P&C insurers are grappling with massive headwinds: a low-interest economic environment, new competitors, and rapidly evolving technology. Insurance executives can turn to automation to save costs and improve the efficiency of their business.
Consider implementing these five fundamental principles to drive more value from technology.
1. Understand your status quo very well.
Before getting started with an automation project, your organization needs to understand the current environment. Know and analyze your existing claims systems and underlying business processes. Then, you can identify opportunities to eliminate, simplify, and automate.
To start, document, and analyze your current business processes if you haven’t already. The ultimate goal is to identify bottlenecks or inefficiencies. Next, identify the improvements that will deliver the greatest return on investment and increased customer satisfaction.
Don’t swing for the fences to start. We suggest starting with a smaller initial project. You might want to break up the task into phases: Phase 1 can be automating a claims payment process end-to-end, as an example.
2. Set a realistic scope of expectations.
When redesigning a process for efficiency, think about how you actually work instead of how you should work or how you want to work.
If you start process modeling from an idealistic point of view, the targets you set could become frustratingly impossible to achieve. On the other hand, when you begin adding improvements to the current process, you should set a realistic scope to see meaningful progress over time.
3. Take a step-by-step approach.
It isn’t necessary to automate all of the necessary processes at once.
Depending on your budget, resources, and business requirements, you can often divide the project into several phases. Selecting a light-weight automation platform can save you from costly consulting and implementation fees, which can be a good start.
During your early sales conversations, ask potential providers how their solution and teams approach the customer journey and how they plan to partner with you along the way.
If you’re starting a minimum-viable-product project, keep in mind a reasonable timeline shouldn’t exceed three to four months from configuring the project to completion.
4. Keep the customer’s perspective front and center.
Claims remain the “moment of truth” for all insurers and represent the best single opportunity for an insurer to build trust and loyalty with customers.
Customer satisfaction and process efficiency can be tackled and improved at the same time. When starting an automation project, it is important to understand an efficient process alone won’t boost customer satisfaction.
Before embarking on your next automation project, ask how your customers will benefit from the changes you plan to make. Will they need to make one fewer follow-up phone call to ask questions about their coverage? Can they get their claim paid or settled faster from weeks to just days?
5. Keep processes flexible and simple.
Over time, business changes and processes may need to adapt. Your automation solutions should be flexible enough to incorporate and reflect these changes as they happen. Automation aims to make business processes simpler and more straightforward, and if the process requires a lot of human intervention, you must understand that something is wrong.
The bottom line
Metromile Enterprise offers a proprietary touchless claims experience platform using industry best practices and workflows so that you can quickly realize all of the benefits of claims automation. Contact us if you would like to learn about how we’re helping other P&C insurers fast track their claims innovation roadmap and enable a modern, digital claims experience for their customers.
The COVID-19 pandemic has turned many former office employees into remote workers, and with their jobs no longer tying them down to a particular location, some are leaving the cities they used to call home for greener pastures.
If you find yourself in this situation, it’s important to let your car insurance company know you’re moving, so they can update your address.
Unfortunately, your premium might increase because of your new location. So it could be a good time to look for a new auto insurance policy. Metromile’s pay-per-mile car insurance charges you for the miles you drive, so drivers who don’t drive often or long distances can save hundreds of dollars by switching.
We all know how stressful moving can be. Between finding a new place to live and packing, car insurance is probably the last thing on your mind right now. But this is one more item you should add to your moving to-do list.
Why is it so important? Let’s find out.
Why do you have to change auto insurance when you move?
There are two important reasons why you need to update your auto insurance when you move.
Your car insurance company might not operate in the state where you’re moving. Each state has its own licenses for insurance, so you’ll want to make sure your car insurance company operates in your new state. You might need a new auto insurer if your old insurance company isn’t available where you are moving.
Even if they do have a presence there, they might want to adjust your premiums based on your new address. Location matters. Many insurance companies consider where you usually park your car each night to determine the price you pay.
What if I don’t tell my car insurance company I moved?
It could be tempting to not say anything, especially if you’re concerned your premiums will go up.
But there are a few reasons why you’ll want to let your auto insurer know you’re moving:
If you move out of a state, you’ll need a new auto insurance policy before you can register your car. Failing to register your car could get you into trouble with your new state.
If you get into a car accident and need to file a claim, your insurance company might cancel your policy when they find out you moved without telling them. That means you might not be covered if something goes wrong. Not to mention, driving without insurance is illegal in most states.
If that doesn’t get your attention, this might: Not updating your address could be a form of insurance fraud.
We’re not trying to scare you, but we think it’s important you understand the consequences of not updating your auto insurance policy when you move.
The same goes if you’re only moving temporarily, but plan to return home in a few months. But each insurance company might have a different timeline for what constitutes a temporary move. So you should check with your provider to be sure.
Does your ZIP Code affect your car insurance?
Your auto insurance rate is based on a number of factors, including where you live and:
Vehicle type and age
So if you move, your auto insurer might update the price you pay to match the rates in your new location.
Why does your car insurance go up when you change your address?
No matter how safe a driver you are, your location is bound to impact your car insurance.
There are three reasons why the price you pay for car insurance might go up when you change your address:
You move to a place with a higher rate of car accidents.
You move to a place with a higher rate of stolen cars.
You move to a place with higher or different state minimum insurance requirements.
