WeGoLook was featured prominently in the most recent Quarterly InsurTech Briefing published on Wednesday by global risk management and insurance brokerage company Willis Towers Watson Securities (WTWS). This research report is widely respected as an authority in the evolving world of insurance technology.
In the briefing introduction, WTWS CEO Rafal Walkiewicz explains that this issue is dedicated to what he calls the “modular economy, where products and services in any value chain are repeatedly dissected into modules that interact with each other seamlessly for the benefit of the ultimate consumer.” He identifies claims management, one of WeGoLook’s primary areas of expertise, as a leading opportunity for the insurance industry to improve efficiency, cost, and customer experience
Opportunity in Claims Management
According to the report, the $170 billion claims management module is one of the most underestimated in the insurance industry. Because it is 90% controlled by incumbents, claims management is one of the ripest areas for innovation, according to Walkiewicz.
He elaborates on why this is the case:
“Claims management can be the most powerful driver of customer satisfaction and retention. Today, it is not always a positive experience. Industry executives estimate that a customer who experiences a personal auto claim could be up to 40% likely to renew their policy, regardless of the outcome [of the claim].”
Claims are one of just two main points of contact that insurers have with policyholders (the other is the initial sale). With so little client interaction, it can be difficult to improve client relationships. This makes claims management an even more crucial part of the customer experience.
WeGoLook in the Transaction Spotlight
It’s no surprise, then, that WeGoLook was a feature in this month’s publication. WeGoLook is a leader in the modular economy (to which the gig economy contributes) and works with insurers across the country to facilitate claims. With more than 30,000 “Lookers,” WeGoLook leverages its on-demand workforce and self-service options to get claims data to insurers faster and cheaper than ever before. Crawford’s acquisition of WeGoLook in January 2017 symbolizes the insurance industry’s move to use the modular economy to improve customer experience just as Walkiewicz describes.
WeGoLook was selected for this month’s briefing among many in the industry riding the wave of InsurTech in an effort to change the industry for the better. Investment in InsurTech increased a whopping 248% in Q2 2017 over Q1 to reach a new record. $289 million invested in early-stage funding in Q2 is also the highest to date. Walkiewicz mentions that these record levels were driven by both an increase in the number of transactions as well as a few, large, capital-intensive carrier investments around the globe.
The transaction spotlight in the briefing that features WeGoLook explains to readers how WeGoLook is improving customer satisfaction and retention while simultaneously driving down costs and time in process.
The article also highlights Crawford’s acquisition of WeGoLook as a single step in Crawford’s overall “digital agenda.” Investing heavily in IT and collecting strategic acquisitions and partnerships, Crawford is embracing the evolution of the industry toward the modular economy and InsurTech in general. Crawford’s acquisition of WeGoLook is a sign of what’s to come for both Crawford and the claims management sector at large.
Disruption or Threat?
With 90% of the claims management sector comprised of incumbents, many are becoming uneasy with the technological changes swiftly overtaking the industry. Walkiewicz addresses this directly, saying that some consider companies like WeGoLook a threat to the status quo. However, Walkiewicz says that “threat” is in the eye of the beholder:
“Whether disruption beckons or opportunity unfolds is primarily a matter of perception relative to a company’s position in the value chain, amplified by how or the extent to which it chooses to embrace or reject innovative technology. We examine how, and with whom, incumbents can truly leverage technology to better meet or exceed client demands at a lower cost.”
This drive to meet the increasing expectations of customers, improve efficiency, and decrease cost of claims is what drives WeGoLook towards global expansion. The report also highlights that insurance isn’t the end for WeGoLook. Instead, it’s just the beginning. WeGoLook CEO Robin Smith explains:
“Continued growth in global markets is critical for WeGoLook and Crawford. This is why WeGoLook is actively expanding to new markets and industries, such as Canada and the UK. As our network of Lookers expands, so too does our ability to bring innovative mobile technology solutions to our enterprise clients in various industries.”