event of an accident or other unexpected occurrences.
Some of these additions need to be purchased along with the car from day one. There are others, however, which can be added to an insurance policy or motor plan or as standalone products beyond the car’s date of purchase.
The usual suspects
You’re probably already familiar with a variety of VAPS, like the standard car maintenance plan for instance. It gives a client peace of mind in that if they purchase a vehicle, its upkeep – services, replacing of certain wear and tear parts, and more – is something they won’t have to worry about for a certain number of years (or kilometres). It also means they’ll visit the dealer regularly, which is a golden opportunity to engage with them further.
A customer also has other common VAPS to choose from, like an extended warranty plan to cover a vehicle’s parts for longer periods of time. These extras all play their part in improving the lifecycle of a vehicle, which is exactly what today’s cash-strapped consumer is after.
Additional VAPS
The reality is that no matter how well a client looks after their vehicle, there are unknown factors and forces out there that are beyond their control. Think about chip damage to a windscreen, for example. All it takes to inflict that damage is one stray stone. Then there’s the matter of scratches and dents, both of which can find their way onto a car with seemingly minimal effort, and stray potholes that can really damage tyres and rims – crucial components that aren’t exactly cheap to replace.
Thankfully, there are certain VAPS that are designed to protect a vehicle in the event that any of the above happens. Scratch and dent, tyre and rim guard, and other kinds of cover exists to address exactly these sorts of dilemmas. Seeing as the customer of today wants extra value wherever they can find it, and to safeguard their savings in the face of uncertainty, these additional products and services can go a long way in securing their engagement.
Cover all bases
With customers keeping their cars for longer, it’s more important than ever to keep them engaged for the long run. The above are just a few examples of VAPS that can do just that. There are others to keep in mind of course, like excess buy-back, roadside assistance, and more.
“Ultimately though, all VAPS are designed to provide additional value to the consumer, which is exactly what they desire in these unclear economic times,” concludes Kruger. “Ensure you offer the right value-added products and services, and you’re sure to keep a client engaged today, and well into the future.”
Karin Kruger, Operations Director: Innovation Group South Africa
The insurance industry is in a race against time to rejuvenate their offerings to an audience whose demands are different from anything they’ve seen before. During a time where Millennials are driving business innovation, it’s important to consider what this generation’s insurance needs are if your business is going to move forward.
While traditional insurance companies are still very much relevant among an older generation, Millennials are taking more of an interest in offerings based on simplicity and personalisation. Thus, the shift towards peer-to-peer insurance companies has begun.
These companies use social technology to allow a group of like-minded people to pool their premiums together. And doesn’t it make sense for people with similar insurance needs to be grouped together? For example, the premiums of those with similar risk profiles won’t necessarily be affected by high-risk individuals because you can simply choose to exclude them from your pool if need be. Similarly, by pooling premium funds with people who know each other, there’s a greater sense of transparency. Every member knows who’s in the group, who’s filing a claim and how much money there is left in the pool.
“As Millennials are a community interested in innovative technology, they’re always keen to try something new,” says Drew Schnehage, Commercial Director at Innovation Group. “Peer-to-peer companies were able to find a gap in the market and provide this generation with something they didn’t even know they were looking for,” she adds.
Besides catering to the needs of Millennials and other future consumers, these companies’ clients are also at an advantage because their premiums are often lower than those associated with traditional insurance companies. “Peer-to-peer companies are able to lower your insurance premiums by cutting down on costs often associated with large companies,” explains Schnehage. These companies rid themselves of costs involved with spend on employees, advertising and tech expenses for example, and instead invests it in reinsurance and paying claims.
You’ll also find filing claims to be a lot easier, and pay-outs are often made in just a few minutes. Because Peer-to-peer companies are primarily digitally driven, it allows for streamlined processes that make for a better user experience that even the biggest players in the sector can’t match.
“While the insurance industry is often criticised for their lack of innovation, this move toward technology breathes new life into an age-old service.” says Schnehage. “By answering just a few questions online, you’re able to immediately receive a quote and make your payment using the same portal, which is key during a time where ease of use can make or break a business model.”
