Future success isn’t a great claims process, it’s a superior claims process

You could easily say there will be no shortage of claims process discussions at IASA 2019 this year. And if you did, you could be wrong.

There’s a good chance we’re not talking about the claims process enough.

For example, 90 percent of “highly satisfied” claimants indicated they would definitely renew their policy, according to recent research from a JD Power property claims satisfaction study. Great news if the majority of your customers are highly satisfied with your claims service.

If most have no particular opinion of the process – if they’re “okay with it” – then there’s a good chance they would consider shopping around for a new carrier. The same study found that 60 percent of respondents indicated they would investigate a new policy if they were indifferent or dissatisfied with the claims process.

To compete in today’s insurance industry ecosystem, your organization must have a superior claims process. It’s no longer good enough simply to have a great claims process.

Claims capabilities are a baseline need that drives customer retention,

not a differentiator that drives customer acquisition.

“This is a clear indication that executives believe a streamlined claims process is a must-have, not a customer delighter,” reads an analysis of the results of a joint Salesforce, Deloitte, Vlocity and Newsweek Vantage global survey of 300 C-level insurance executives. “In other words, claims capabilities are a baseline need that drives customer retention, not a differentiator that drives customer acquisition.”

Build your superior claims process by finding the right tech partners

The superior claims process is the claims process of the future. It’s an achievable challenge built on the back of the right technology partners.

Recently, EY shared its view on the capabilities insurers will need if they choose to build a smarter, superior claims organization, based on a research study focused on the future of claims operations. Those capabilities include:

  • The need to easily access the claims portfolio and customer data

To adjust a claim properly, adjusters must have access to all the information that relates to the incident. They gather information from various sources and locations, such as sensors and wearables.

Quite often, even requests become part of the investigation. In this case, correspondence and documentation of conversations with claimants, via email or phone, become integral to the claims process and consume a considerable part of an adjuster’s time.

  • Automated processes that reduce and eliminate less-complex tasks

Beyond offering adjusters easy-to-access information, insurers must reduce the number of manual steps in the claims process to expedite decisions and see that skilled adjusters aren’t saddled with tedious tasks. Integrating core claims systems, like Guidewire and Duck Creek, with the right content services platform provides insurers with the technology and tools the claims team needs to quickly and efficiently manage claims.

  • Fewer lower-skilled claims handlers, with a greater focus on complex adjusting skills

These employees will have more claims handling experience and analytical abilities, since the right content services platform, integrated with a robust core claims solution, will virtually eliminate low-level tasks. Insurers will recruit cybercrime and digital security specialists to help ensure the safe handling of customer information.

Meanwhile, technology will allow these experts to work remotely, expanding an insurer’s ability to hire the best candidates for the job, regardless of physical location.

The right information at the right time

Insurers must also develop a sustainable claims processing operations model that provides adjusters with access to the right information at the right time, including analytics and data. This will allow them to accurately investigate and settle a claim, increasing efficiency and reducing the risk of costly claims leakage.

In short, to build the superior claims process, insurers must rethink how – and whom – they invest in with respect to skilled teams and experienced professionals. Moreover, they must align with the right technology partners who can help them achieve this goal.

Want to discuss this topic further? Visit Hyland at IASA 2019.

Cara McFarlane

Cara McFarlane

Cara McFarlane is the global solution marketing manager for Hyland’s insurance vertical. Her mission is to effectively position Hyland as the leading content services platform within the insurance market by... read more about: Cara McFarlane

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