So we’d expect your car insurance premium to go up if you move from a small town where there are fewer cars or more patient drivers to a big city with heavy traffic and drivers who might speed or run red lights. If you’re looking for more value from your car insurance, Metromile could help low-mileage drivers (most Americans!) save money.
On the flip side, your car insurance rate could go down if you’re leaving an urban area to someplace where there are fewer hazards on the road.
When should you change your car insurance when you move out of state?
Whether you’re moving out of state or across town, it’s essential to update your address.
Depending on where you go, you might also need to register your car with the local department of motor vehicles or the licensing department and get a new driver’s license.
But with so many moving pieces, it can be confusing to figure out what to do first, and when to do it. So we put together a few steps for you to follow.
1. Let your car insurance company know before you move
Each car insurance company has its own policies.
So it’s important to communicate with them early and often to figure out if they offer car insurance where you are moving, how much it will cost, and exactly when you should update your policy.
2. Don’t cancel your current car insurance policy before you move
Driving without insurance is illegal in most states.
Even if it’s only for a few days, you risk having no insurance coverage if you get into an accident.
You should also know that canceling your old insurance policy before you start a new one could increase your premiums. Auto insurers will refer to this as a “gap in coverage,” and they see it as a sign that you might be a risky driver.
After you move, call your insurance company and give them your new address.
Typically, you have 30 to 90 days to update your insurance, but you should verify these details with your car insurance company when you call to let them know about your upcoming move.
4. Shop for a cheaper car insurance
If your auto insurance company doesn’t operate in the new state you’re moving to, or charges too much, you can also shop for another car insurance policy.
People who don’t often drive or drive too far should look at Metromile. Metromile customers pay for the miles they drive and can save hundreds of dollars if they are a low-mileage driver.
5. Get a driver’s license and register your car in your new state
Once you update your car insurance, you can head over to the DMV to register your car.
The DMV will want to see proof of insurance before they approve your vehicle registration and give you new license plates. Most states will give you at least a month to register your car, but keep in mind some states require you to do it immediately! It might take a while to schedule an appointment, so it’s important to get on top of this as soon as you move.
While you’re at the DMV, this could also be a good time to get your new driver’s license so you can knock two things off your to-do list at the same time.
What is this “pay-per-mile insurance” you keep talking about?
Pay-per-mile auto insurance lets you pay for what you use.
Most car insurance companies bundle up everything into one big insurance policy and don’t know how much you drive. But with pay-per-mile insurance, you pay for how much you drive.
At Metromile, you’ll pay a base rate, starting as low as $29 per month, plus a few cents for every mile you drive, measured accurately through a secure device you plug into your car.
Matthew Walsh spent his career in the insurance industry, managing complex claims, including exotic vehicles, motorcycles, and high-cost losses. He was most recently the director of claims innovation at Metromile, where he focused on automating claims, digitizing the first notice of loss, improving fraud tools and detection, promoting self-service, and telematics for the leading pay-per-mile insurance company.
While at Metromile, he partnered with Metromile Enterprise to innovate the insurer’s claims operations. He notes automation is a key competitive advantage: It enables the insurer to achieve significant customer experience improvements, boost employee productivity, and increase profitability.
Matthew explains how insurers can strategically deploy automation projects: “You don’t have to shoot for the moon to get started,” he says. “Start by taking baby steps and handling those low complexity claims.”
How can insurers use automation in an organizational capability?
Automation is a key competitive advantage for Metromile. The insurer seeks to remove redundant work and tasks to allow their employees to focus on value-added work: answering customer questions and strengthening customer relations.
Automation is also the backbone of a self-service platform. Customers can self-service their claims when and where they want without giving up the support of a claims adjuster if needed. The automation powers the self-service tool, so customers can set up an appointment with their preferred repair facility or submit photos at their convenience. Metromile customers often boast about how easy it is to file a claim and how responsive the process is on online reviews.
Automation also allows Metromile to operate more efficiently to reduce their expenses. In turn, they can reduce rates to be more competitive in the marketplace. They pass their savings along to their customers.
How do you decide what projects are ripe for automation, and how does technology play a role?
The best practice is to expand end-to-end, touchless claims automation capabilities. A good chunk of Metromile’s claims are fully automated end-to-end with either low or no human touch, for example. They are focused on fully automating low complexity, low fraud, single-vehicle type accidents with no injuries. These claims are the bread and butter of automation, and Metromile Enterprise does this very well.
When I approach an automation project, I look at automating the most frequent tasks that are also the least complex. This is the low-hanging fruit: I can deliver a solution easily and produce some positive business gains. For example, I go after high-frequency items or processes with low complexities first. They are the easiest to implement and where you can deliver the most bang for your buck.
Further along, you want to automate the low frequency, highly complex items, such as when an attorney might be involved. There is a lot of foundational work that needs completing in the beginning, so you have to build up to this. You have to think about the incoming data for a claim and how you’re collecting it. You need to collect clean, structured data to make the right decisions downstream.
Notably, Metromile evaluates, tests, and refines their approach to automating more complex claims, such as those with an injury. They enable third-party customers to service their claims just as easily as first-party customers do now.
To achieve this efficiency, they leverage telematics data, which provides rich information from a customer’s crash. They say they can tell when a crash has occurred, when and where it happened, the points of impact, severity, and whether they may be liable in most cases. All of this data is a crucial factor in automating their exposures without a lot of adjustor intervention.
