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Positioning Paper February 2020 Claims Handling 2.0 Our vision of passenger claim handling for airlines

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Page 1: Claims Handling 2 - Amazon Web Services · handling on a global scale . while considering different legislations/ particularities across countries. 5. The integrated business/IT approach

Positioning PaperFebruary 2020

Claims Handling 2.0Our vision of passenger claim handling for airlines

Page 2: Claims Handling 2 - Amazon Web Services · handling on a global scale . while considering different legislations/ particularities across countries. 5. The integrated business/IT approach

PwC ∙ CHS

Today’s situation & challengesAirlines are being confronted with an ever increasing number of passenger claims

A rising number of flight disruptions drives the volume of passenger claims – in 2018, eligible claims totaled >1bn € in Germany only

Claim agencies, such as Flightright, EUclaim, or AirHelp, lower the barrier for passengers to validate, submit, and enforce their claims

Unchanneled requests from passengers via web form, contact center, email, and letter create additional effort for airlines to process inquiries

As a result, airlines face additional handling costs and decreasing customer satisfaction on top of paying the compensation amount itself

2Source: IATA, PwC/CHS analysis

4bn €EC 261 compensation paid out p.a.

Page 3: Claims Handling 2 - Amazon Web Services · handling on a global scale . while considering different legislations/ particularities across countries. 5. The integrated business/IT approach

PwC ∙ CHS

Customer touchpointsHarmonize passenger touchpoints for the submission of claims in alignment with customer service strategy

Process landscapeOptimize business processes for claim handling with regard to process cycle time, flow/tact, and quality

Data availabilityProvide consolidated CRM data to allow swift and reliable claims processing at all relevant service points

Technological supportFacilitate IT systems that support the business process end-to-end and enable customized reporting

Workflow automationReduce manual process steps to manage, qualify, and settle passenger claims (i.e. automatic reimbursement in form of cash, vouchers, miles, or combinations)

Our ambition: fully automate claim handling to reduce costs for airlines, regain customer loyalty, and foster ticket salesKey success factors to establish a holistic claim management approach

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Page 4: Claims Handling 2 - Amazon Web Services · handling on a global scale . while considering different legislations/ particularities across countries. 5. The integrated business/IT approach

PwC ∙ CHS

PwC and CHS operationalize this ambition together from business and IT side

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Customer service strategyDefinition/ enhancement of customer service strategy with regard to claims handling

Business processesWorkflow and interface optimization under consideration of introduction of new IT tool

DataplatformIntegration of booking data and historic passenger records together with relevant flight information

IT systemProvision of SaaS system and frontend for service agents to steer and monitor the semi/fully automated, digital processing of passenger claims

Page 5: Claims Handling 2 - Amazon Web Services · handling on a global scale . while considering different legislations/ particularities across countries. 5. The integrated business/IT approach

PwC ∙ CHS

What are the tangible benefits for you?

Lead time / cost reductionReduce the lead time to process a claim by up to 90% and handle more claims in the same time

Workflow automationSemi to fully automate the handling process to give agents more freedom to support in critical/questionable cases

Customer recovery & salesRegain customer confidence and loyalty with a simple and transparent process (i.e. by performing payments in real-time) to foster ticket sales

New partnering modelsCounteract claim agencies and establish new commercialization models (i.e. by partnering with retailers to issue part of compensation in form of coupon)

Global reach & scalabilityCentralize claim handling on a global scale while considering different legislations/ particularities across countries

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The integrated business/IT approach of PwC and CHS enables airlines to drive down substantially the resources associated with claim handling and restore customer confidence/loyalty

Page 6: Claims Handling 2 - Amazon Web Services · handling on a global scale . while considering different legislations/ particularities across countries. 5. The integrated business/IT approach

PwC ∙ CHS

… with strong strategy-through-execution expertiseStrategy

development & execution

Growth strategies Portfolio optimization Market entry Innovation

Operational excellence & restructuring Marketing and

sales Service optimization Cost

improvement Supply chain

Transactionsupport

M&A Due diligence

PMI Divestments

Innovation management

Products and services

innovation R&D

effectiveness

PwC combines its global aviation expert network …

North America

250+South America

20+

EMEA

350+

50+Asia Pacific

… established and run by leading aviation attorneys

CHS is a specialized legal tech provider for airlines …

+

Your partners

Transportation, Aviation & Logistics

MaritimeSports, Media & Entertainment

EnergyInsurance

Real EstateCorporate Finance,

M&A

IP, IT, CommercialEmployment &

Labor LawPublic Law

Antitrust LawTax

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Page 7: Claims Handling 2 - Amazon Web Services · handling on a global scale . while considering different legislations/ particularities across countries. 5. The integrated business/IT approach

PwC ∙ CHS

We have extensive experience across various topics with system partners in the entire aviation industry

Civil Aviation Authorities

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Airlines Airports Air Traffic Control MRO Providers

ILLUSTRATIVE, NOT EXHAUSTIVE

Page 8: Claims Handling 2 - Amazon Web Services · handling on a global scale . while considering different legislations/ particularities across countries. 5. The integrated business/IT approach

PwC ∙ CHS

We invite you to come visit us in the PwC Experience Center Frankfurt for a discussion and a first-hand solution demo

Page 9: Claims Handling 2 - Amazon Web Services · handling on a global scale . while considering different legislations/ particularities across countries. 5. The integrated business/IT approach

PwC ∙ CHS

Your contacts at PwC and CHS

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Ulrich Steppler, LLMManaging DirectorPartner Arnecke Sibeth DabelsteinFrankfurt OfficeE: [email protected]: +49 151 55044275www.justclaims.eu

Matthias RiveiroPartner,Travel & TransportationFrankfurt OfficeE: [email protected]: +49 151 25665932www.pwc.com/de

Niklas SchemkenSenior Associate,Travel & TransportationFrankfurt OfficeE: [email protected]: +49 151 54743750www.pwc.com/de

Katja H. Brecke, LLMManaging DirectorPartner Arnecke Sibeth DabelsteinFrankfurt OfficeE: [email protected]: +49 151 55044262www.justclaims.eu