As attackers continue to hunt for customers, insurance companies should integrate digital technologies into their operations. Digitizing the claims function in the insurance industry holds great potential. Digital transformation in insurance is about becoming a customer-centric, digitally enabled organization that excels in efficiency, effectiveness, and customer experience. This post examines the major issues that insurance companies must consider in terms of claims transformation:
Data and Analytics
Insurance companies have been aware of data and analytics to the claims function. However, these days, they should consider how new data sources can help make their claims operations more accurate and efficient. For instance, location-based and social media platforms can provide them opportunities to provide timelier and more relevant products.
Insurers can lower the internal time required for evaluating and data for high-volume, low-value policy decisions. This will help them provide funds to customers quickly with a minimal hassle. Also, this approach minimizes the internal resources required to process low-complexity claims, allowing for the re-allocation of resources to other vital business areas. With access to more robust claims handling data and analytics processes, insurance companies can offer a clear line-of-sight on the total cost to serve, leakage costs, and other areas. Insurance companies can build an auditing model to better control operating costs and expenses, increasing efficiency and lowering combined ratios. As a result, they can provide more competitive prices.
Today, there are more claims professionals than before. The modern workforce should be innovative, collaborative, and customer-oriented. They should concentrate on activities where they can offer value-added services and drive results. They are expected to operate in a highly distributed fashion that makes it important for them to collaborate between claims professionals, vendors, suppliers, and customers.
Insurance companies today need agile claims architecture. Since it is not possible to predict the future, technology should be able to integrate with other systems and be configurable. Insurers must ensure their claims architecture is future-proof and lets them capture and respond to data in real-time for improved customer interactions, ensuring positive claim experience for a policyholder.
Digital processes and online customer interactions are the reality and the expectation of today’s customers. Insurers can modernize the customer-facing part of the claims process to efficiently deliver a seamless response.
By examining each of these issues, insurers can start to rethink their customers’ claims journey. Also, they can develop a platform that improves operational excellence.