At a time when technology continues to progress at a nearly exponential rate, it's relatively common to hear the word "innovation" bandied about. Whether extolling the virtues of the latest version of a product or lauding the hottest corporate strategy or marketing campaign, there's always at least some minor upgrade, feature or tactical tweak worthy of note. But sometimes an innovation goes beyond the "nice-to-have" and delivers a real "wow" factor. In the case of Esurance and its online self-service claims experience, it definitely falls into the latter category, which is why the company was voted runner up in Insurance Networking News' 2009 INNovators awards.
Seeking to revolutionize its online claims self-service offerings, the San Francisco-based online auto insurer devised a plan to develop a customer experience that wasn't fraught with the same tedious trappings as its competitors - static forms, lack of branding and no additional services offered to the policyholder. On their end, they wished to rid themselves of rudimentary data capture, significant re-keying, manual handoffs and lack of assignments.
To this end, the insurer's claims and technology departments sat down together to brainstorm about what could be done. Eventually, they reached a consensus on enhancing the online claims experience so it would at least mirror, if not surpass, the level of service provided by their already successful call center, all while further refining the process.
"The idea was that Esurance customers are extremely Web-savvy," says Chris Holcombe, the company's claims self service manager and project manager for this enhancement, "and that they do everything online without ever needing to pick up the phone, despite having the option to do so. But at the time, there was simply a manual, one-page form that provided very little to them - both in terms of the customer experience, and from us from an efficiency standpoint. So, we felt that we could absorb more first-notice-of-loss (FNOL) claims online as opposed to having them call in, all the while providing that same level of service as the call center but with an online application."
It was at this time that Esurance turned to Innovation Group, Newton, Mass., for help with implementing their new plan. Esurance chose the services and solutions provider for its FNOL technology, which is embedded in the Web site design, and allows Esurance to maintain a consistent experience across its entire Web site. Innovation Group's solution provides flexibility for a range of different customer interactions due to its business rules capabilities, scripting engine and its ability to integrate with third parties. For example, Chicago-based CCC Information Services Inc., was also synergized with the insurer's loss reporting unit application, as well as Esurance's own E-star repair network.
"Their mentality was, 'Let's not just build something that will be a placeholder for 24 months until the insurance industry catches up with other vertical markets where self-service expectations are very high, like they are with Amazon.com,' says Greg Powers, Innovation Group's CMO and VP of sales. "'Let's do it right the first time.'"
Once all the technology was in place, Holcombe worked with the marketing group to develop the front-end look and feel of the Web site. In the end, the entire process - from the loss reporting unit application to the online application - took two years to get up and running.
ROADBLOCKS
As with any project of this magnitude, there were numerous impediments along the way. In addition to the usual worries about project management, getting buy-in from all parties involved, timelines, delivery dates and ensuring constructive communication, the biggest concern, according to Powers, was devising a customer experience that would satisfy the masses. He says the tolerance level of policyholders reporting a claim online is lower than it would be through an alternative channel, such as a call center. With call centers, he says, people are more apt to remain on the phone longer to answer questions about their claims. So they asked: How do you combine outstanding customer experience with a certain level of brevity?
"Because of the conditional reflexive questioning in the application, we've done it really well," Powers says. "Depending on their answers to specific questions, the business logic will suppress any seemingly non-relevant questions. This way, we can tailor the process so we capture just the right amount of data while still providing that 'wow' experience, and it doesn't have to take 30 minutes."
Another challenge, according to Powers, was usability. Because Esurance was introducing first-of-a-kind functionality, they wanted to ensure the system would be intuitive enough so that first-time users could utilize it without any outside support.
"Even though we provide users with a live capability to reach out online to a call center, we wanted it to be like an Amazon experience where you'd never need to," he says. "And so far we haven't had anyone reach out to the call center during that experience."
There also were improvements to be made on the carrier side. Holcombe notes that they had to completely realign their field operation's claims handling process to support the online claim-reporting model. Because the new system automatically captures more information than before, reps need additional training to help them recognize what holes require filling prior to pushing claims down the line.
REAPING THE BENEFITS
With the claims capture process now streamlined for both customers and claims handlers, Esurance began to realize other benefits in the back office. Prior to implementation of the new FNOL system, loss reporting reps used multiple applications to complete all transactions required during the FNOL process.
At any given time, Holcombe says, the loss reporting reps would have each of the claims system's application and inspection and salvage Web browsers open, so by implementing the new solution, they combined everything into one consolidated application without skipping around to multiple screens. "We've seen a positive, downward trend in overall call times as a result," he boasts.
Holcombe also says the new system has generated significant improvements in online efficiency. In the past, once policyholders filled out the one-page online form, the policy system simply created an e-mail to the loss reporting unit. Someone would then go into the general e-mail box at regular intervals to collect the forms, and would take that information, manually enter the claim into the claims system, and then route it to the claims office for assignment.
"With our new online claims system," Holcombe says, "we give the customer a claim number right up front, so we've eliminated the step of the claim going to the loss reporting unit before it goes to the claims office."
PROCLAIMING SUCCESS
Additionally, since May 2009, the first month the customer interface was available to all 50 states, Esurance has offered an inspection to policyholders 69% of the time online, and set up inspections 51% of the time. Among self-service claims that had an inspection set up during the initial report, 40% were assigned to a body shop, 28% were assigned to and scheduled with a staff appraiser and 32% were assigned to an independent appraiser. "The impact of those statistics is enormous from an expense, paid loss and customer satisfaction standpoint," says Denise Garth, VP, industry affairs for Innovation Group.
Even more impressive, according to Powers, is that Esurance has a 99%-plus customer satisfaction rating, which is a major accomplishment when conducting business online. This claims experience, he says, sets Esurance apart from their competitors, especially in the P&C space.
"Most carriers today are getting to the point where they have some sort of capability online, but you fill out a few forms and there's a script that says someone will call you back," Powers says. "We were trying to build something interactive where the policyholder would say at the end of the experience, 'I didn't expect that from my insurance company.' And I think we succeeded."
THE FUTURE
Given the overwhelming success of Esurance's new online claims system, it's only fair to wonder: What's next?
"We're looking at integrating rental capability," says Innovation Group's CMO and VP of sales, Greg Powers. "Today you can be referred to a preferred body shop, so we schedule that capability online, and if you qualify, we offer you an appointment time and you can pick the time and shop. We also utilize Google Maps so you can see a visual of the shop from a 3D standpoint. Going forward, we plan to integrate with Hertz and Enterprise rental companies so that if you have rental coverage, you'll also be able to schedule a rental at the same time."
Further down the line, he says, the company will consider how it can use the Web site to enhance emergency roadside services.
Editor's Note: In the INNovators coverage in our November/December 2009 issue, we incorrectly referred to document output automation provider Xpertdoc as Expertdoc. We regret the error.
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