With nearly $9 billion in revenue, nearly 7 million policyholders, and over 14,000 agents, Erie Insurance ranks in the Fortune 500 and is one of the largest insurers in the United States. Amid industry-wide inflationary pressures, the rising frequency and severity of natural catastrophes, and profound changes in customer expectations for digital service, Erie earned the top ranking in last year’s J.D. Power Property Claims Satisfaction Survey. The secret to its digital-age success is nearly 100 years old.
"It's above all in service," says Srinivasa, citing the company's founding principle: Providing policyholders with as near-perfect protection and as near-perfect service as is humanly possible—and to do so at the lowest-possible cost.
While the industry has spent more than $8 billion in digital transformation over the past few years, overall claims satisfaction is at a seven-year low. As a growing number of insurers are learning, the key isn't merely to streamline processes and deliver a sleek digital experience, as crucial as these may be. It's also to free up humans to provide the empathetic service customers need during what can be a time of tremendous financial and emotional stress. By some industry estimates, poor claims experiences may put as much as $170 billion in premiums at risk within the next five years.
For these reasons and more, Srinivasa and his team launched a transformation initiative for the company's claims operations, anchored by a maxim from Erie founder H.O. Hirt: "Never lose the human touch." By moving operations to a modern cloud platform, Erie has been able to combine the power of digital with the human touch to enable the company's "all-in service" mantra.
At Erie, the goal isn’t to leverage digital technologies to replace humans. It's to empower them. As Srinivasa puts it, "It's more about 'augmenting' our humans to become smarter." This technological prowess also enables Erie to navigate what he calls the “50-5 Phenomenon.” "What used to take 50 years to change, now it's happening in five years," he says, adding that before long, five years' worth of change will be crammed into one.
When it comes to striking the right balance between digital and the human touch amid rapid change, data accuracy, privacy, and security are paramount. According to a recent MIT Sloan study, inaccurate data alone can cost carriers up to 25% of their revenue. In a recent interview, Srinivasa shares insights on Erie's claims transformation and his data management philosophy, which is built around the acronym SPIRIT—as in "S" for security, "P" for privacy, "I" for impartiality, "R" for reliability, "I" for integrity, and "T" for transparency. Listen now.