How to leverage claims technology to achieve speed and customer engagement

The current standard for commercial insurance claim processing is characterized by multiple systems, multiple steps, and significant human intervention. The use of technology and innovation provides the opportunity to simplify the entire claims process. (Photo: Nuthawut / Adobe Stock)

The insurance industry is undergoing a slow digital transformation, with the personal line insurance sector moving a little faster to adopt technology and technology solutions than commercial insurance companies.

But whether it’s a complex or simple claim, customers expect to experience up-to-date claims that match how they handle other transactions, from online banking to grocery shopping. They want more access to the claims process, fast claims settlement, and a smooth and efficient process.

However, when disaster strikes, resource provision issues can make it difficult for commercial insurers to meet their customers’ expectations for speed and efficiency. The introduction of automation for commercial claims can balance the digital transaction with the human touch.

An appetite for technology?

One of the drawbacks for commercial insurance companies is the unwillingness to invest a large amount of money in modernizing the claims process. Insurers prioritize how to sell more insurance, maintain premiums, or retain customers. There does not appear to be the same desire to invest in technology that will speed up claims processing and provide more control and engagement to the customer. Whereas a $18,000 business stop claim might be at least For an insurance company, this claim is incredibly important for a single business that needs $18,000 because it shuts down for a week after a catastrophic event. This employer wants to move this claim through the process as quickly as possible.

The current standard for commercial insurance claim processing is characterized by multiple systems, many steps, significant human intervention and deliveries, slowing down the process from the time the insurable event occurs until the customer receives a payment. The use of technology and innovation provides the opportunity to simplify the entire claims process, including:

  • initiation of the claim and the arrival of the customer;
  • Provide a platform for claim documents;
  • Use the same platform to manage claim status, submit supporting documents, and issue automatic updates;
  • Provide a simple control panel for calculating and displaying financial damages; And
  • Make a final decision and confirm the settlement.

Linking this system to an automated payment gateway makes the claims process more effective and efficient while enhancing customer satisfaction.

Claims management 24/7

Insurance clients like to have their claims handled at their convenience – day, night or weekend. The human factor and limited availability of insurance professionals can slow down the process in several ways:

  • An officer with dozens of claims for processing;
  • Limited working hours and restricted schedules for insurance employees; or
  • An email that is not answered because someone is out of the office, has mediation, training, or is busy elsewhere.

These bottlenecks can be removed and eliminated through self-service, on a claims platform focused on on-demand technology. Such a technological solution will not only digitize the already existing analog process. It can give the claimant more control over the claims process and shorten the time between the insured event and payment while maintaining necessary compliance and due diligence. Making the claims process more efficient may also relieve insurance professionals of basic administrative and processing tasks, enabling them to focus on more complex claims issues.

The right technological solution can help a company solve the talent problem faced by all sectors of the economy. Since many steps in the traditional claims process require human intervention, the right platform can streamline the process through automation while bringing consistency to the claims processing journey, regardless of talent shortages. When a claim requires further conversation or investigation, claims professionals can step in.

Choose the right solution

However, commercial insurers face the risk of overloading in technology selection. Commercial insurers are cautiously advancing in insurance technology, looking for an innovative technology to use as a testing ground for some uncomplicated property and casualty claims. Insurance companies have a variety of systems, which have grown through mergers and acquisitions, that do not necessarily communicate well with each other. Adding an in-house plug-and-play solution is usually not the right choice. Companies are likely to consider existing technology that has been modified to suit their specific strategic needs. Because of this need for a customized solution, more startups are entering the insurance market, creating new cloud solutions for claims that insurers can pull off the network and customize.

One way insurers can go wrong when choosing a technology solution is that the right stakeholders may not be involved in the decision-making or planning process. There may be a disconnect between what the company is trying to do in terms of efficiencies and money savings, and the experience of employees and departments who are actually using the new system.

Over time, commercial insurance clients will become increasingly comfortable with automation. Appropriate use of insurance technology will differentiate insurance companies from one another as they struggle for renewals and new customers alike.

Currently, early adopters of automation for commercial claims are balancing both a digital solution and the human touch.

Simon Audi Partner at Baker Tilly. He works with insurance companies and lawyers in North America, South America, Europe, Africa, Asia and Australia.

Bernard Reagan He is the lead in global forensic consulting practice at Baker Tilly. He specializes in the application and management of computer forensic operations, including cybersecurity and digital forensics.

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