How automation can boost human connection during claims
Insurance policyholders now equate faster, more personalized claim experiences with premier carriers.
As many insurance companies know, a slow claim is the fastest way to strain the relationship between the carrier, the agent and the insured.
With rising customer service expectations across the industry, policyholders are equating faster, more personalized claims experiences with premier carriers. For insurers seeking a competitive edge, automation allows insurance companies to increase retention and customer satisfaction, even after the insured experiences a loss.
It’s no longer enough to resolve claims quickly. Today’s customers are seeking more human interaction during what is typically a stressful experience. Carriers that implement automation can impress policyholders with their efficiency while also measuring their return in terms of a more reassuring, personalized customer experience.
Beyond traditional RPA, cognitive process automation (CPA) implemented within the claims department creates value in company time saved, employee engagement, and — most integral to the carrier’s success — customer satisfaction.
Tech makes adjusters accessible
Cognitive process automation is an ideal solution for bottlenecks within the claims process. Unlike traditional robotic process automation (RPA), it doesn’t require structured data. Because these Bots incorporate Optical Character Recognition (OCR), Natural Language Processing (NLP) and Computer Vision, CPA can comprehend data even if that data isn’t always presented in the same repetitive format. This is ideal for property and casualty claims processes, where information is collected from a variety of sources.
Using CPA, these Bots can automate entire processes within the claims department, and they scale as needed for higher influxes in claims. Carriers are implementing Bots that can work up to 8x faster than humans, with up to a 95% straight-through processing rate — meaning that 95% of the process requires no human touch. Whether the Bot is deployed to send communications like the FNOL to the policyholder or whether the Bot is implemented within the processing department to approve payments for claims, this scalable solution allows carriers to leverage their most important asset: their employees.
This is especially helpful during catastrophic claims events, where manpower can be short. Instead of relying on human employees to work faster, these cognitive Bots can scale themselves to meet demand, and administrative employees can spend more of their valuable time supporting the claims team. Additionally, the carrier retains more control over the processing timeline.
Automation is invaluable when implemented in time-sensitive processes. There’s a clear cost-savings benefit when administrative claims work can be delegated to Bots, and employees can devote their limited energy to more intensive job duties.
However, the primary benefit of automation throughout the claims process is that it creates more opportunity for human interaction. Bots can complement the efforts of FTE, but carriers should re-purpose the time saved to create a more high-touch, personalized experience for each policyholder.
Claims & customer service
For better or worse, policyholders are equating the claims experience with customer service. And according to Microsoft’s Global State of Customer Service survey, 58% of customers will sever their relationship with a business if their expectations aren’t met.
The policyholder’s claim experience is heavily influenced by how quickly a claim is resolved. Fortunately, CPA can speed up claims processes by up to 800%, so efficiency is easily increased.
However, interactions with the designated claims adjuster are also vital to customer satisfaction. Attentive claims adjusters are more communicative and have more comforting conversations. They also detect discrepancies within conversation, meaning that miscommunication, frustration, and even issues with fraud are caught and resolved more quickly.
When claims departments deploy automation, the customer experience improves because it’s more personalized. Adjusters can focus on each claim and the policyholder who experienced the loss because they have more availability when repetitive claims processes are delegated to the Bot.
To policyholders, both efficiency and customer experience are important differentiators between carriers. With the insured’s expectations in mind, more carriers are analyzing where the claims experience should be more high-touch. Claims adjusters can share an overview of the claims process, follow up with the insured, and generally be more empathetic to the customer when growing stacks of paperwork aren’t looming overhead.
The return is in the retention
The cost of retaining existing business is generally less than acquiring new business, for carriers and agencies alike. When policyholder satisfaction is higher, so is customer retention.
CPA positively influences retention rates with faster claims processing, more engaged adjusters, and customer service. These Bots are easily accessible, and carriers that implement them provide a seamless claims experience for policyholders. Fortunately, this benefits more parties than just the customer.
When a carrier has a slow claims turnaround, or a customer has a frustrating experience following a loss, it reflects on the writing agent, too. Whether a carrier relies on captive or independent brokerages for new business, agents who rely on commission benefit from higher customer retention.
With higher retention, captive agents can focus on growing their book of business and independent agents don’t need to re-write existing policies. Even though the carrier is improving the customer’s experience, there are multiple parties left satisfied.
More than a fad
Digital transformation isn’t just a buzzword anymore. As the industry becomes more competitive, carriers that incorporate automation to improve the policyholder’s claims experience will retain more customers post-claim. Additionally, the increased efficiency and attention to detail position the carrier as a leading insurer in today’s market.
Insurance is more than a product or a contract. Carriers, brokerages and insureds all realize the value of empathy and human connection when a loss occurs. Claims departments that deploy CPA increase efficiency, employee engagement, and customer satisfaction, all of which benefit every party involved.
Chaz Perera (chaz@rootsautomation.com) is the CEO and co-founder of Roots Automation and a member of the 2021 NU Property & Casualty Editorial Advisory Board. These opinions are his own.
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