Many decisions to automate or not to automate are dependent on the facts of ths loss. Some accidents are straightforward, such as when someone gets rear-ended, and you can predict and determine liability based on the data, but others are much more complex. You have to build along the way to get to this level.
Why is the first notice of loss important to automate?
You’re gathering all of your facts of loss at the first notice of loss. It’s the key to accurate assignment and claims segmentation, including the decision to automate or not automate a claim. I saw firsthand working at top-10 insurance carriers the struggle of getting the right claim to the right person early. It often required claims to be transferred multiple times, creating delays and poor customer service.
If you collect all of the right information, such as impact severity, points of impact, and injury information, you can direct the claim to automation or the right adjuster the first time. The result is a shortened cycle time and improved customer experience. You don’t have to shoot for the moon to get started. Start by taking baby steps and making improvements to your first notice of loss. A good place to start is implementing a digital first notice of loss for your claims journey.
What do large P&C carriers struggle with when it comes to claims? What are their most pressing pain points?
Many processes at traditional insurers are manual and labor-intensive, but they don’t have to be. For example, an adjuster typically collects and requests photos or payment information from a customer over the phone. The data is also collected downstream, late in the claims process, when the adjuster needs it to take action. Insurers know they will likely need this information to take action later, but they choose not to collect it early in the claims process. Instead, they contact the customer multiple times to gather what is needed one piece at a time, creating delays and inconveniencing the customer.
With Metromile Enterprise’s digital, first notice of loss platform, you can collect photos directly from the customer when the loss is reported. The images are available for the adjuster immediately before the customer’s first call, allowing an adjuster to expedite the claim’s handling. If the claim qualifies for automation, the photos can automatically be sent as an appraisal assignment to an appraiser, speeding up the estimating process.
An insurer could also collect payment information securely through a digital platform before the estimate is returned so that payment can be issued instantly when an estimate is approved. The result is a significantly improved customer experience, reduced claims cycle, and lower operating expenses.
What are the benefits of automating claims?
You can reduce loss adjustment expenses. Metromile reduced these expenses by increasing the number of claims handled without increasing headcount. Adjusters focused on more complex claims, while the automation handled less complex claims. As a result, you take away the cost of handling smaller claims.
For customers, it also allows adjusters to be more available. They can answer more complex questions or support customers who need assistance. Metromile saw improved customer service and NPS scores as they gained capacity through automating less complicated claims.
How do you strike the right balance between technology and manual processes?
Customers are still surprised an insurer can handle a claim without an agent. They might only file a claim once every five to10 years, so it is vital to balance automation and people-powered processes when customers have a question.
Metromile Enterprise can be an electronic adjuster for insurance companies. For example, Metromile uses the same platform for its automated and non-automated claims. Human adjusters can easily step in to assist the customer if needed as a result. As customers get more comfortable with this technology, it is very important to have people available.
What are the biggest opportunities for insurers who are considering working with Metromile Enterprise?
Insurance carriers often struggle to have a broader long-term vision for what the claims organization will look like in two to five years and the steps needed to get there. Many carriers are implementing small, adjuster-facing technology and process changes. They are doing this without considering their role in the overall end-to-end claims journey and their customer experience. They invest in technology to fit their existing claims process and the status quo, when they should be re-imagining what the claims process could be, and investing in that instead.
Customers want to file and manage their claims digitally. They want to be able to self-service their claims at their convenience and have someone they can call if needed. They don’t want to be required to call to move the claim forward. From a claims perspective, insurers want to reduce operating expenses, keep the loss ratio in check, and provide a positive claims experience to retain customers.
Metromile Enterprise can help outline a roadmap for insurers and build and implement the products to meet both the customer and the insurers’ needs.
At Metromile, we’re out to make insurance fairer and more personalized to you.
I joined Metromile because it’s a different kind of insurance company. By harnessing new technology, so customers only pay for the miles they drive, we could change car insurance from a blunt instrument into one that’s finely tuned. We could also help to level the playing field for everyone.
The key premise that powers our insurance — the majority of people who don’t drive a lot should pay less because they’re less likely to get into accidents — was just the first step. Now in select states, we’re taking the next step by factoring in the quality of miles driven. That means that our pay-per-mile insurance will consider the behavior behind each mile, in addition to the number of miles.
As with pay per mile, factoring in the quality of miles driven can result in car insurance that much more closely reflects actual risk, which means a fairer rate for all of our customers.
It might be helpful to think of Metromile’s approach to pricing insurance in terms of three layers.
1. Getting to know you
We begin by learning about you, your vehicles, and your driving record, and look for ways to reward you with a low price to start. Most insurers stop here; I should know, as until recently, I spent more than 14 years working at a large insurance company.
2. Custom billing
The second layer unique to Metromile is the monthly bill. Instead of a typical flat-rate insurance bill like you’d find elsewhere, we break ours into a low base rate and a per-mile rate, giving you more control over how much you pay for car insurance.
Idling in the driveway isn’t as risky as cruising down the highway, and we believe there’s no need to charge drivers as if it is. Pay per mile also enables us to adapt our insurance to your driving habits and lifestyle as it changes.
3. Rewarding good driving
Finally, in select states, we also look for good driving. Our analysis shows that many of our customers can receive meaningful discounts if we consider how they drive in addition to how far they drive. For example, if your average speed is safer than most, we think you should have a better price. Rest assured, we consider trends over time and not individual instances or trips.
