Using InsurTech to improve claims management

If insurance coverages were umbrellas, they would remain furled in closets until a claim was filed. While their availability for use would be reassuring to all members of the household, they would sit idly while waiting to spring into action.

It can also be said claims is the point at which an insurance policy and the coverage contained within manifests its value. Until then, an insurance contract is a promise to be present following an insurable event.

Typically when insureds file claims, they rarely involve their brokers to advocate on their behalf. This is a missed opportunity. They should count on brokers to help manage claims quickly, efficiently and intelligently. Insureds also rely upon carriers to honor claims within the terms and conditions of the policy in a timely manner, with the least possible amount of friction.

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A smarter way to work

From the filing of a claim to receipt of payment, we want the insured to rate the customer experience positively. The promise of InsurTech could loom large as we work towards accomplishing this goal.

Following are a few ways InsurTech can help to support the claims process as we head into an exciting, gradually evolving future:

By teaming technologies such as artificial intelligence and machine learning with advanced analytics, insurance industry strategic planners can thoroughly reimagine the claims quality audit process. In so doing, they could transform this otherwise back-of-the-house utility into a dynamic strategic business advantage.

As insurance industry strategic planners employ new technologies to automate and reinvent much of the quality audit and scoring process, they will be better able to identify both trends and possible friction points. As in all technological solutions, the goal cannot simply be a desire to cut costs by reducing headcount.

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Cutting claims staff to “serve you better” is the wrong strategy in a relationship business. The end game must be additive and not reductive. By giving rather than taking, strategic planners will ensure these new technologies complement and support the good efforts of highly trained customer-facing human claims representatives.

By helping to transform claims representatives and advocates from back-of-the-house processors into celebrated professionals, claims executives will be able to move beyond the random nature of traditional audits and focus on improving areas of the audit process through executive level attention. As part of the process, they can also zero in on issues requiring more training and coaching of claims personnel, which will help sweeten the customer experience.

Thanks to its potential to enhance the satisfaction and success of insureds when they file claims, InsurTech can further elevate the customer experience by increasing transparency and efficiency. Carriers will be able to employ automation, AI and advanced analytics to enhance the customer experience.

Legacy carriers, risk managers and brokers are increasingly open to the potential of engaging with InsurTech start-ups in areas that align with their business needs, including more intuitive and intelligent claims management.

Jenean Meier (jmeier@kmrdpartners.com) is a claims advocate at KMRD Partners, Inc., a nationally recognized risk and human capital management consulting and insurance brokerage firm located in the Philadelphia region serving clients worldwide.