Insurance Hamon Act:
impacts on customer relations and
operational processes

The digitisation of processes:
a lever for optimising operational performance

"In a highly competitive environment and with the adoption of the Hamon Act in France, the business model for insurance companies is being shaken up. Insurers are therefore obliged to reconsider their operational processes in order to remain competitive. Digital technology offers a great lever for meeting this challenge. It makes it possible to improve the efficiency of business processes and to meet consumers' requirements in terms of customer experience."

Céline JEZEQUEL  -  Marketing Manager, Tessi Documents Services

The obligation to be competitive

The traditional insurance market, which was already weakened by the arrival of new aggressive competitors such as all-purpose finance institutions, is faced with an additional challenge since the entry into force of the Hamon Act in France. In a mature market, in a highly competitive environment, insurers are confronted with increased customer volatility, due to regulations that make it easier for consumers to terminate contracts.

In this context, insurers must adapt quickly in order to keep their competitive edge, by improving their organisational and operational performances in particular. It is indeed becoming urgent for them to reduce costs and become more efficient in order to focus entirely on their customers.

Digital technology is an integral part of transforming a company

Digitising processes is one of the levers for improving this performance.

Digital technology clearly makes it possible to meet new consumer requirements and to establish a user centric relationship in that it favours a smooth seamless customer experience (see our article about rethinking customer relationships by developing a user centric strategy)

But it is also a great means to improve the in-house performance of participants and maintain your competitive edge in a mature market. Digital tools facilitate an organisation’s agility, by reducing processing lead-times for management tasks. These time savings can be used to refocus the customer relationship and increase productivity and competitiveness.

Examples of application

This concept applies to all business processes: subscriptions, policy management, claims and even contract terminations.

The customer may for example take out a policy online on any media using their electronic signature. The document is received instantly by the insurer. Using this tool the lead-times for receiving documents and beginning to process them are reduced to a minimum. Sales people can refocus on sales and finding new customers, and the administrative aspects become less time consuming.

Another example: contract termination. The Hamon Act has had two effects on insurers in France: A higher rate of terminations due to the options offered by the new regulations New demands from consumers that wish to change insurers

  • A higher rate of terminations due to the options offered by the new regulations
  • New demands from consumers that wish to change insurers

In terms of organisation, there are therefore a greater number of termination requests to be processed, but insurers must also handle the termination of contracts with previous insurers on behalf of new customers.

Digitisation makes it easier to manage the incoming and outgoing flows and simplifies B2C and B2B exchanges, through digitisation platforms and EDM tools. Administration processes become less restrictive and fastidious, staff refocus on tasks with higher added value, and customer relationships become a priority.

By accelerating their digital transformation, insurers therefore resolve two issues: they improve the efficiency of their business processes and meet the requirements of consumers in terms of customer experience – thereby preserving their competitive edge and their customer satisfaction levels.

With Tessi POST LRE, Tessi assists you with the implementation of an electronic registered mail solution in order to face up to the new challenges imposed by the Hamon Act in France. You can send termination requests for your new customers’ contracts with their previous insurer and also receive electronic registered mail from your competitors. You can therefore use a single platform to send and receive all your documents in full compliance with the regulatory standards in force (Article L. 100 of the French Postal and Electronic Communications Code – Code des postes et des communications électroniques – and the European eIDAS regulation) Our solution ensures the traceability of every exchange as well as optimal security: Managing proof with time stamping of events, the availability of electronic acknowledgement of receipt, signature, sealing and archiving of the supporting documents for legal purposes.

Tessi POST can also be used to send all of your managerial or information documents to your customers, regardless of the channel of distribution you choose. This allows you to stay in close touch with your customers by adapting to their preferences in terms of communication, thereby improving their satisfaction level and building loyalty.

Read the 1st part: “Rethinking customer relationships with a user centric approach”