The bottom line
Metromile considers how people drive to create more opportunities to save on car insurance in select states. It doesn’t sit right with us that safe drivers have to pay too much for car insurance.
As our pay-per-mile insurance improves, we want to give you more control over how much you want to pay. Our goal is to customize insurance so that it is more affordable and customer-centric.
Jesse McKendry is the vice president of insurance at Metromile. He oversees the company’s insurance product management and marketing efforts. Before Metromile, Jesse spent 14 years in insurance product management and marketing at a major insurance company and has also spent nearly a decade in auto supply chain and logistics, including Daimler and General Motors.
There’s nothing like the feeling of getting your first car. But before you surprise your teenage driver with the keys to an old car on their 16th birthday, you should know car insurance might cost more than the car itself. Teenage drivers are expensive to insure because they tend to get into car accidents more often than experienced drivers. But they also don’t drive as often as most adults. If the teenager in your family only drives to school and their part-time job, you might be able to save money with pay-per-mile car insurance.
Keep your eyes on the road. Your teenager shouldn’t use their cellphone, change the music or radio station often, check their makeup, eat or drink while they’re driving.
Take your time. There’s no need to speed or tailgate, even if you’re running late.
You shouldn’t be drinking, especially not if you’re driving. Be strict about driving when alcohol might be involved. “Buzzed” driving, or driving while intoxicated but under the legal limit to be considered drunk driving, can be just as dangerous as drunk driving. No one, especially not teenagers under the age of 21, should consider driving after drinking.
Don’t drive when you’re tired. Consider setting a curfew to help ensure your younger drivers operate a vehicle only when they’re most alert.
No friends in the car without a responsible adult to supervise.
It’s also important for parents to lead by example. If your teenage driver sees you breaking the rules, they might think they can get away with it, too.
Is it better for teenagers to get their own car insurance or be added to their parents’ policy?
Here are a few things to keep in mind as you make your decision.
Can teenagers get their own car insurance policy?
You might be thinking about getting your teenage driver their own car insurance policy, especially if they drive their own car.
This can be a good way to shield the rest of the family from expensive insurance premiums.
Unfortunately, teenagers might have trouble getting car insurance on their own because they’re underage. But if a parent co-signs, that could make it easier to separate the teen driver’s policy from the family’s policy.
Should parents add a teenage driver to the family’s car insurance policy?
If your teenager drives the family car, you might be required to add them to your auto insurance policy, as they are a potential driver in your household.
This could raise your insurance rates.
But if you have a good driving record, your experience could help reduce the rate your teen would pay if they have their own car and took out a separate insurance policy.
The catch to adding a teen driver to the family’s insurance policy is if they get a ticket or crash the car, it could raise the whole family’s rates.
5 reasons why pay-per-mile insurance makes sense for teen drivers
Teenagers drive fewer miles than any other age group.
According to the U.S. Department of Transportation’s Federal Highway Administration, teenagers drive an average of 7,624 miles per year, which is about half as many miles as adults drive, except senior drivers.
The less you drive, the more you could save with Metromile.
1. You only drive to school
If you use your car to drive to school instead of riding the bus, you probably don’t spend that much time behind the wheel.
So you might as well pay for the miles you drive.
2. You’re at college, but left your car at home
If you’re away at college for most of the year, you probably don’t put too many miles on your car. Instead, you might spend more miles on public transportation, ride-sharing, or your bike.
With pay-per-mile insurance, you don’t pay for miles you don’t drive. College and student drivers can pay less than other drivers who might have to commute far distances for work or drive more regularly.
3. You drive an old car
It’s less expensive to insure a used or older car. Insurance companies provide lower rates because the vehicle might be cheaper or easier to repair than a newer model or a luxury car.
You also might not need as much coverage for an older car because cars tend to drop in value over time. You don’t want to have a deductible that costs more than how much your car is worth, for example.
4. You took a defensive driving course
In some states, Metromile offers discounts to teenagers who take defensive driving classes.
Being proactive about improving your driving can demonstrate responsibility and show your insurer you are a lower-risk driver.
5. Your car has safety features
Metromile offers discounts to drivers whose cars have certain safety and anti-theft equipment. This might include automatic seat belts, airbags, alarms, tracking devices, and vehicle recovery devices.
If your vehicle is equipped with features that make your driving safer or decreases the likelihood of an accident or other car-mishap, you could be rewarded with a lower rate.
Does your teenager only drive to school and work?
If they don’t get behind the wheel that often, find out how much you could save with a free quote from Metromile.
Women tend to be more responsible drivers. Compared to men, they drive less often, get into fewer car accidents, and are more likely to wear seatbelts. But in many cases, women pay just as much — if not more — for car insurance than men. That’s where Metromile comes in. If you’re a safe driver who doesn’t get behind the wheel very often, you might be able to save money with one of our personalized pay-per-mile car insurance policies.
How much do women drive?
According to the U.S. Department of Transportation’s Federal Highway Administration, women drive about 40% fewer miles than men.
The average driver logs 13,476 miles each year.
Now, take a look at how those miles are split up between men and women:
You’ll notice that in every age group, men outlap women in total miles driven each year, and the disparity only grows with age.
So by default, women drive less than average.
Why does it matter that most women drive less than men?
