I’ve spoken before about consumer-driven innovation. Changes in consumer behavior, coupled with emerging and disruptive technologies, are changing the way that insurers interact with their customers. And in the area of claims, where the insurer-customer relationship is truly tested, customer expectations for claims processing and payment must be met—and exceeded.
In an article for Insurance & Technology, I explain that claims processing is an opportunity for insurers to create a competitive advantage, through exceptional customer service and speedy claims resolution. Furthermore, it offers insurers an opportunity to improve operational efficiency.
Specifically, there are four areas where insurers should focus their efforts:
- Mobility offers a tremendous opportunity to improve service while lowering costs. Think of a mobile device as an investment—by the customer, no less—in a sales and service channel.
- Collaboration between experts, adjusters and insurers is critical to getting the right information to the right people, in a timely manner.
- Analytics can perform high-speed routing operations so that claims are dealt with in the most efficient and appropriate way possible. Fraud detection is greatly improved by analytics. What’s more, analytics and business rules, applied during the application process, can improve underwriting and head off problematic claims before they occur.
- Core systems modernization must include flexibility so that insurers can deal with emerging technologies and minimize the cost of future upgrades. A modular approach to modernization can help ensure success.
By innovating the claims function, insurers can improve operational efficiency and customer service, thereby creating a competitive advantage.
To learn more, read my article, “4 Key Areas of Claims Innovation,” in Insurance & Technology.