Altered attitudes, altered outcomes. Insurance gets a shakeup
In an environment which is notoriously competitive, and where every action is weighted on careful data analysis, the NuvaLaw founders knew that the introduction of our digital negotiation platform for inter-insurance claims would require a mind shift from insurance company leadership, as well as sound evidence of its business benefits.
Fortunately, work with the South African state-supported motor vehicle insurance fund gave two of the NuvaLaw founders more than 40 000 cases to prove its efficacy.
The project saw 76% of the contested cases settled – 70% of which were settled in the conciliation (first) phase. It also showed a reduction in settlement costs of 36%, with capital payouts 42% lower than the typical costs of litigated cases.
Using our expertise in alternate dispute settlement, and building a new process of information management, the team designed a solution which proved that our way of engaging was not only possible, but profitable.
The benefits of the solution are being tested in South Africa with early signs of local insurance companies willing to embark on collaboration and further co-creation. The NuvaLaw process, still relies on an early exchange of information and the abandonment of the traditional litigious environment, but adds enterprise-grade new technologies which significantly improve the settlement experience.
Today, NuvaLaw is also winning over insurers in the UK and Europe. We are working together to co-create a platform-based ecosystem, which relies on collaborative technologies to achieve equitable commercial outcomes in both motor vehicle accident and personal injury claims.
Collaboration is not the natural order in the insurance industry. Nor is it the default state amongst the legal fraternity. Our journey has shown us that while the evidence is there to prove our processes, new technologies such as blockchain and AI can help us catapult the insurance industry into a new age. It is the perfect storm that will disrupt both the legal and insurance industries, for the benefit of the consumer.