When it comes to insurance, the fewer miles you drive, the less risk you carry. With a pay-per-mile policy, the insurance company passes the savings onto you.
What’s the difference between regular car insurance and pay-per-mile insurance?
Most car insurance companies charge drivers a large flat rate. But if you don’t drive very much, that’s sort of like paying for an all-you-can-eat restaurant buffet when you’re only hungry enough for a small salad.
You’re overpaying to compensate for other people who drive more than you.
The way pay-per-mile car insurance works, by contrast, is you pay for the miles you drive. It’s fairer and can be more affordable.
At Metromile, you’ll pay a base rate, starting as low as $29 per month, plus a few cents for every mile you drive, which is measured accurately through a secure device you plug into your car.
Because you get charged by the mile, a pay-per-mile insurance policy could make sense for women who drive less often than men.
How much could Metromile save women drivers?
Low-mileage drivers who switch to Metromile save hundreds of dollars on average:
Are women better drivers than men?
Not only do women drive less often than men, but they’re generally also more responsible on the road.
“Women tend to be better drivers than men — much better, judging by the number of deaths they cause on the road,” Nicholas Bakalar wrote for The New York Times.
But it gets worse: The Insurance Institute for Highway Safety claims “crashes involving male drivers often are more severe than those involving female drivers.” According to the institute, male drivers are more than twice as likely to be killed in a car accident.
If you look at the causes of those fatal car accidents, male drivers are about four times more likely than women to be caught speeding, or drinking and driving.
As you might imagine, the safer you drive, the more you can save on car insurance. In some states, Metromile even offers good drivers a discount on their car insurance premiums.
5 reasons why Metromile makes sense for women
Whether you’re a college student who walks to class, a young professional who commutes to work, or a stay-at-home mom who drops her children off at school, if you don’t drive very often, you could probably save a bunch of money with pay-per-mile car insurance.
1. You’re a student
Students put fewer miles on their cars than most other drivers, and this is especially true among women.
If you’re in high school, your parents might only allow you to drive to school or a part-time job, or you might be getting around mostly by carpooling with friends.
Either way, if driving is more of an occasional task than a necessity, you could save money with pay-per-mile car insurance.
2. You’re a young professional
After you graduate, you might rely on your car more often to get to work.
Young professionals, especially women between the ages of 20 and 34, drive more than any other group of women. But they still put fewer miles on their cars than the average driver. After all, chances are the office is accessible by public transportation or isn’t too far away from home.
That means they could save money by switching to pay-per-mile car insurance.
3. You’re a stay-at-home mom
If you’re a stay-at-home mom, you might not get behind the wheel that often.
Whether you’re dropping your kids off at school, sports practice, or picking up groceries, if you’re not the primary driver in your family, you could probably save money with a pay-per-mile car insurance policy.
4. You’re a grandma
If you enjoy driving once in a while to visit your grandchildren or only get behind the wheel to run occasional errands, you might save money with pay-per-mile car insurance. Women who are over the age of 65 drive less often than any other group of female drivers.
And because you can control how much you want to spend each month with pay-per-mile insurance, you can reduce the chances of any surprises on your bill, especially helpful if you’re on a fixed budget or income.
5. You’re married
Regardless of your age or gender, married drivers tend to be safer drivers. They take fewer risks on the road, so they’re cheaper to insure.
If you haven’t done so already or recently got married, consider letting your insurance company know about the major milestone. You could be due for a discount or a lower rate.
What’s more: If both you and your partner drive your own cars, you could save money by adding both vehicles to the same insurance policy to take advantage of the multi-vehicle discount Metromile provides.
If you only drive once in a while, you might be able to save a small fortune with pay-per-mile car insurance.
Find out how much you could save with a free quote from Metromile.
Insurance companies make an unspoken promise to their customers: we’ll be there when you need us. Unfortunately, when it comes time to deliver, many policyholders ultimately don’t believe insurance companies are fulfilling this promise.
According to Accenture, 41% of policyholders who submit a claim are likely to switch insurance companies within a year. The survey also reveals that customers who have submitted an insurance claim in the past two years are almost twice as likely to switch insurers in the next 12 months compared to those who have not submitted a claim: 41% compared to 22%.
The importance of claims service
Claims are “the moment of truth” for insurers. Insurance companies might have no better opportunity to leave a positive impression and create loyalty then.
According to JD Power, consumer switching all comes down to poor customer service. As a company whose focus is enabling digital insurance products and experiences, Metromile Enterprise sees many insurers lagging on technology, including using legacy approaches and processes to serve their customers. This doesn’t work in 2020 when consumers have become accustomed to digital and self-service.
Today, we build relationships online. And because of this, digital laggards can find it challenging to establish relationships with their customers and differentiate their products, especially when they interact with them so infrequently. To improve customer satisfaction, insurers must focus on digitizing the claims process and, more importantly, give them the freedom to interact with insurers on their terms. To achieve this, insurers need to start with improving a customer’s first notice of loss (FNOL) experience.
Why insurance companies should consider digital FNOL
Companies like Amazon have set new consumer expectations, and consumers increasingly want digital options from the companies they do business with, including insurers.
By digitizing FNOL, insurers can move the claims process online and provide a more streamlined and improved customer experience.
Compare this to the current FNOL model used by many large insurance companies: Call center employees manually collect incident data in an error-prone, costly, and time-consuming process for the insurer.
