Time to move your insurance claims processing into the digital age?

As customer expectations change, the way you process claims should too. Here’s how to fix what’s broken.

As customer expectations change, the way you process claims should too. (Photo: Shutterstock)

For your customers, claims processing is what insurance is all about. It’s a key touch point in the customer life cycle, at a crucial time when they truly need you. Customers expect an efficient, quick and user-friendly response to their claims. And today, they also expect the process to be fully digital and as zero-touch as possible.

Many firms in the insurance industry struggle to meet these consumer expectations due to the fact that processes are still overwhelmingly manual. Whether the process is to fill out a claim form, obtain a damage assessment, or submit a police report, insurance processes still lag behind other industries in terms of digital adoption and the ability to complete tasks without a burdensome paper trail.

Claims processing challenges

There are a number of challenges experienced across the industry, irrespective of the category of insurance (automotive, homeowners, professional indemnity etc.). The impact of these challenges reduce the overall efficiency of claims operation processes, resulting in:

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The solution

These challenges have become an ingrained part of system processes and are increasingly difficult to remedy. One solution that has the means to systematically create an effective impact is a transformation to digital processes. A move from manual to digital enables insurance companies to operate dynamically, where they can address business requirements whilst simultaneously meeting customer expectations.

A number of digital solutions have therefore been developed that address these specific challenges currently experienced in the insurance industry. Here are the top three:

Related: 5 trends influencing P&C insurance purchases

Clearly, the transition to digital changes the claims processing equation. Self-service tools empower companies to resolve the simple inquiries that currently occupy too much agent bandwidth, leaving skilled personnel more time to address complex calls. Where self-service isn’t sufficient, collaboration tools can expedite the claim process.

Moreover, the combination of collaboration tools and smart digital forms can lower dependence on outsourcing for claims processing. Agents can assess claims more efficiently based on the greater quantity and better quality of data that customers can provide, giving insurance companies greater control over the process.

The bottom line

To a large extent, customers only contact insurance companies when a claim is being submitted – and at that time contact is intense and frequent. The implications for operations management can be dramatic, as the workload for both personnel and resources fluctuates dramatically during this process.

Converting to fully-digital solutions helps insurance companies stabilize the impact of claims processing, while enabling customers to achieve self-service resolution, or at least collaborate efficiently and effectively in more intense cases. The outcome is expedited resolutions of claims and more satisfied customers.

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Ori Faran, founder and CEO of CallVu, is responsible for steering the company’s people, product vision and projects. Faran’s experience includes a deep understanding of the customer journey and product deployment within global enterprise companies. Faran can be contacted at ori@callvu.com.