Peer-to-peer insurance has already disrupted the industry through its ability to offer better premiums and more personalised policies for the generation that thrives on convenience and value for money. While these companies are all digital, they do not cater to those who cherish relationships with insurance agents for example. It’s also a new development, so their market share is still small. Despite this, there’s still a great movement towards these innovative companies, and they’re likely here to stay.
Drew Schnehage, Commercial Director: Innovation Group South Africa
According to the Automobile Association of South Africa, there are 11.4 million registered vehicles on South Africa’s roads and between 65% and 70% of those cars are uninsured. This is alarming because although some motorists may argue that car insurance is too expensive, accidents do occur and driving without cover can have greater financial implications.
With the year having just begun, it’s as good a time as ever to review existing car insurance policies or even apply for one.“People may be looking to buy a new vehicle or maybe they’re simply looking for something more affordable on their existing premium. Regardless, there are a few key points that should always be considered before making a final decision on insurance.” says Drew Schnehage, Commercial Director at Innovation Group.
Many consumers will be looking to do just that – weighing up options and deciding what solution works best for them. If you’re one of those looking to get your 2018 off to the right start, here are some things to keep in mind:
For many, price is the most important and the deciding factor when it comes to choosing a car insurance policy. However, many forget that cost is a combination of several factors including; excess structure, additional non-standard items fitted onto a vehicle and for the savvier insurers; the amount and way a person drives.
“Know yourself and your individual situation,” says Drew. “Vehicles are the most valuable assets for some people and being without it can have serious ramifications. Does your policy provide car hire, for example? Foregoing this service may lower the cost of your insurance policy, but this may not be beneficial in the long run if you rely on your automobile to get to work or to make a living.”
These are two factors whose cost is directly determined by the other. But which is the more important one for you to focus on? – It all depends on your financial situation.
If you do have a sum of money saved up, it may be worth going for a lower premium and a more expensive excess. In the unfortunate event of an incident, you will then be able to afford to pay the necessary fee, even if it is higher than normal.
On the other hand, if your financial situation is a little less sturdy, it’s worth paying a little extra each month for your premium. This way, if you do need to make a claim at any stage, there will still be an excess to pay, but it won’t be beyond your means.
Thanks to technology, it’s now easier than ever to get a number of quotes in a matter of minutes. However, that process can still be confusing, as it tends to not include any detailed information about what exactly is being offered.
If you’re unable to work through the details yourself, a good broker should be able to assist in providing an informed and impartial decision regarding the cost of the car insurance policy and the benefits that accompany it. That being said, it’s still up to you, the consumer, to make sure there is no uncertainty around the quote and the level of cover being offered. Does it best fit your requirements?
It’s very easy to get a single estimate, one that offers a seemingly great premium with matching benefits and take it, thinking that there isn’t anything better on the market. This, though, is a mistake that should definitely be avoided. At the very least, consider getting a minimum of three quotes from a variety of reputable companies.
“The insurance space is highly competitive,“ says Drew. “Every organisation tries to differentiate their packages so that they stand out in the market. Remember, the special feature of one product may not necessarily appeal to everyone. Shop around and find the right solution that suits your specific needs.”
Market value, age of the vehicle and added extras are just a few variables insurers consider when determining their price. Driver age, vehicle storage and usage, secondary drivers and driver behaviour are considered too.
“Don’t forget about good risk management when it comes to decreasing costs” adds Drew. “Parking in secure locations (both day and night), fitting a tracking device to monitor driver behaviour and vehicle whereabouts, ensuring that the correct (depreciated) market value of the vehicle is recorded by the insurance company and more, can push down the price of your premium.”
There may not be a plan that ticks every box from A to Z, but keeping all the above points in mind will certainly help you find the one that’s best suited to whatever your personal car policy needs are. Whether you’re looking to reinsure your existing vehicle or insure a brand new one; make sure you take the time to find the perfect package and get your year off to a perfect, safe start.
The way we buy goods has changed dramatically in the last few years, and it’s only going to continue to evolve. Think about it, people really enjoy, and in some cases even rely, on the convenience of using the internet to make purchases of products like clothing and food. You can trust that they’re going to expand their horizons at some point, eventually employing the online space for big commitment purchases, like vehicles. The industry is not fully there yet in that regard, but it is well on its way.