Worst still, many insurance companies outsource their FNOL operations to a specialist contact center. Some customers do not want to rely on a call center through the claims process.
A recent survey by Intelligent Insurer found insurance executives identified FNOL (59%) as the part of the customer journey with the greatest potential for digitization, followed by payment (50%) and fraud checks (46%).
For the digital consumer, insurers must offer an omnichannel customer experience. Instead of relying on claims or customer service agents to manually collect and input data or provide critical information, customers should be able to serve themselves on their terms.
Fortunately, some insurers are beginning to make progress. According to Novarica, midsize property and casualty carriers have been slower to adopt the digital FNOL solutions, but more than one-third either have or intend to pilot mobile FNOL soon.
How insurance companies are digitizing their operations
Metromile Enterprise, the software-as-a-service business group of the namesake pay-per-mile car insurance leader, partners with insurance companies to help them operate with greater efficiency.
Insurance carriers are licensing Metromile Enterprise’s platform to automate claims to expedite resolution, reduce losses associated with fraud, and unlock the productivity of employees so they can work on higher-impact experiences.
In short, Metromile Enterprise focuses on providing insurance companies with the best possible omnichannel customer experience supported by intuitive digital processes.
Notably, Metromile Enterprise has a sophisticated touchless claims platform that can work on top of existing claims management software. Metromile launched Metromile Enterprise in 2018 to enable end-to-end digitization of the claims customer journey and make this valuable technology accessible to other property and casualty insurers around the world.
Report, our dynamic FNOL SaaS application, provides a way for carriers to offer 24/7 access to critical services, such as the ability to file claims digitally using their desktop or mobile phone.
Report gives customers a modern digital channel to report a loss of any type and tailor questions dynamically to capture the most necessary and relevant loss information. On average, 55% of all inbound claims at Metromile are filed digitally with Report, and two-thirds of those claims come from a mobile app or mobile browser.
Report is one of many cloud-based applications built on the Metromile touchless claims platform. Designed for claims teams at large insurance companies, Report allows claims subject matter experts to develop FNOL user interfaces without relying on IT resources or writing code. The web-native application can gather intel immediately after a loss through location services, image capture, video capture, and more.
Having a robust digital claim intake technology and process creates a strong foundation for carriers to develop claims straight-through processing capability. According to an Intelligent Insurer survey, getting value from claims data is most insurance executives’ top priority over the next 12 months.
Report can seamlessly capture and pass on the detailed claim data of any loss type to any of the insurer’s existing downstream claim systems to initiate any next steps from claim segmentation, fraud check to liability determination instantaneously.
When used with Detect, Metromile Enterprise’s AI fraud detection, and Streamline, Metromile’s intelligent process automation, Report can feed valuable loss information to Detect for automated fraud checks and to Streamline to give policyholders a digital claims experience, including the opportunity to self-service a claim without a claim adjuster’s help.
Digitizing claims can pay off. By making systematic yet bold moves, insurers could see increased customer satisfaction and reductions in claims expenses by up to 30%.
Reach out to us if you’re interested in learning about how we help insurers fast track their digital claims innovation roadmap.
Amrish Singh is the general manager of Metromile Enterprise. A lifelong technologist, he has dedicated his career to helping companies operate with greater efficiency and provide a premium customer experience in the enterprise software industry.
Insurance industry veteran Bill Chval recently joined Metromile as our vice president, enterprise sales. While he may be a new team member, Bill had known Metromile since our earliest days, when we had fewer than 15 employees in a tiny office in Redwood City, California.
Tell us a little bit about your background.
I started my career in the treasury bond options pit at the Chicago Board of Trade. Sales had always been a passion of mine. As a longtime athlete, I love to compete; and I think the two go hand-in-hand.
I had the opportunity to learn about the property and casualty insurance industry while at CCC Information Services selling estimating software. From there, I moved into the services side of the industry. Both stops in my journey were invaluable in the early stage of my career because I learned how important it was to apply a consultative approach to sales.
You’ve had a lot of experience in car insurance technology long before “insurtech” existed. What were the early days of insurtech like?
When I started in 1996, 30% of estimates were still written by hand. The other 70% were written in a DOS-based estimating platform with no communication tools. Customers would have to take physical photos and mail them to the company. Physical file storage was on-site in warehouses. The average auto claim cycle time was more than 20 days. Compare that to today: a customer can take photos on their phone, upload them to their carrier, and have their claim handled in hours, especially when using Metromile’s technology.
Based on your vast industry experience, what’s an important area of focus people often overlook?
Customer engagement is critical since the insurance market is hypercompetitive. Many insurance carriers invest a significant amount of their budget and energy selling and onboarding new customers. In some cases, they forget to support current customers, which causes them to wander during periods of uncertainty. In order to retain customers and ensure their satisfaction, it’s important to offer solutions with a holistic and scalable approach. Carriers often miss key opportunities to connect during a policy’s lifecycle, leaving them with lower renewal rates.
What attracted you to Metromile?
Metromile’s talent, technology, and vision. As a Metromile business partner for the past six years, I’ve been fortunate from the early days to have a front-row seat to the company’s evolution and the power of AVA. Knowing Metromile’s claims team on the consumer side gives me so much confidence in Metromile Enterprise; I’m thrilled to be part of articulating it to traditional insurers.
