Auto Product Reform: Effecting Change

Pending auto insurance product reform in Ontario presents new opportunities for insurers and their third-party vendors to collaborate in bringing the market back to a healthy state. However, change requires leadership, resolution and an enterprise-wide focus to be effective.

We have reached a point in the evolution of the corporate world where astute governance, sound fiscal management and genuine accountability are the order of the day. The auto insurance industry is no exception to this process.

Determining the relevancy of both internal and external issues, while addressing changes necessary to create profit is no small feat. This is the daily challenge facing every CEO, CFO, president and board of directors. In this multi-faceted environment, the day-to-day operation of corporations involves everything from long term financial planning to the implementation of distinct corporate policies.

Guarantees of operational integrity are demanded by shareholders and clients. The development of protocols outlining a code of standards as they relate to the day-to-day operations of the company, and as they pertain to external corporate relationships, are also vital to the big picture. The landscape can, however, often change radically and fundamentally for all of us.

STARTING POINT

With the passing of Ontario’s Bill-166, and the proposed amendments to the Insurance Act, change will once again be the order of the day. In a significant way, the viability and future of every corporation in this industry will be affected by two factors: how well changes are communicated by management, and how well they are implemented at the individual level.

To help insure a smoother transition into this new framework, several approaches can be utilized. These include individual and group reform initiatives, task forces, and innovative technology, all designed to help facilitate a revised style of operation.

The goal? To return these corporations back to profitability, to create a more streamlined and cost effective operation in order to ensure the auto insurance industry’s return to health, competitiveness and prosperity. In these situations, there often exists a dissonance between strategic goals, their intent, and their tactical implementation at the customer level.

Claims representatives and adjusters are also to be considered as major “stakeholders” in this enterprise. They are, in actuality, the system’s facilitators. For most employees, it is difficult enough to cope with changes occurring within one’s own corporate environment. Attempting to absorb and comprehend dramatic, external changes that are occurring with major impact and convergence, often results in high levels of stress that manifest in employee burnout and high attrition rates.

Change at the consumer level must also be carefully administered, to insure that a stable and cohesive corporate fabric remains, and to protect the corporate identity in the marketplace. These employees require as much support as they can possibly obtain, in order to continue being effective and beneficial to their organization.

COOPERATION

The time has also arrived for third-party suppliers to embrace a leadership role and to bring real value to this industry. It is our responsibility to fully comprehend the big picture, if we are to fully understand and communicate the changes that are occurring. It is our role to understand corporate make-up, to work within corporate criteria and protocols and to re-vitalize the concepts associated with customer service, due diligence and the pursuit of excellence.

All of this needs to be done with a cooperative spirit and in a meaningful manner. Many service providers have been major beneficiaries of the system as it previously existed. It is now time to give something back. It is time for third-party suppliers to bring to the table uncompromising integrity, pride and most importantly, unselfish participation.

If we are astute business people, we will realize that a self-serving interest in “the business” is not the answer. Indeed, our big picture has radically changed as well, and those of us who are innovative, creative, and can truly offer something of value to this new order, will undoubtedly become major supporters and contributors to clients at all levels.

Realistically speaking, there must be a “re-education”. We must experience a major paradigm shift in our comprehension of this business and our practical application of this knowledge. And, during this process, when we all realize that it is a brave new world, with well defined rules, regulations and limitations, it will be the survival of the most adaptable and the best. Everyone’s contribution will become measurable.

Physical, psychological, and vocational healthcare providers, their respective administrators and governing bodies must ask themselves some very relevant questions: does the quality of my product warrant the cost? Am I working within my discipline? Do I meet goals and objectives? Does my finished product reflect the standards required to remain reputable and professional?

Claims representatives and their respective management have to ensure that the goals and objectives set forth by the corporation are being met. They also have to deal with a regular lack of understanding on behalf of their claimants, an uneducated and uninformed public, and a workload that would challenge the most energetic and enthusiastic of the best of us.

It is said, “if you are not part of the solution, you are part of the problem”. The role each of us chooses to play will affect the health of the entire system. The time has arrived for all of us to work together in a collaborative manner as leaders of an industry which has become such an integral part of our entire socio-economic infrastructure.