The internet has become the go-to information source for vehicle consumers, especially in South Africa. In fact, the time each consumer in the country spends researching cars online grew to approximately 14.44 hours last year and made up 59% of the total vehicle purchasing process.
Why though? Simple, because instead of having to walk into a dealership, consumers can now browse a range of different car brands, find out about all their features, safety ratings, and specials online. On top of this, they can access reviews and competitive studies from third-party sites from the comfort of their own home, or anywhere for that matter, thanks to mobile devices.
Customers are clearly getting smarter and savvier. They want convenience, and they’ll settle for nothing less. What then, can car dealerships do to ensure that they are the ones providing it? How can they transform themselves from a traditional model into a more modern one that will appeal to clients today, and well into the future?
Convenience through automation and value
The fact that third-party car-buying services even exist should be a red flag for dealerships. The traditional purchasing process, one that entails many hours of tedious paperwork, clashes heavily with customers’ demands for convenience. Dealerships’ customer care department needs to be handling all the nitty gritty stuff in the same way these car-buying services do. That sort of functionality alone will greatly improve a client’s overall experience.
After-sales services are also becoming an increasingly more important element for dealerships to concentrate on. As belts tighten with the downward sloping economy, clients are paying closer attention to incentives that offer additional value. They’re more inclined to make a purchase that will provide perks in the long run, and it’s up to the dealer to meet them halfway with benefits beyond the initial sale.
This makes even more, sense, given the fact that clients are keeping their vehicles for longer periods of time before they go about sourcing a new one. In the United States, for example, car ownership is up to 6.5 years from the 4.3 seen back in 2006.
An online showroom
Clients today are choosing to spend a lot of time online before they even set foot in a dealership, therefore a dealer’s website should be designed to be as intuitive and appealing as possible.
Offering a client everything they need to know about their next vehicle in a virtual showroom, in an easy to digest manner, could be all the persuasion they need to visit their nearest car dealership to complete the transaction. Armed with their findings, they’ll be able to walk in and narrow down their choices to a final decision in a much shorter space of time.
Speedy service solutions
Nobody enjoys the inconvenience of having to take their car in for a service. It’s an annual affair where a client knows their entire day is going to revolve around that single activity – getting their car to a dealership, and then having to collect it much, much later. Is there no alternative solution?
Some dealerships today are offering one-hour services, where a client can conveniently pop in and out in that space of time. This sort of functionality requires a very efficient team to pull it off correctly, however.
Cars of tomorrow don’t even require a trip to a dealer for a service. Tesla, for example, runs a futuristic model where they can perform their work remotely. They simply send software updates to the vehicle, and if a mechanical change needs to be made, they go to the customer.
Embrace future technology and trends
We’ve all heard the age-old saying, “The customer is always right.” Does anybody actually know exactly what the customer wants though? With technology at the level, it is, it’s becoming much easier to answer that question. Thanks to the likes of big data, dealerships now have the means to analyse information which can highlight trends and insights. These can then be used to craft services or products tailored to a client’s wants and needs.
Virtual reality is another technology that can be utilised by dealerships for the benefit of their customers. Envision being able to visit a dealership, walk around, and look at vehicles, all from the comfort of your home. Better yet, picture being able to climb into a car virtually to take it for a spin. Granted, that experience can never replace the real deal (at least, it won’t anytime soon), but it does give a client some indication as to what they can expect from their future vehicle, all without having to leave the house.
The dealer of the future provides exceptional, modern customer service
What are auto dealerships going to look like tomorrow? Will showrooms still be vast spaces filled with an entire range of vehicles, or will they scale down into smaller stores that focus only on making the final transaction? Will they even worry about offering test-drives and services? There’s no telling.
Given existing customer practices, however, it’s clear that the focus needs to be on offering convenience and value. With technology reaching new heights, it’s up to the dealer to figure out how best to employ it, so they stay relevant in a world where brick and mortar doesn’t seem to be a priority anymore.
Drew Schnehage, Commercial Director: Innovation Group South Africa
How Insurers are Catering to the Digital Customers of the Future
Switching insurance providers has never been easier for consumers than it is in the digital age. A price comparison website can provide multiple quotes in seconds. A quick trip over to an insurer’s Facebook Page or Hellopeter profile condenses thousands of word-of-mouth customer experiences into a quick online read, and more and more advanced chatbots are an omnipresent force on practically all insurers’ websites, able to answer customer questions with no human intervention at all.