I also love the team; the energy we have here is amazing. The team possesses key qualities needed to win: a relentless drive, a tactical approach, and the ability to deliver consistent value.
What do you see as the big opportunities for our enterprise team?
Customer engagement and digital payments are hot topics. Most carriers do a good job sourcing partnerships, but a below-average job enabling them. Presenting a solution that provides an “out of the box” touchless roadmap with business processes with little to no customization is a game-changer. Carriers heavily invest in multiple partnerships. I won’t name names, but a few big players are all segmented and have their workflows with multiple touchpoints. The process is not repeatable, and outcomes vary with too much uncertainty. With Metromile Enterprise, we’ll simplify that web and produce the consistent outputs these carriers don’t just desire but will demand in a post-COVID-19 world.
Do you see traditional insurers accelerating their digital roadmaps amidst COVID-19?
We’re going through a challenging time for our industry, but it’s also the biggest opportunity we’ve ever had. Since COVID-19, digital strategies have accelerated, and carriers are looking at claims transformation much more aggressively. Carriers that didn’t have a digital plan, do now. Those that had dipped their foot in the digital pool are now jumping in. It’s one of the reasons why I’m so excited to join Metromile. We can shepherd these carriers through massive transformation easily and painlessly.
You’ve spent your careers motivating large sales organizations. In your experience, what makes a good sales leader?
Six skills: vision, high energy, organization, patience, passion, and a consultative approach.
How do you define success in sales?
Success is not only defined in the wins, but in terms of long-term relationships and partnerships. I have customers who I have done business with for 20 years. It’s important to consistently provide solutions to your customer that not only add value today but position them for success in the future. One of the greatest compliments is to have customers look at you as their industry consultant. The Metromile Enterprise team’s relationship with Tokio Marine is a great example: the team has done an impressive job building a relationship with Japan’s largest property and casualty insurance group, and it’s grown over time into a true win-win for both companies.
Just as important: how do you spend your time when you’re not working?
I love fitness, working out, Spartan races, basically anything competitive and challenging. It probably goes back to playing sports most of my life, especially playing college baseball. I also enjoy coaching my daughters’ sports teams. And, I look forward to traveling again with my family once we’re able to do so!
I also love cars. My first car was a project with my father: a 1965 Chevy Malibu Super Sport — fire engine red!
Julie Santiano is a Los Angeles native armed with a duo of Tesla vehicles and a penchant for helping to create a more sustainable and environmentally-friendly future. She shares her Tesla Model S and Tesla Model X on Turo to help people live out special moments. Julie chose Metromile car insurance to benefit from the transparent pay-per-mile pricing.
You own two Teslas! What’s the appeal for you?
I moved up to the San Francisco Bay Area a couple of years ago to work at an electric vehicle company. I’m a huge fan of a sustainable future, and a big part of that is improving cars on the road. I normally wouldn’t be able to afford a Tesla, but hosting through Turo had made it a lot more affordable and accessible.
Are the people who book your cars on Turo techies like you?
Definitely — A lot of the reservations I get are out-of-towners, who have never driven a Tesla, and Bay Area locals who want to do a test drive before committing to owning and garaging one.
Your Turo profile shows you’ve completed training on enhanced cleaning and disinfection practices. Is this something you did because of COVID-19?
I’m a neat freak anyway, so I’m always cleaning and detailing my cars! It’s my way to check in with the car between rentals. I want my guests to enjoy their experience, knowing they’re safe.
How have Turo bookings changed because of COVID-19?
In the past, there were more bookings for weddings — brides and grooms wanting to roll up in style to their rehearsal dinner — just to add another special experience to their whole wedding weekend. Since COVID-19, I’ve seen more folks booking luxury weekend getaways — lots of trips down to Monterey and Santa Cruz. Some people will even rent one of my Teslas for a week to head down to Los Angeles or Yosemite.
How did you hear about Metromile?
I had been anxiously waiting for your partnership with Turo to launch since you announced it last year! I got really excited about Metromile and being able to remove the renters’ miles from my personal expenses. Anything that simplifies my processes — I’m all about it!
What was your old car insurance like compared to Metromile?
I had been with my last insurance company for 10 years. I hated that I was double paying for insurance, with my policy and Turo’s coverage. I always meant to shop around for car insurance but never did. There was always so much ambiguity.
I like Metromile because it’s super transparent. I don’t feel like you’re trying to give me a run for my money, and that alone makes it worth it. Teslas are really expensive, but with Metromile, I’m able to have the coverage I need; and I’m seeing about an 80% savings! Now I have peace of mind that I’m not leaving money on the table. Knowing I’m not getting ripped off is great.
What is your favorite Metromile feature?
I like that my bill is paid automatically. I don’t have to think about my coverage, and I’m still being taken care of. Your process for filing a claim is so seamless compared to my previous insurer. Setting up and plugging in the Pulse device was super easy. I love it!
Wouldn’t it be great if we could cut down one of our most expensive bills by paying only for what we use? Some car insurance companies say they want to do exactly that with pay-per-mile auto insurance. Low-mileage drivers could save with pay-per-mile car insurance, but it can be hard to understand what that means. You might ask: If I drive every day, am I a low-mileage driver? Alternatively, how low is low?
We have the answers. Consider this guide if you’ve ever wondered about pay-per-mile car insurance or how you can keep car insurance costs low.
What is pay-per-mile auto insurance?
