The insurance industry is undergoing many changes, driven by current technological trends such as the Internet of Things, Big Data and Analytics, Blockchain, which are changing the way we operate in a dynamic and irreversible way. Let’s take a look at the major trends affecting the industry and discuss the different challenges that drive current InsurTech priorities and see if we can call them all the most important.
Each industry has its own leaders and laggards and the insurance industry is no exception. Deep pockets help some insurers take advantage of digital technology to change the way they work and:
- Provide new models and customized products to meet the changing expectations of customers, driven by online retail sales models.
- Partner with tech players to keep up with rising technology trends and take advantage of the Internet of Things to take connected sensors or devices, collect data to prevent losses, and use better pricing methods on property and victims, even in life. as health insurance.
- Implement a cybersecurity strategy to protect sensitive personal and business data stored in them and to comply with privacy regulations.
- Take cloud computing, AI and automation to improve speed and flexibility and settle claims faster to provide better customer satisfaction,
- Use advanced analysis to gain strategic insights and proactively plan future business offerings and gain a competitive advantage.
- Consider the use of blockchain technology to add “smart” contracts and secure, decentralized data collection, processing, and deployment to their processes.
Are these strategic initiatives enough for the companies they take to have industry and market leadership and ultimately success? What capabilities do insurers need to meet the demands of the industry, in the expansion of channels or in the development of business models, as they evolve? How can insurers prepare for tomorrow’s claims, even if they meet today’s expectations? The purpose of this post is to ensure that many insurers do not recognize the importance of claims management for their business, even though they are focusing on many other strategic imperatives they face. Let’s explain why we would say that.
It’s an open secret that customers are always happy with a good claims settlement experience, but they feel very upset and start posting negative feedback online when their claim is delayed, discussed, or rejected. Although satisfaction of claims is a very critical component of the overall challenge of managing the insurer’s customer relationships, it is only the work done by most of the current ones. Instead, they need to pay attention to customers and also look inward, as they delve deeper into the causes of customer dissatisfaction:
- Insurers should pay close attention to the level of customer feedback and satisfaction with the claim submission process and settlement experience, especially when they are excluded.
- Insurers need to take customer feedback and consider how their processes work, and they should also question the clarity of their sales themselves, and see if the claim is fairly dismissed.
- They need to pay close attention to the customer in this key area of customer satisfaction, which can affect their ability to sustain the customer.
- It should be remembered that dissatisfied customers never return for additional coverage or another policy.
- Agents who find too many customers against the settlement process of the insurer’s claims also distance themselves from the business.
- The problematic of the customer experience needs to be extended to claims management as the fulfillment of claims becomes a smooth process.
- Insurers can use technology to provide more opportunities to file a claim, including uploading photos and videos, with greater speed and accuracy and reduced contact points with humans.
- As algorithms make it easier to detect fraudulent claims, the handling of claims is improving in efficiency. Prevention of data-driven claims can help reduce costs and provide value by anticipating real risk and reducing premiums.
By managing a delicate balance between identifying fraudulent claims and paying legal ones, insurers can create a negative relationship with the customer by being too strict or overly suspicious. But that doesn’t mean they can be trusted and continue to accept all claims in a good way. Any disloyalty, whether actual or alleged, may determine whether the policy is renewed or whether it suffers from our online reputation, or whether the insurer may have legal action in court. Even insurers work hard to identify the technologies needed to expand their distribution channels and ensure optimized customer travel; they cannot lose sight of the importance of removing fraudulent claims from the list of priorities. Therefore, we believe that claims management can challenge the priorities of the InsurTech insurance industry. What do you think? Please write and share your thoughts.