Touchless claims processing is an innovative way of handling a claim from first notice of loss (FNOL) through to settlement with no human interference. Technology such as AI, mobile tools, apps, and increased data analysis are encouraging insurers to adopt new innovative methods. Familiarity with these technologies is increasing this innovative attitude across the industry – and touchless claims processing is now a familiar agenda item for insurers.
Touchless claims can play a part during many stages of the claims process; at FNOL, or across the entire claim’s lifecycle, right through to settlement and closure.
The benefits of touchless claims are clear; however, insurers need to determine many architectural, people and process factors before they can delve further.
Moving from legacy environments to low-touch claims
A recent study showed that Carriers already using claims automation report a reduction in touchpoints, shorter claims lifecycles, increased employee productivity, lower loss adjustment expense (LAE) and higher customer satisfaction. (LexisNexis, 2019).
What is a low-touch claims solution?
Low touch, in the context of touchless and traditional claims processes, is a hybrid sitting in between the two. Quick and low-complex claims can be handled autonomously at the point of FNOL. A claims handler will be involved perhaps at the end of the FNOL stage; this could be to ask follow-up questions based on the initial information gathered at the earlier stages. As with any customised and complex solution, you may not be able to have a fully touchless claims solution, but you can have a version of it.
The benefits of this are;
- Human interaction – empathy for the customer involved
- Less chance of common fraud
- The claims handler already has the necessary information and is able to escalate the claim or settle it as required, saving time.
The considerations of this model involve;
- If the information the claims handler is gathering conflicts with the FNOL information, the claim becomes unnecessarily complex (this would be down to the FNOL process needing to be as user friendly as possible)
- Cost: if the claims handler is only there to confirm the automated side of things, you are doubling up on resource and undermining your automation investment efforts
- The ability to future-proof this system – is this model viable and still useful years down the line of your claims roadmap?
- Can you sustain the talent needed to support this system?
Going from low-touch to an entirely touchless system
The transformation goal for many is a fully automated claims system with zero chance of fraud, remaining secure and compliant, providing good customer experience, and remaining competitive on the market. Adopting the technology not only sustains this competitive edge but overtakes it quite substantially. Discover more in our touchless claims whitepaper here.