Codan launches uniform and fully automated self-service for all types of claims
The new First-Notice-Of-Loss solution delivers fast turnaround on virtually all types of claims. The project was completed in four months with a return on investment within 12 months.
Significant increase in digital claim requests
Codan has offered customers the opportunity to file claims through its website for years. What the customers couldn’t see was that the company’s employees then processed all the claims manually, including re-entering the information provided into other IT systems.
With a near quadrupling in the number of digital claims filings in just five years, the manual post-processing effort required more and more staff whose services were not visible to the customer and where re-entering the information that had already been provided did not add any value. With the FNOL project, Codan has taken the final step in connecting all their IT-systems.
To ensure customers receive a consistent, positive experience across all claim types, transparency in case processing and a quick resolution, Codan decided to expand their cloud-based claims system, by involving Scalepoint, with functionality that could provide full automation of the processes for all insurance products.
“We have automated claims processing, to the extent that our customers can have their cases resolved immediately upon filing. In this way, the replacement for a damaged mobile phone can be on its way a few minutes after the claim has been filed, or an appointment can be made immediately at an auto workshop that can fix the dent in the car,” explains Henrik Bundgaard, Claims Director, Codan.”
With the automation of claims management, the FNOL project has freed-up employees who have instead been transferred to support faster processing of more complicated claims, to service the customers who continue to file their claims by phone and to continuously improve processes and customer experience.
“The proportion of customers who prefer self-service via the web and apps will increase further,” predicts Henrik Bundgaard. “We want to meet this trend and at the same time ensure that as many cases as possible can be completed quickly and to the customer’s full satisfaction. With our new FNOL platform, we are well prepared for that journey.”
How the online self-service solution works
When the customer logs on to Codan’s self-service page with her NemID (the national digital signature app used in Denmark) or in some other way, she chooses the type of claim to which the filing relates. Scalepoint’s FNOL now connects to Codan’s insurance policy system (from Tia Technology), so that the coverage can be automatically verified based on the information provided.
Applying the business logic defined by Codan, the FNOL solution can, in most cases, determine the coverage on the spot, and the Scalepoint Core Claims Management System immediately initiates the process of claim fulfilment. The customer is directed to the service provider who is to repair the damage. Alternatively, the customer will be directed to an e-commerce platform where a replacement product can be purchased, or a cash compensation can be transferred to the customer’s bank account immediately.
The claims that are reported via Falck (domestic emergency service), SOS (international emergency service), or sent by the customer’s auto workshop via the Danish insurance companies’ integrated claims assessment system, Forsi (a national claims assessment service for cars), are also handled by the FNOL solution. In parallel with the automatic treatment of the claims, checks are made for fraud. Recourse is automatically created against a possible third-party’s insurance company.
With the new solution from Scalepoint, the filing and coverage validation of the claims are now handled without any manual input, and they are completed immediately.
From start to finish in just four months
Completing the FNOL project in just four months was made possible mainly by two factors. First, Codan chose to use an add-on module for their current cloud-based and configurable Scalepoint Core Claims Management Solution, the implementation of which did not require any investments in infrastructure or additional employment of scarce IT resources. Secondly, they ran the project using an agile development method, where requirements and ideas could be quickly translated into testable solutions.
“After very thorough investigations, we decided years ago to base our claims handling on a configurable SaaS system (Software-as-a-Service). That really benefits us now,” explains Henrik Bundgaard. “This means that we have direct control over the business logic and can handle the vast majority of system changes in the claims department. There is no need for building an IT infrastructure, and we seldom have to ask for support from our IT department’s scarce resources.”
Contributing to the rapid implementation is the fact that Codan already uses the Scalepoint Core Claims Management System and the ClaimShop Claims Inventory System, which is integrated with the policy management system and the customer database. In addition, Codan and Scalepoint have been working according to the same agile implementation concept for some time and have therefore achieved considerable routine.