It’s safe to say that all these developments were not dreamt up by the businesses themselves – they were demanded by increasingly switched-on and digitally minded consumers, and the insurers that are excelling today (not to mention those that will thrive in the future), are those that take those demands seriously.
What was once a drawn-out process of choosing a policy and filling out forms can now be done without so much as a phone call. Consumers are always-on. They are digitally savvy, and their service-level expectations are constantly rising. Today’s top insurers are those who have adjusted their business models to match and are making use of every digital tool at their disposal to ensure a competitive edge. Here are just three ways the insurance industry is catering to the customer of the future.
Social Media
On top of being one of the most widespread advertising techniques in the industry today, social media is being used for a wide variety of functions by consumer and insurer alike. A simple inbox message or even a post comment can turn a lead into a customer if handled correctly – just as a single mismanaged negative comment from a policyholder can irreparably affect a business’s corporate image. Social media also allows for a better understanding – and therefore more effective targeting – of potential policyholders. According to Karin Kruger, Operations Director at Innovation Group, the worlds of the consumer and the insurer are becoming more blurred together by the day.
“With such a complex mix of risk and opportunity, the savvy insurer will likely be placing far more emphasis on the management of a wide array of social media channels – and it’s already happening. Research by LIMRA, the world’s largest association of life insurance and financial services companies, discovered that 93% of life insurance companies had social media programs in place.”
Smart Devices, Sensors and Wearables
It’s more than a fad. Smart watches, mobile apps and vehicle telematics are the basis of many insurers’ rewards programmes, winning customers discounts and value points for going to the gym and eating right (in the case of health insurance), as well as driving carefully in the case of vehicle insurance.
Customers, far from being wary of the amount of information their insurers are collecting about their day to day activities and movements, are scrambling to take part because of the value it offers them as well. Insurance is no longer about population averages. It’s about personalised data – and when your client database goes into the millions, only the power of digital is able to personalise risk profiles as quickly, and in as much detail, as needed. Kruger continues:
“Telematics, in particular, is providing a far more accurate picture of how customer behaviours affect insurance, and fairness is the end goal for both parties. Studies show that 67% of consumers are willing to be tracked in one way or another if it could result in a reduction of their premiums.”
Big Data and Analytics
Gone are the trusted old call centres of yesteryear. Today’s top insurers have contact centres that boast enormous data storage and computing power, all in the name of a more personalised customer experience. Modern PBX systems can route a customer’s call to exactly the right person to handle their query with no receptionist intervention necessary. Agents are able to call up a customer’s client history and risk profile at a moment’s notice and offer tailored premiums based on that data in a heartbeat. The ability to record calls and gather data about their duration and outcomes also allows insurers to better train their customer service agents for a more seamless experience, and extremely detailed reporting capabilities allow for improvements to the whole process on a month-by-month basis.
Digital technologies are helping the development of the insurance sector in the areas of speed, relevance, context, personalization and empathy. And it can only be to the consumer’s advantage that insurers are adjusting to these in order to close the gap between what customers want and what they are delivering.
Innovation Group Australia is pleased to announce the appointment of George Nitsou in the newly created role of General Manager, Claims Transformation.
George joins Innovation Group from IAG where he held a number of senior roles. In his most recent position, he delivered transformational change across the claims operation in their Satellite Division.
With over 20 years’ experience in the insurance sector, George brings with him extensive experience in customer service delivery, change management, business process improvement and claims management.
In his new role, George will be responsible for leading the development and implementation of Innovation Group’s claims strategy and exploring opportunities to maximise operational efficiency and deliver greater customer experience to our Insurance and Fleet partners.
Congratulating George on his appointment, Rod Wood, Managing Director of Innovation Group Australia, said: “We are delighted to welcome George to Innovation Group. His wealth of experience in operational management and transformation projects makes him ideally suited for this role. He will be a great addition to the senior management team and I am confident that he will make a valuable contribution to our claims operation.”
George Nitsou added: “I am excited to be joining Innovation Group at a time of transformative change. I look forward to working closely with the leadership team to further develop their already extensive claims services and build on their success.”
