Insurtechs – Three Considerations When Implementing Self-Service Claims – Insurance Journal
This post is part of a series sponsored by CoreLogic.
Over the past year, online client demand has maintained a steep upward climb. Due to the pandemic, cloud and integrated technology capabilities have been expanded to support remote work models previously unavailable to insurance agents. And companies had to implement operational changes rapidly to navigate this drastically different landscape.
Insurers have had to redefine their client engagement strategy and accept that policyholders now expect digital interactions, causing insurers to re-prioritize their technology roadmaps, both in the short and long term. To meet these new customer expectations, carriers are focused on three main areas of change: online consumer engagement, technology capability, and operational alignment.
Online consumer engagement
For many carriers, the way insurance products are purchased and administered is not yet a fully online engagement model. Leading Insurtech startups set up their businesses in ways that ensure any policyholder interaction begins online, paving the way for a better customer experience. From shopping around for quotes and adding properties to a policy to filing claims through a self-service app, insurance companies that get this digital experience right will lead the pack. According to a 2021 J.D. Power report, satisfaction with the insurance customer service experience improved while overall satisfaction with the shopping experience declined as record numbers of insurance customers transitioned to digital during the volatile year. The study noted that tech-savvy mobile app users report substantially higher satisfaction overall, as mobile app usage increased 26% this year.
Winning Insurtech companies have implemented seamless workflow systems to automate the claims process and support a digital journey end to end from the beginning. These implementations have rapidly changed the insurance landscape. New technologies create a digital transformation that offers the accuracy, safety, and efficiency necessary to save time and money, ultimately creating a better customer experience while also improving the experience for agents.
One of the most promising Insurtech innovations is claims automation. Claims automation is the creation and application of technology to monitor and control the production and delivery of claims processes to all interested parties without the need for human intervention. This kind of software can provide step-by-step instructions for how and what to scope via a mobile phone or tablet. Using this technology, an adjuster can follow intuitive questions that guide them through appropriate photo-taking and scoping of the damage, ensuring critical claim documentation isn’t forgotten. Even new adjusters can document claim loss details efficiently and in a well-organized, uniform manner, reducing the amount of cross-training and onboarding time. This workflow can also empower them to get out into the field faster without time-consuming cross-training.
Finally, companies are investing in operational alignment, including digitizing first notice of loss (FNOL) and integrating technology into post-FNOL claim fulfillment. There is also a growing integration of data solutions and automation of validation processes with policy applications and other types of validation data sources.
And after the first notice of loss when the claim is in fulfillment, technology can help determine whether field inspection is required and automate approvals and supply chain appointments. Moreover, policyholders can interact with other parties on a claim by collaborating with suppliers and the carrier while providing real-time feedback indicating their satisfaction.
Self-service claims and claims automation are expected to become the standard for claims management and claims processing for many carriers. The existence of Insurtech startups and the transformational effects of the COVID-19 pandemic have played a significant role in moving insurers towards the digital landscape. The carriers focused on online consumer engagement, technology capability, and operational alignment are accelerating their adoption of digital processes with agents and improving the customer experience. For more information on CoreLogic claims solutions, please visit CoreLogic.com.
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