Why the choice went with Scalepoint’s solution for online claims processing
There were many ways Codan could have achieved its business goals. The alternatives were also carefully researched, reviewed, and evaluated before the final solution blueprint was chosen and a vendor selected.
Henrik Bundgaard says, “With Scalepoint’s SaaS solution, we had the opportunity, with one and the same system, in a short time to create a uniform customer experience across all products. This now means that we are moving very fast and can scale effortlessly.”
The project’s rapid payback is calculated solely based on the direct reductions in manpower required to handle the digital claims administration in the new system. The freed-up resources were immediately reallocated to other tasks that create more value for both customers and Codan.
“We are constantly looking for opportunities to reduce what we call pure administration,” says Henrik Bundgaard. “The manual process time we have saved by the new FNOL solution from Scalepoint, we now spend on improving the customer experience across our other channels. Altogether, our new automated processes result in more satisfied customers as well as happier employees. If we could quantify those gains, the payback time of the investment would be even shorter.”
A customised standard solution
Using a SaaS solution means that all Scalepoint’s customers run on the same version of the software. At the same time, the solution is adapted and optimised for the individual company’s needs and requirements via a choice of modules and configurations. In the current FNOL solution, Codan has designed the customer-facing user interface, while all data is immediately integrated into the Scalepoint Core system. In this way, Codan continues to have full control over both the user experience and how the claim process should operate.
In an upcoming version of Scalepoint’s claims management system, it will be possible to design the user interface directly in the system, and Codan will consider using this option.
Henrik Bundgaard is often asked if Codan will not look identical to all other insurance companies when they run on a standard cloud solution, but he doesn’t share that concern.
“We can configure the system to match our products, processes and corporate identity,” emphasises Henrik Bundgaard. “As long as we can apply our business logic and maintain our unique Codan “look & feel” in the standard solution, that’s the way we will go. We welcome everything that makes it faster and easier to adapt to the market, launch new products and improve the customer experience.”
The decision to use SaaS from a public cloud was made by Codan years ago. At that time, all aspects of security, availability, uptime, flexibility, and scalability were thoroughly researched.
Coming to that decision means that Codan can move quickly and achieve great results with modest investments. The development of self-service solutions requires continuous development. It is not always possible to predict how customers perceive, interpret, and react to new information and new functions, so one must be able to test and try.
“We are now reaping the many benefits we have gained with the new FNOL and an agile way of working in the development of self-service solutions,” emphasises Henrik Bundgaard. “The success rate is very high, and if something needs to be adjusted, we can do it ourselves.”
A project that met all milestones
The agile way of working, where you know and agree on the business goals, but do not decide in advance how they are to be technically implemented, can create challenges in many areas.
Along the way, the project team thus found that the business logic of the Scalepoint system, which controls the type of claims an online filing should be linked to, was not advanced enough to lift the automation to the level that Codan wanted. A more advanced Best-Fit logic was necessary for handling redundant claim filings and to ensure that as few cases as possible would require manual interference.
The Best-Fit solution was developed in an iterative process in the joint project group, and a way was found that could both meet the generic requirements for Scalepoint Core as a standard solution and at the same time meet Codan-specific needs. The extended scope could be kept within both the budget and the schedule.
“We are very satisfied with the course of the FNOL project,” concludes Henrik Bundgaard. “We have reached our objectives within the agreed time and budget, and the solution delivers on the key variables that are important to Codan, namely high customer satisfaction combined with a reduction in administration. At the same time, we are better prepared for a continued increase in the number of digital claim filings and continuous improvements of the customer experience.”
Codan offers insurance to both consumers and companies. However, the company also wants to help their customers to prevent and avoid accidents. That’s why they not only offer insurance; they also advise on prevention. And they are proud that the vast majority of their clients tell them that they are happy with their prevention and insurance coverage offered.
Codan has a staff of approx. 1,100 that serve well over 400,000 consumers and businesses. This makes them Denmark’s third-largest insurance company.