In the highly competitive property and casualty insurance sector, exceptional service and efficient, cost-effective claims-processing capabilities set leaders apart. Digital technologies—and, specifically, cloud platforms—are increasingly recognized as critical enablers of a world-class claim's organization. In fact, more than two-thirds of insurers have assessed how they can move their legacy apps, including claims, to the cloud.
Yet, most insurance providers are still hesitant to make the move. Strict regulations, perceived security threats, and the burden of legacy claims systems are some of the deterring factors. For AXA, the largest insurer in the Belgian market, the potential benefits of a cloud migration outweighed the risks. In fact, the company saw moving its claims function to the cloud as a fundamental element of its strategic growth plan, which focused on, among other things, simplifying the customer experience and accelerating operating efficiencies.
To improve its claims capabilities, AXA implemented the Guidewire ClaimCenter claims management system. This industry-leading package application automates end-to-end claims-related workflows significantly boosting the company’s claims performance.
AXA and Accenture developed a digital vision and roadmap for a re-imagined claims function and Guidewire ClaimCenter was the centerpiece. The team rolled out the new system in a phased approach, starting with civil liability, followed by the motor and property lines of business.
As AXA and Accenture were managing the Guidewire implementation, the insurer began contemplating the potential value of migrating its new claims system to the public cloud. The company believed such a move would not only enable even more automation of time-consuming manual claims tasks, but also allow the company to scale its claims capabilities up and down as conditions warranted. Most importantly, AXA was confident that the public cloud platform Amazon Web Services (AWS) would deliver greater agility and cost controls, which, in turn, would enable AXA to pursue new opportunities to better meet the needs of its brokers, agents, service providers and 1.3 million customers.
AXA and Accenture completed the migration and set up of the new civil liability, motor and property claims capabilities to the AWS architecture in just 9 months.
The transition to the AWS architecture—which included 14 environments, 15 applications, 50+ batch pipelines, and 20+ operational dashboards—was expected to take 12 months but was completed in just 9.
In more than 90% of all cases, coverage and insurer intervention is confirmed to the client within four hours, and 40% of those confirmations are issued instantly, with no handler intervention.
20% of the full claims volume is now handled via straight-through-processing. Loss ratios have been kept under control by improving both the fraud detection rate and the recovery rate by 2%.
A valuable difference
Next-generation claims capability
AXA’s digital claims transformation program has created a new and highly responsive claims experience for customers. New client-centric innovations make the claims-handling process seamless and convenient. The self-service portals, for example, have not only streamlined customer and broker services with AI and automation, but also helped AXA accelerate its First Notice of Loss (FNOL) claims filings. Customers can now confirm coverage and see their settlements in seconds—not days.
Automated features and more than 100 intuitive application programming interfaces (APIs) in production also translate into faster claims registration and settlement times. More than 40% of all claims are now declared via the digital FNOL channel, which is accessible to customers, brokers and fleet service providers, alike. Coverage limits, deductibles and repair service confirmations, and even accident liability are visible almost immediately.
In addition to improved customer service, the new cloud environment has introduced a new level of agility and cost transparency. The IT organization can now calculate the cost of claims from end to end—something that was not possible in the legacy fixed-cost environment. With this heightened visibility, AXA can better manage its liabilities and make better decisions on a variety of issues—from how to further improve customer service to how to better manage its carbon footprint.
AXA and Accenture have created a next-generation claims capability—one that better one that better meets customers’ needs and better supports AXA’s vision for growth.
Speed is a critical benefit of the new digital solution. AXA can provision new computing environments, as needed, in just minutes, not months. IT capacity now meets IT demand.