Automation has become a part of our everyday lives, both professionally and personally. We continuously find ways to automate repetitive, manual processes to increase efficiency and productivity to make our lives easier. However, automated claims processing hasn’t yet become the norm.
There are many aspects of the claims process that could be improved with automation, especially in the instance of straightforward claims. It can be used to deliver automated updates to customers, fraud recognition or document validation. The main driver for insurers who do look to implement automation is increasing the efficiency of their operations. But there is another, perhaps even bigger, benefit to automated claims processing – delivering enhanced customer experiences.
This article explores how automated claims processing can not only improve efficiency but also improve customer experience and satisfaction.
A more human experience
When the claims process is automated, claims handlers are able to spend less of their working day bogged down in administrative tasks and more time actively communicating with customers and delivering a more personal experience.
One concern that insurers and claims handlers have when it comes to implementing automated claims processing, is losing the personal touch they are able to give their customers. However, in many instances, the opposite is true.
A manual claims process involves claims handlers spending a significant amount of time sifting through documentation, checking policy documents, validating documentation, fulfilling compliance and reporting requirements and completing data entry. While all of these steps are essential, they don’t actually deliver any direct value to the customer – all they know is that their claim hasn’t been settled yet. Often the claims handler is so busy working through all of these manual steps that they aren’t able to communicate as proactively with the customer as they would like.
When the claims process is automated, claims handlers are able to spend less of their working day bogged down in administrative tasks and more time actively communicating with customers and delivering a more personal experience. The reality is that when a customer is making a claim, something has gone wrong for them. Therefore, interactions with their insurer need to be rich in empathy and compassion, as well as efficiency. By automating the parts of the process that don’t need a human touch, claims handlers are able to lean more into the parts of the process where they can bring unique human value.
Reduced uncertainty
When customers are making a claim, the actual claims process is usually part of a wider landscape of uncertainty and worry in their lives. They may have had to take an unexpected trip to the vet for a sick pet or be looking for alternative accommodation in light of a house fire – the last thing that they want or need from their insurer is to have to go through a process that brings more uncertainty.
It’s common practice today to have regular updates from businesses as they process your request. For example, when Amazon receives an order they provide automated updates at every step of the process – ‘Your order is confirmed’, ‘Your order is dispatched’, and ‘Your order is out for delivery’. The reason why they do this is simple: it reduces uncertainty and increases peace of mind for customers.
Generally, an Amazon delivery is much lower stakes than the claims process, yet they have this continuous communication in place to keep customers informed.
So why is this not the norm in the claims process? Because it is unattainable without automation. Claims handlers simply do not have the bandwidth to keep up with the frequency of communication required to deliver a process like this.
By introducing automated claims processing, insurers are able to keep customers informed, reducing the uncertainty they face while their claims are being processed. Equally, claims handlers aren’t fighting a losing battle trying to keep up with admin communications and can focus their efforts on more significant, nuanced conversations with customers.
Increased consistency
While they say variety is the spice of life, generally claims processing is not an area people seek adventure in and by nature, humans aren’t particularly consistent. In many instances, this is a strength – it means we have the ability to adapt to different situations. However, in the claims process, it can be a cause of concern for customers. From one claims handler to the next, there will be variations in how long it takes them to review documentation, how they interact with customers and how communicative they are throughout the claims process.
Consistency builds trust with customers – they know what to expect and that they can rely on their insurer to remain steady in periods of chaos in their lives.
By automating the claims process, the experience customers have when they are making a claim is consistent, each and every time. They know the steps they have to go through, the updates they will receive and how to interact with the insurer. As with everything we’re used to, it brings a sense of comfort to customers in turbulent times.
Consistency doesn’t just benefit customers, though. For insurers, it can foster loyalty in their customer base. It is much more appealing for customers to stay with a reliable insurer versus taking a chance on a new insurer at a time when they’re already dealing with stress and uncertainty in their wider lives.
Automated claims processing delivers more than efficiency
While increased efficiency is often the driver for the adoption of automated claim processing, the benefits extend far beyond operational perks and can deliver real value to customers, as long as it is adopted with this in mind.
Like with all digital transformation, the opportunity to improve business processes and customer experiences is there, it just needs to be implemented in the right ways and for the right reasons to maximise its potential.
At Claim Technology, we believe in working backwards from the claims process you want to deliver for your customers and leveraging the technology you need to make it a reality. By starting with what delivers a positive customer experience, in this instance, compassion, transparency, reliability, communication and consistency, and implementing automated claims processing to enable this, insurers are setting themselves up for success.
To learn more contact us at hello@claimtechnology.co.uk or find us on LinkedIn.
