I have spent the last 30 years committed to helping car rental organisations protect their business with comprehensive insurance and risk management solutions.  

The main goal is to ensure each customer has the right level of insurance protection based on their inquiry risk profile, and empowering them to expedite the claims lifecycle. Shortening the claims lifecycle is a critical component to:

• improving customer experience
• reducing business overhead
• improving the utilisation of assets.

Due to changes in technology, the car rental industry has expanded into distinct market segments, including:

• traditional car rental
• car share
• ride share
• peer to peer
• subscription.

Each of these markets exist with unique customer propositions.  A key common ingredient is that they  provide mobility solutions to consumers based on a contractual agreement. The common term for this industry segment is the motor mobility market.

Another common factor is that accidents happen, and often. This can range from a small bumper scratch to a large roll over including multiple vehicles.  Managing the customer experience when accidents happen is a critical component to operating a mobility business.

The Pareto Principle

Over time, I have come to understand that the Pareto Principle – or the 80/20 rule - applies to accidents in the motor mobility market. What do I mean by this?

80% of accidents involve one (rented vehicle), generally at low speed (single vehicle accident). For example:

• gutter scrapes
• reversing into an object while parking
• driving into an object while parking
• left hand damage whilst parking
• storm damage.

20% of accidents involve 2 or more vehicles (multi vehicle accidents).

From the lens of a mobility business this means that:

• 80% of the accidents that occur are low in cost and complexity of management
• 20% of accident have a level of complexity and involve understanding legal liability and negotiating.

The claims bottleneck

My observation is that the people in motor mobility businesses who are charged with managing accident processes have 4 key roles:

• triaging incidents as they arrive and deciding the best way to expedite repairs
• managing the claims workflow through to completion
• managing the customer experience during the process
• ensuring a recovery against the file is achieved if possible.

When you consider that the renter may be liable for additional costs because of an incident, they become hyper-focused on the outcome. Their concerns are exacerbated when they are not involved in the accident process and are at the mercy of the mobility business regarding the end costs. To manage this the mobility business must have transparent systems and processes that involve the renter throughout the journey.

Single vehicle incidents

Most single vehicle incidents are low in cost and complexity, but high in frequency. It is easy for the claims consultant to quantify the loss and settle the claim directly with the renter without intervention from outside sources. However, due to the high frequency of these incidents, the consultant will spend a substantial amount of time manging the various losses and communicating with the renter through to file completion.

Multi- vehicle accidents:

Multi-vehicle incidents are generally higher in cost and complexity, and take significant time to manage to completion. These files will include multiple stakeholders and are likely to need many reviews and follow-ups to ultimately bring the file to a close.

These types of incidents require good business disciplines, systems, and processes to ensure the files are followed through to the best business outcome.

The bottleneck:

A key objective for a motor mobility business is to deliver on customer experience and reduce customer complaints, points of contact and causes for friction. To achieve this, the mobility business  will focus on incidents that fall into the high frequency, low cost, low complexity bucket.

Unfortunately this means that multiple vehicle incidents, which are more complex, more expensive and require more follow up, often become a secondary focus. But delayed action on these  incidents can lead to a spiraling overload of unfinalized files.

This is where the workload bottleneck begins and claims leakage that can have serious impact on the businesses bottom line, leads to overall customer dissatisfaction.

Mobility businesses can avoid this sort of negative outcome by having appropriate systems, processes and mindset towards managing incidents in place. Partnering with businesses such as Insuret can help strengthen business practices, and  ultimately achieve positive outcomes for all stakeholders, in all situations.

Whole of life claims solutions

As a specialist provider of insurance programs to mobility businesses, Insuret has developed whole of life claims solutions that are designed to help motor mobility businesses play to their strengths and deliver the best possible outcomes .  

Digital claims platforms

By providing world class digital claims platforms we provide the capacity for our customers to:

• receive incident descriptions and supporting evidence digitally
• triage incidents and place them immediately into the appropriate workflows
• manage internal claims with robust follow up processes
• decide which claims they should be outsourced to minimize leakage and maximise service delivery
• reduce duplication of processes
• reduce the lifecycle of an incident
• meet best practice in incident management.

Our claims platforms allow motor mobility businesses to seamlessly share files as either insurance claims and or file management. The platforms also enable best practice, more efficient management of less complex internally-handled claims, whilst outsourcing the trickier files that require more follow-up by specialist handlers to complete.

Fee for service file management

Many incidents are too small to warrant becoming insurance claims. Yet some are far more complex complex and should be overseen by professionals with the skills to optimize the outcome. Insuret’s claims administration and management is focussed and designed to manage non-insured losses on behalf of our customers. Ideally, files are delivered seamlessly to us via our digital platform. This then allows us to use the platform as a central communications tool for each file managed.

Insurance claims

When files are large and complex, a motor mobility business will generally want these to be managed as an insured loss. Ideally, files are delivered seamlessly to us via our digital platform. This then allows us to use the platform as a central communications tool for each file managed.

If you have a specific issue that you’d like to discuss or would like to know more about how Insuret  can help protect your business with comprehensive insurance and risk management solutions, leave your comments below, or email me at jason.mcdonnell@insuret.com.au.