Defining a 'new normal' for insurance service
As P&C insurers manage claims in the post-pandemic environment, they will need to utilize their digital assets.
No one could have predicted the global coronavirus pandemic or its impact on business and everyday life. The COVID-19 crisis changed how people work, study, shop and make decisions, affecting every business in every sector in some way.
For property and casualty insurers, COVID-19 has triggered a shift in claims away from automobile and homeowner policies as people followed stay-home mandates. However, as workers return to work in the midst of continually increasing numbers of COVID-19 cases, there is the expectation that insurers will see an increase in workers’ compensation claims. Shifts in how insurers do business are also on the horizon, and their ability to adapt to the new normal is rooted in how successfully they have on-boarded technology into their operational models.
Before the pandemic hit, P&C insurers were already seeing progress with digitally-enabled infrastructures designed to support a distributed operating model. With the onset of the pandemic, many insurers relied on technology like cloud-based interfaces and digital processes, enabling them to work more efficiently and stay in business during an unprecedented time.
The COVID-19 pandemic proved to be an opportunity for insurers to recognize the impact of digital technology on a new level: What is working, and how can it be improved?
Consider these questions as your business moves forward into the post-pandemic environment:
- How is productivity maintained or improved?
- How can customer service be more efficient and competitive?
- What technology is still needed to support the workplace operating model going forward?
How the pandemic will define the new normal
As is often the case with technology adoption, people want optimized services and solutions that offer the same convenience and user experiences as online shopping. The pandemic has shown businesses that everyone, including employees and customers, can adjust to using available or new technology that previously may not have been fully utilized or implemented.
Businesses and customers have seen first-hand how technology can drive efficiency and productivity without a loss of authenticity. For example, as physical buildings were closed, many insurers provided mobile and debit card disbursements, replacing paper checks. Video-based adjustments on property claims were used instead of in-person, on-site field staff inspections, and personal videos from a claimant’s mobile phone served as an acceptable format for property claims. Going forward, group business carriers will use interactive video to handle telemed and workers’ compensation claims, and online occupational therapy will include the Internet of Things (IoT) augmentation.
Under the demands of a new COVID ‘reality,’ customers and insurers have seen in practice that productivity and efficiency improvements are possible and often easily implemented. By fully embracing the available digital technology, insurers can exceed their customers’ expectations of easy self-service options and quick on-demand answers, while also streamlining their businesses.
Artificial intelligence and data analytics
As insurers consider the technologies that were successful during the pandemic, they must continue to get the most business value from AI and leverage the mountains of data collected by telematics, video, chatbots and more. AI and data analytics do increase workplace efficiency and productivity with automated claims processing, faster underwriting and better fraud detection. Drone technology uses AI to assist with damage analysis and pay claims faster.
From the customer end, AI ensures high-quality customer service and experiences with interactive self-service options, chatbot support, personalized product recommendations and faster claims processing. Building and refining all aspects of AI and data analytics will further enhance the customer experience, both to adjust for today’s pandemic and to help prepare insurers for a post-pandemic future.
Video and telematics
The move to social distancing while also performing routine business tasks has taken digital technology to new levels in the insurance industry. As remote work becomes more commonplace and the demand for pay-as-you-go insurance increases, telematics is becoming even more essential in providing insurers with valuable, real-time intelligence. For example, home deliveries for consumers have increased exponentially, putting high demands on the fleet industry, which relies on telematics to ensure timely deliveries and business continuity.
As more people have remained at home, and some continue to work from home virtually, the IoT will play an important role as insurers look to offer consumer discounts in exchange for valuable intelligence. IoT helps connect the digital world with the real world to create better outcomes. For example, group benefit providers looking to enable back-to-work capabilities can enable wearables from watches to vests to track movements and vitals to aid in no-touch recovery therapy. As the industry matures, current game consoles will begin to serve a parallel purpose in helping IoT and sensory in many forms of rehabilitation therapies. Exercise and movements are tracked interactively with the occupational and or physical therapist working in a video IoT environment.
The move to digital began long before the pandemic, but COVID-19 has forced customers and insurers to test existing technology boundaries with notable success. With the future unknown, one thing is clear: technology will be an essential part of business. Insurers must be prepared for current and post-pandemic shifts by leveraging their digital technology strengths and closing any technology gaps in continuity plans.
From automation to remote access capabilities with AI, IoT, telematics and other digital technology, insurers must take a deep look at their technology investments for continuous, streamlined business operations, cost management and customer loyalty. P&C claims will continue, and customers will expect rapid, high-quality services enabled by automation and digital engagement.
Ben Bengtson (Bengt.Bengtson@cognizant.com) is senior vice-president and global leader, insurance at Cognizant. He has over 30 years’ experience advising business and technology executives in the insurance and financial services industries. Michael Clifton (Michael.clifton@cognizant.com) is senior vice president and global leader, insurance at Cognizant. He brings extensive experience in driving innovation and change for business transformation.
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