As many as 47% of customers say they stop purchasing from a company after experiencing poor customer service. And once they’ve had that negative experience, it takes as many as 12 additional positive interactions to make up for it.[1]
The stakes are high.
As an insurance carrier, your insureds have an opportunity to interact with you many times over the course of a policy year, including when they file a claim, request an endorsement, or when renewing coverage.
Each interaction is an opportunity to build trust and share information. For carriers, customer touch points can be challenging if the customer’s information isn’t easily downloadable or accessible in electronic form.
The Modern Customer and Claims Administration Experience
Today’s policyholders are consumers of insurance. They want their claims and insurance information to be easily accessible in real time. They want claims status and payment information to be just as readily available as their phone bill and mortgage information.
The best way to provide this service is to automate as much of the policy and claims administration process as possible.
Take customer Dave. He got into a car accident this morning and now he has to file a claim. Before his insurance carrier had an automated claims process, he waited until he had a block of time to devote to filing a claim. Now that his carrier has an automated claims process, he’s more confident in his ability to file the claim and knows he can do it that night from his cell phone.
The automation process helps Dave communicate with his carrier, i.e. submit his claim, without having to call the customer service line. The portal guides Dave through a series of questions aimed at improving the accuracy and immediacy of his reporting. Dave knows what to expect from the process now and feels his communications with his carrier are painless.
Internally, automating policy and claims administration is a game changer for insurance carrier staff, helping them streamline policyholder and claimant communications.
Communication on Demand
Both the carrier’s staff and policyholders want the same thing — the ability to communicate thoroughly on demand.
When information is available online or via app 24/7/365, with just a click or swipe on a mobile device, every interaction between the carrier and the policyholder becomes a positive one.
The benefits of automating the claims process for communication are vast. Here are a few ways both policyholders and carriers experience improved communication from claims automation:
- Improved access. When policyholders have a claim to file, it can be filed on their own time. Customers appreciate being able to access claim information themselves, from the convenience of their mobile devices. Improved digital access for customers means reduced daily demands on carrier staff. When there is an issue with a claim, communication between the carrier and the customer is streamlined, as they both have access to the same information dashboard.
- Personalization is possible. When each party logs in to the portal, they see their own individual dashboards. Customer dashboards display individual insurance information with relevant options. Carriers can engage their branding on the app or online portal to create another form of recognition and connection between the carrier and the policyholder. Similarly, carriers have access to dashboards, reports and screens to help their customers as well. Every time the customer views the dashboard, they are essentially communicating with their carrier.
- “Push” capability options. The right information should go to the right people at the right time. An app or online portal allows insureds to specify when they want to receive notifications – and what information they want to receive. Customers appreciate the ability to set their own guidelines for communication with the carrier to ensure their data privacy and eliminate unwanted communications.
- Enhanced data availability. When customers have access to their own data, there’s a better chance they will make thoughtful decisions and follow through. Most importantly, they are more likely to trust their carrier partners.
In addition to the above, there are a number of benefits exclusive to the carrier. They include:
- Readily identify “jumper” claims.“Jumper” or “sleeper” claims account for 40% of Workers’ Compensation payouts annually. Automating claims management can help carriers flag these claims and take preventative steps to mitigate costs earlier in the claims process.
- Reduce administrative costs. Automating claims reduces administrative costs by decreasing the amount of manual data entry and other tasks your staff has to do when “touching” the claim. Labor-intensive underwriting can also be automated, thereby further reducing admin costs.
- Realize operational savings. When the claims process is automated and carrier staff isn’t bogged down with administrative tasks, they have the time and space needed to address core business functions, such as tracking loss control or investment return.
Next Steps
Insurance claims are costly, complex transactions involving multiple parties, systems and regulatory concerns. Automating claims services will open lines of communication for both the insureds and carrier staff.
For more information on improving efficiency for your claims administration, contact Leslie Sargent, our Insurance Carrier practice leader.
[1]https://www.salesforce.com/blog/customer-service-stats/
