By: 25 March 2024
Parametric insurance: transforming claims handling for travel disruptions

Sid Mouncey, CEO of Blink Parametric,  shares insights on the importance of embedding the principles of customer success across all levels of service engagement between insurers and policy holders.

 

Blink Parametric shares common ground across the insurance industry in how we shape KPIs to prioritise not only growth targets, but also positive customer engagement and satisfaction. We recognise that our insurance partners want to support their travelling customers in their time of need, rather than after the fact.

Customers of parametric insurance universally appreciate the value of a simple, seamless service experience delivered at speed. Particularly when they are facing frustrating or stressful travel delays and inconvenience in unfamiliar surroundings.

The ultimate objective with parametric insurance is to deliver an experience that results in a positive outcome following a disappointing event. A positive customer outcome in their time of need can contribute to the formation of a powerful business dynamic. Improvements in net promoter scores can boost trust, drive revenue growth, and increase levels of retention, renewal, and referrals.. When partners and their travelling customers are happy, everybody wins!

The traditional travel insurance offering has no rapid claims handling solutions for common non-emergency claims such as a delayed flight or lost luggage. It requires the traveller to fend for themselves and undergo arduous form filling and document gathering., Then, a manual claims handling process begins, only for the insurer to typically pay out weeks after an event.

It only takes one air travel disruption event, such as the UK National Air Traffic Control system glitch in August 2023 to trigger hundreds of flight cancellations and inconvenience hundreds of thousands of travellers. Being unable to depart, connect for an onward journey or being unable to return home are distressing issues. The impact on delayed customers and travel insurer claims teams can be long-lasting.

Travel insurance brands and insurers who did not utilise parametric technology experienced a significant increase in manually processed claims. This type of surge event can have a hugely negative impact on traditional claims handling processes and lead to major backlogs on all types of claims being processed.

By mitigating risk using parametric technology, the process can be changed for the better to benefit the customer.

 

Image: Canva.
Emma Cockings
Emma is a content editor for Claims Media.