In today's world, either a business moves with the wave of technology or goes old school with endless paperwork. We are seeing the insurance and claim industry make a radical shift towards a digital shake-up. As existing insured customers have ushered into the digital era of new software with built-in data and analytics, Insurers and claim companies are just starting to catch up with the demand of the paperless digital age. We are continuously connected to our cars, smartphones, innovative home solutions, and AI (Artificial Intelligence). Insurance companies now use digital apps, which has changed the process completely. Through the use of chatbots for buying insurance, creating a policy, or filing a claim, insurance companies and their clients can rely on a simple, faster, and smooth experience. This approach is no longer a tedious and frustrating process for traditional insurers.
Technology Reshaping Operations
Applications like Lemonade and Root are fast growing as they offer a faster turnaround time on the application process and at reasonable costs. Platforms like Insurify allow customers looking for protection to compare insurance companies and prices. Not long ago, you had to call many insurance companies to get their quotes for comparison. Now, it can be activated by the click of a button.
For decades, claim companies' operational functions have technically operated independently. With technology, claim companies can become client-centric, digitally-enabled organizations that excel in the foundational areas of claim efficiency, effectiveness, and with outstanding customer service. Technology holds tremendous potential for the property and casualty industries.
Transformation of a successful digital claim
To add value to the claim functions and see a successful digital transformation starts with developing a proposition that sets a high-level aspiration and pursuing end-to-end digitization of the customer’s journey. AI and digital technology can captivate the user experience by developing and integrating the claims ecosystem with a new digital operating model.
Five tips for successful digital claims transformations:
1. Value-added proposition for digital claims
Insurers should adopt a faster, analytics-driven approach to claims handling and fully automate the claims handling procedures for clear and straightforward cases. In addition to working with the insured to prevent losses, insurers should provide services that add value to their clients and continuously draw feedback to improve service offerings, usability, and performance.
For example, Lemonade redefines customer experience with an innovative, chatbot-based FNOL system (First Notice of Loss) that creates automated claims payouts within seconds.
2. End-to-end digitization of the claims
There are no fast-track methods or quick fixes in ensuring client satisfaction in any business. However, successfully developing an efficient digital solution to your current claims functionalities involves considering the process from a insurers and insured’s perspective and optimizing a back-office process that provides simple and faster claims services.
Satisfaction surveys in claims show the desire for a fast and intuitive system that is transparent in its process and makes it easy for both the insurer and the insured. Automating claims segmentation and digital claims status tracking can reduce redundancies in the process for both the insurer and insured because they will have easy access to information and analytics.
Some changes in technology are not new but have proven their functionality in the insurance and claims world.
Texting or SMS applications is new in the world of insurance claims. Insurance providers are checking on policyholders in the aftermath of a disaster. A platform like HiMarley lets you send mass texts as an email would.
Drones are a fairly new method of taking footage from above to assert and access the insured property.
Smart Car Technology helps auto insurance companies to track a drivers’ driving behavior with smart in-car devices.
To determine the insured’s journey from start to finish and know the best way digital technologies can add value to their claims process, have a thorough group of stakeholders evaluate all of the user journey steps for the insured and insurers. A few things we suggest evaluating are:
- Product Simplicity - A carrier should simplify products and reduce product generations to ease the fully digital customer journeys. Complex details that include a lot of specifications can create dissatisfaction and barriers.
- Customer Self Service - Digital tools like FNOL, online scheduling for claims adjuster appointments, or an online chat with a claims handler halfway through the process can help address questions or concerns quickly and save a lot of time for claims adjusters, sales, and customer support representatives.
- AI Management - With the help of AI, a digital evaluation can help identify and determine the best flow and process for the next steps on your specific claim, ultimately speeding up the claims process. There are two types of claims automation:
Process Automation: uses software to handle every simple task more quickly and with fewer errors and the ability to detect patterns in data. When auditors detect a fraudulent claim, they must flag it in the system.
Smart Automation: Leverages AI for transformative potential and plays a supporting role to the claims expert across a wide range of activities. Based on the claim’s characteristics, the AI might automatically suggest relevant case law.
- Frontline and Back-Office Automation Processes Digitization - Frontline simplifies manual processes like tablet-based calculation tools for home damages and helps claims adjusters estimate the value of losses faster. Back-Office automation significantly benefits the customer in faster claims processing.
- Communication - Providing both the insurer and the insured with the relevant information in the digital channels offers a sense of control. The quality of communication can create awareness and usage of digital self-service tools throughout their journey.
By examining these areas, claims functions can start to rethink the claims user journey and back-office processes. Leaders in the Claims business should prioritize these digital assets based on their value to their clients journey.
As technology progresses for the better in the claims industry, there are also risks in implementing technology solutions if not properly executed.
• Mismanagement: Without proper planning, projects can fail to meet the initial blueprints like staying within the budget, under-delivering as expected, and lacking user-friendly channels.
• Misapplication: The idea that AI is a one-stop solution for any technical difficulties the insurer may face is a misconception that many will agree with. Constant maintenance and evaluations of processes and systems are crucial to delivering success.
Looking to get started with technology in claims as a service? With Claims as a Service, Hausch & Company can build a technology bridge to help you improve efficiency. Here are 3 steps to getting started:
1. Determine The Goal:
Set a measurable goal you can monitor. Know what you are trying to accomplish before you start.
2. Evaluate Technology Impact:
Who: Users who will use the technology can be the insured, service providers, adjusters, or other experts. What: List claims artifacts, such as photographs, measurements, storm reports, and accident reports. Impact: Map the impact to Reporting Claims, Adjusters, Evaluators, Evaluation, Supervision, and Payment Processing.
3. Implement a Technology Bridge Pilot Program:
Starting with a pilot program allows you to test the waters and gather information for successful large-scale implementation. Hausch & Company recommends rolling out the implementation through three tiers of claims: Fast Track Claims, Intermediate Claims, and Catastrophic Losses.
You can learn more about our technology bridge on our website.
Final Thoughts
At Hausch & Co, we understand the importance of technological advancements in today's world, and the relationship between the Insurer and the claims company is about truly enabling innovative customer journeys through easily accessible and faster claims processes. With the tools available, we continue to stand in the gap for a smooth transaction from the time you start your claim. For more assistance, Contact us today for a consultation.