Can the Claims Challenge Existing InsurTech Priorities?

The insurance industry is witnessing many changes under the influence of existing technological trends such as the Internet of Things, Big Data and Analytics, Blockchain, which is changing its way of working dynamically and irreversibly. Let’s look at the top trends that affect the industry and discuss the various challenges that drive existing InsurTech priorities, and see if we can call the most important of them all.

Every industry has leaders and laggards, and the insurance industry is no exception. Deep pockets help some insurers take advantage of digital technologies to change the way they operate:

  1. Offer new models and individual products to meet the changing customer expectations driven by online retail models,
  2. Take advantage of the Internet of Things to adopt relevant sensors or devices to keep up with trends in technology and gather information to prevent damage, and partner with technology players to apply better pricing methods in life to property and victims. as health insurance.
  3. Establish a cyber security strategy to protect the sensitive personal and business information they store and to follow privacy rules.
  4. Adopt cloud computing, AI and automation to solve claims faster to increase speed and flexibility and offer better customer satisfaction,
  5. Use advanced analysts to gain strategic insights and proactively plan future job offers and gain a competitive advantage.
  6. Consider using blockchain technology to add “smart” contracts and secure, decentralized data collection, processing, and distribution to your processes.

Are these strategic initiatives enough for companies to take advantage of industry and market leadership and, ultimately, success? What opportunities do insurers need to prepare to meet industry requirements in channel expansion or business model development as they develop? How can the insured prepare for tomorrow’s demands if they live up to today’s expectations? The purpose of this article is to write that many insurers do not realize the importance of claim management for their business, despite the fact that they focus on other strategic conditions they face. Let’s explain why we say so.

It is an obvious secret that customers are always happy with a good lawsuit experience, but are very upset and start sending strong negative online feedback when claims are delayed, debated, or rejected. Claim satisfaction is an extremely critical part of an insurer’s overall customer relationship management problem, although it is one of the most common. Instead, they should pay attention to customers and look inward, as they deeply investigate the causes of customer dissatisfaction:

  1. Insurers should pay attention to customer feedback and satisfaction levels, especially when they are rejected, with the claim process and resolution experience.
  2. Insurers must take customer feedback and influence the rules of their processes, question the clarity of the sales area itself, and see that the claim is sufficiently rejected.
  3. They need to pay close attention to their reputation in this key area of ​​customer satisfaction, which can affect their ability to retain customers.
  4. We must not forget that dissatisfied customers never return for additional coverage or another policy.
  5. Even agents who find a large number of clients who raise their voices against the process of resolving the insurer’s claims tend to distance themselves from them.
  6. The integrity of the customer experience should also apply to the handling of claims, as meeting claims becomes a smooth process.
  7. Insured can use the technology to provide more options for filing a lawsuit, including uploading photos and videos, faster and more accurately and reducing contact points with people.
  8. As algorithms find it easier to detect false claims, they improve the efficiency of working with claims. Preventing data-based claims can help reduce costs and provide value by predicting actual risk and reducing rewards.

When managing a sensitive balancing act between the detection of fraudulent claims and the payment of legal claims, insurers can create a negative relationship with a customer by being too harsh or overly suspicious. However, this does not mean that they trust and gently confirm every claim. Any actual or presumed injustice may determine that a policy will be renewed or that our online reputation will be damaged or that the insurer may face litigation in court. Although insurers work hard to identify the technologies they need to expand distribution channels and ensure they create an optimized customer journey; they cannot forget the importance of eliminating false claims from the list of priorities. Therefore, we believe that the claim management can challenge InsurTech’s priorities for the insurance sector. What do you think? Please write and share your thoughts.

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