Future of claims has been saved
Future of claims
Digital claims processing: Hitting the reset button in insurance
Until now, failure to integrate cutting-edge technology or adapt to the increasing pace of technological change did not significantly affect profitability in the insurance claims process. But to meet changing customer demands in an increasingly technology-centric world, enhanced service delivery capabilities are now key to creating a nimbler organization that can quickly adapt in the face of continual change and uncertainty.
- Factors shaping the future of claims
- The insurance claims process: Core to the disruption
- Priming the digital claims processing service delivery model for change
- Join the conversation
Reset: Factors shaping the future of claims
Some see standard home and auto insurance policies as commodities, while commercial policies are perceived as more nuanced. In reality, the product itself is often less important than the end-to-end customer experience insurance companies create. Customer expectations and purchasing patterns have been evolving at an accelerating pace.1 At the same time, Millennials have become the largest generation in the workforce. Both of these significant shifts have created new needs that must be assessed and met.
Even before the COVID-19 pandemic, customers were leading increasingly technology-centric lives that required insurers to transform service delivery and operating models. With the demands and constraints of the pandemic, a technology-enabled service delivery with a digital claims process is nonnegotiable and mission-critical. In the past, these needs may have gone unmet due to lack of technology solutions or an insurer’s inability to capitalize on technology, but the situation today is very different.
The insurance claims process: Core to the disruption
At the center of this insurance reset, the new growth engine is customer retention and loyalty, both of which are largely driven by customer interactions their insurers, specifically the claims experience.
Claims operations, which have been traditionally treated as outputs of a “reactive back office,” will have to become a powerful differentiator—innovative and uncompromising on customer service, with multifaceted talent and capable of driving strong results.
The key enablers for the likely future of claims are a combination of insurance claims process transformation, adoption of new technologies, a connected partner ecosystem, and a talent model that values technical claims handling and data science skills. Adoption of new technologies should reduce pressures of an aging workforce as no-touch insurance claims processing increases. At the same time, claims professionals will need greater technical fluency to take advantage of the increased volume and velocity of available information.
The four enablers
Priming the digital claims processing service delivery model for change
Transforming into an adaptable insurer will require flexibility and agility, guided by a risk-based, test-and-learn approach. This will unlock short-term value through quick-win initiatives while establishing a flexible future-state service delivery model that allows insurers to take advantage of emerging technologies.
There are five steps insurers can take to begin this insurance claims process journey:
In the wake of COVID-19, how prepared is your organization for an uncertain future? Learn how our Exponential ProfessionalTM solution helps companies navigate ambiguity and pave the way for the future workforce.