Claims management is a critical part of the insurance business. It is often the most stressful interaction that customers have with their insurer. It’s at this moment — when customers are at their most vulnerable — that the insurer must not only meet but exceed their expectations.
Claims management has faced most challenges that have contributed to poor customer experience which in return has led to the poor image of the industry and low penetration of insurance services. Some of the challenges in claims management are;
- Lag time
- Lack of accountability in the process
- Lack of communication between parties
- No effective collaboration
- Lack of a standardized approach
The claims process is not seen as revenue-generating, hence the insurance industry has a tendency to hold back on improvements and modernization projects. New technology advancements such as automation, artificial intelligence (AI), and advanced analytics have put many industries on their toes with customer experience being their major focus. This has then increased customer expectations.
Even though the insurance industry has been slow to change from legacy systems, a new generation of insurers and insurtech startups have defined their place in the market by using new technologies to reinvent claims management. They have developed applications that are seamless, omnichannel and offer real-time interactions integrated with the platforms they already use frequently connecting insurance players to their customers remotely.
They have moved the claims process from the back and front office into the digital space creating a connected, user-friendly claims experience that works faster, makes customers happier, and reduces claims leakage. Therefore, meeting the rising demand for faster claims processing and payments.
Automation has transformed tedious claims processes in the following ways:
- Improved efficiency and dramatically reduced costs
- Enabled customers to browse through options and file claims from anywhere, anytime
- Minimized fraud and enhance client satisfaction
- Speed and Transparency of the Claims Process
E-signatures will further advance the claims process. The benefits of e-signature can be maximized when it is deployed as part of a user-friendly digital journey. Insurers, customers and other intermediaries can sign documents, add attachments and provide information anytime, anywhere, and from any device. Payments of claims can also be done instantaneously where the damage can be assessed digitally.
This will:
- Reduce operational overhead
- Reduce error rates
- Reduce paperwork
- Improve productivity
- Improve claims experience
- Improve the customer experience.
Looking at the ways claims management has improved over time, we can say that digitization is the ultimate solution to poor claims management system.
