It’s no secret that insurers can be reticent to embrace change. But certain pressures are changing the claims landscape—and in turn, how insurers must process claims. What are these factors? How do they change the claims function? And perhaps most important, how should insurers react?
Three Key Factors Changing the Claims Landscape
As technology, cultural and economic changes coalesce with the claims function; insurers must not only understand the tides of change, but respond to them. In particular, they should focus on:
- The changing landscape. Consider: privacy concerns about using personal data posted to social media channels; greater emphasis on profitability, as low interest rates persist; and catastrophic events such as Hurricane Sandy that put insurers—and their responsiveness—to the test.
- Lifestyle trends. Dramatic shifts in the expectations and behaviors of the workforce and consumers mean that insurers must adapt to new ideas of work-life balance, collaboration, virtual workforces and increasing openness to a sharing economy.
- Technology trends. Increasing technology adoption places emphasis on creating seamless experiences over multiple devices and channels. Insurers must be aware of emerging interfaces, such as voice and image recognition, as well as virtual environments to enable collaboration.
In the not-so-distant future, these three factors will result in changes to claims technology—more intuitive, more seamless, more effective than what is in place today. Stay tuned. Next week, I’ll describe what that might look like.