Current technological trends like Big Data and Analytics, Blockchain, and the Internet of Things are causing a lot of disruption in the insurance industry. These technologies are radically changing the way the industry functions. Let’s take a look at the key trends in the industry, discuss the challenges facing the industry, and then see if it is possible to identify the most important.
Each industry has its leaders, and every industry has its laggards. The insurance industry is no exception. Some insurers have the resources to use digital technology to improve their operations and make them more profitable.
- Online retail sales models allow you to offer personalized products and new models to meet customer needs.
- To ensure they stay on top of technology trends and take advantage of the Internet-of-Things to adopt connected sensors and devices for loss prevention and better pricing in property, casualty, and life insurance, technology players should partner with them.
- To protect their sensitive business and personal data and to comply with privacy regulations, they should establish a cyber-security plan.
- Cloud computing, AI, and automation can be used to increase speed and flexibility, and to settle claims quicker to provide better customer satisfaction.
- Advanced analytics can be used to gain strategic insights, plan for future business offerings, and create competitive advantage.
- Blockchain technology can be used to add “smart contracts” and secure, decentralized data processing, collection and dissemination to their processes.
These strategic initiatives are sufficient to allow companies to be market leaders and eventually, to succeed in the industry. How can insurers prepare for the changing demands of the industry in terms of channel expansion and business model development? How can insurers meet the needs of tomorrow while still meeting today’s expectations? This post aims to argue that insurers fail to recognize the importance and necessity of claims management for their businesses, even though they are focusing on other strategic imperatives. Let’s discuss why we believe so.
Customers are happy when they receive a prompt and satisfactory claims settlement experience. However, customers tend to be very unhappy and post negative feedback online when their claim is denied, delayed or disputed. Although claims satisfaction is a critical part of any insurer’s overall customer relations management challenge, it is still a work in process for most. Instead, they should pay more attention to customers and look inward as they investigate the causes of customer dissatisfaction.
- Customers feedback and satisfaction with the claims settlement process and filing process are important factors for insurers.
- Insurers must collect customer feedback, factor it in to the way they operate, and then question the clarity of the sales pitch and determine if it was rejected.
- They should pay attention to how their reputation is in this critical area of customer satisfaction. This could affect their ability to retain customers.
- Remember that customers who are unhappy with their policies will not return for more coverage.
- Agents who have too many customers voicing their disapproval of an insurer’s claims settlement process tend not to win business.
- Smooth customer service must extend to claim handling. This will ensure that claims filling is a seamless process.
- Technology can be used by insurers to offer more options for filing claims, including uploading photos and videos.
- Claims handling efficiency is increasing as algorithms are able to detect fraudulent claims faster. Data-driven claim prevention can reduce costs and provide value by predicting risk and reducing premiums.
Insuring companies can be too strict or suspicious when trying to balance the delicate task of identifying fraudulent claims and paying legitimate claims. This could lead to a bad relationship with customers. However, they should not be too strict or suspicious in their handling of fraudulent claims. They can still trust customers and approve every claim with a gentle touch. Any unfairness, real or imagined, could affect whether a policy is renewed or our online reputation, or whether the insurer faces a legal dispute in court. Insurers work hard to find the right technologies to increase their distribution channels and create an optimized customer experience. However, they must not lose sight of the importance to eliminate fraudulent claims from their priority list. We believe that claims management may be one of the InsurTech priorities in the insurance industry. What do you think? Send us your thoughts and ideas.
Prime insurance solutions offer comprehensive, cutting-edge analytics. Our experience has been instrumental in streamlining existing business processes, such as claims processing, enrollments, customer service, and claims handling. We are a trusted partner within the insurance industry.