Pay-per-mile car insurance is insurance based on how far you drive. Instead of paying a flat rate that doesn’t change like with other insurance companies, your actual driving determines your car insurance premiums.
While different companies might offer pay-per-mile car insurance, sometimes called “pay as you go” car insurance or “pay as you drive” car insurance, Metromile is the leading pay-per-mile car insurance company in the U.S. The company started to create a new type of insurance personalized to each driver and their unique lifestyle.
After you get started with pay-per-mile car insurance, you’ll notice your bill includes two parts: a low monthly base rate and a per-mile rate.
The monthly base rate helps keep your car covered, even when you’re not driving. You can think of the monthly base rate like the fee your cell phone provider might charge you to keep your telephone number and line open.
The per-mile rate counts how far you drive. The rate doesn’t consider how long you are in your car, so you won’t ever get penalized if you’re stuck in bumper-to-bumper traffic.
For example, if your base rate is $29 per month and your per-mile rate is 6 cents per mile, your bill would be just $56 if you drove 450 miles that month.
As an added value, pay-per-mile car insurance often comes with a daily cap. Your miles are free after you drive 250 miles (150 in New Jersey) in a single day. The bonus lets you avoid any surprises on your bill and can help prevent stress. There’s no worry of “going over” with pay-per-mile car insurance.
How are pay-per-mile car insurance rates determined?
Unlike traditional insurance, pay-per-mile car insurance rates focus on someone’s actual driving.
Driving behavior, including how many miles someone drives, and the coverage selected, are the main factors Metromile considers. Other factors include the vehicle and type of insurance policy. Depending on the state, Metromile also considers how long someone’s had insurance before, claims history, and other information.
In contrast, traditional insurance rates may weigh more heavily on a driver’s age, gender, marital status, credit score, ZIP Code, or driving records, depending on the company, policy, and state. Often, insurance companies rely on these factors to determine the risk of large groups of drivers and might not personalize rates on a more individualized basis. Instead, Metromile uses technology and observed driving to help price rates down to the mile for each driver.
How much can you save with pay-per-mile auto insurance?
The savings can add up with pay-per-mile car insurance if you don’t drive much. Drivers saved $741 a year on average when they switch to Metromile, according to a recent survey of new customers who saved.
But drivers can save even more if they drive less.
Metromile also offers customers additional discounts to drivers who insure multiple cars on the same policy or install an anti-theft device or other equipment to make their vehicles safer. Drivers could also benefit from lower rates for their safe driving.
Who should get pay-per-mile car insurance?
Most Americans could find value by switching to pay-per-mile auto insurance. According to the U.S. Department of Transportation, Americans drive about 13,500 miles a year on average. Now, with more and more people working from home and taking fewer personal trips, chances are you are using your car even less.
If you drive 37 miles or fewer per day, you could save money on your premiums with pay-per-mile car insurance.
Drivers who could benefit from pay-per-mile car insurance include:
Even if you commute regularly or spend a lot of time in your car, you could save. Pay-per-mile car insurance doesn’t charge you for how long you drive because it focuses on miles driven.
How does pay-per-mile auto insurance work?
With pay-per-mile car insurance, your driving determines how much you pay for car insurance each month. This can give you more control over your costs, especially helpful if you keep a close eye on your car budget.
Metromile provides drivers with the Metromile Pulse device, a small wireless device that connects you to your car. The device accurately and securely counts the miles you drive to help bill you every month.
Installation is easy and can take minutes because the device plugs into your vehicle’s onboard diagnostic port, generally next to the driver’s side door, beneath the steering wheel, or around the center console. The onboard diagnostic port is the same connection your mechanic might use to check your car’s health in the garage.
The Pulse device needs to stay connected to your vehicle at all times, and Metromile customers are glad they do. The device helps power some smart-driving features. You can find your car’s location, know when street sweeping is happening in select cities, check your miles, review your trips, and more.
Some connected vehicle owners may not need a Pulse device or other additional equipment. Soon, owners of eligible Ford vehicles with built-in connectivity can opt in and connect their vehicle so that Metromile can count any miles driven directly from the vehicle’s odometer.
What type of coverage does pay-per-mile car insurance provide?
Metromile offers four different levels of liability protection and choices for your comprehensive and collision deductibles.
And your car will be covered, even when you’re not paying your per-mile rate. For example, when your car is parked, Metromile will cover your vehicle with comprehensive coverage when relevant.
How do claims work with pay-per-mile auto insurance?
Pay-per-mile car insurance provides the same types of coverage as other insurance companies. Licensed insurance specialists are available, and you can file a claim 24/7, online through the mobile app or Metromile website or by calling.
Drivers can also add roadside assistance to cover lockouts, flat tires, and towing, and an allowance for rental car reimbursements, to their policy.
Metromile also has a direct repair program, which can help expedite claims by making repairs more seamless. For example, Metromile customers can get notified of updates for their repair, changes to pricing, or service delays when they work with a participating repair shop. Metromile customers can use the Metromile app or log into their online account to find a nearby participating repair shop or see if their favorite garage is on the list.
The bottom line
Don’t be fooled: For many drivers, pay-per-mile car insurance can provide the same coverage as other insurance companies at a lower cost.
You don’t need to sacrifice your driving experience with pay-per-mile auto insurance, especially if you don’t drive much or are driving less than you have previously.