Failure to act can increase cycle times, severity

There are several reasons why digitization can be a big ask. Multiparty claims provide a good illustration, as they'll usually exhibit the following issues:

Adjusters are used to sending payments by checks.
Settlement documents are usually done with paper.
Dealing with a claim with multiple parties frequently involves sequenced legs of assessment and approvals typically done on paper.
Insured assets are not only growing bigger in number but also policies are becoming more bespoke and esoteric.
Financing partners such as mortgagees and lienholders often need to approve payments — and have proven to be a bottleneck at times.
Third-party vendors are typically needed to remedy damage, so they are involved in the payment workflow as well.
And finally, there is the monetary payout for losses to policyholders, which too many carriers still provide — somewhat incredibly — via a paper check by mail, despite this option being both expensive and an easy target for fraud.

In aggregate, this friction adds up to lots of time wasted, impatience and a hassle-ridden customer experience. This greatly increases cycle times and ultimately increases severity for carriers. And, importantly, customers find it simply inexcusable in a post-COVID environment when we have all grown accustomed to completing most financial tasks digitally with transparency at every step.

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