The claims process is complex. Alongside all the information that must be collected and communicated to various stakeholders, there is also the sense of urgency to make the customer whole again. In that rush to resolution, mistakes can be made, whether in recording and reporting or in the communication among brokers, agents and underwriters. A lack of standardization across processes can introduce even more problems.
These mistakes and miscommunications only serve to derail the process, leaving insurers wondering what they can do to overcome their issues and better streamline claims processes. "Along with the rising number of claims filed and a shrinking claims-handling workforce, we can see why the race is on to find new ways to optimize claims management," says Bryan Johnson, COO and Director at Johnson Claim Service, a Davies company.
Johnson notes that the rise of AI (artificial intelligence) and automation is removing many of the common mistakes that keep insurers from effectively handling claims and, ultimately, improving the customer experience.
A suite of tools to streamline claims management processes
In this fast-paced world of claims management, technology can play a pivotal role in optimizing processes. In fact, integrating different technology systems and analytics helps constantly improve the process.
Johnson points to automation technology as an example, which can reduce human labor and enhance accuracy and data integrity for tasks such as claims intake and document processing. AI can personalize the claims journey and handle inquiries. AI and data analytics make claims management more efficient by predicting outcomes and spotting trends, and fraud detection systems are vital in preventing losses.
A claims management system may become necessary to leverage the various claims management tools efficiently, as it helps manage and centralize all aspects of the claims life cycle, from creation to settlement. Additionally, investing in a customer relationship management solution can enhance client interactions and accessibility.
Johnson also says that optimizing claims management is a team effort, going beyond technology solutions. "Your strategy to optimize claims management processes must be a collaborative effort," says Johnson. "To refine processes and ensure claims management is run smoothly, insurers should invest in staff training and support, and designate someone to oversee and enhance claims processes. Conducting regular audits will ensure you're on the right track."
Keeping the customer informed
While many technology processes are designed to help the team run more efficiently, they can also assist in keeping the customer informed. Johnson notes that feedback from customers is important, and tools such as a customer/client relationship manager can enhance client interactions and accessibility.
"The insurance industry is competitive, and insurers are often differentiated by customer service. It's imperative that they are able to resolve claims quickly and accurately to keep their customers satisfied," says Johnson.
In the quest to optimize claims management processes, it's clear that technology is no longer optional. Embracing automation, AI and other tools, as well as emphasizing staff training and support, will put today's insurer on a clear path to claims efficiency, while also instilling customer confidence and satisfaction thanks to more accurate claims resolutions.
To read more from Davies on claims management, click here.
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