Claims Transformation | Georgina | 11 February 2021
Technology advancements, particularly across the insurance industry, have increased customer convenience and therefore competition in the marketplace. Touchless claims processing has been around for a few years, however, the benefits it presents should not be ignored by insurers. In the race to have the best customer experience possible, insurers should be considering the advantages touchless claims presents.
What is touchless claims processing?
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 artificial intelligence, mobile tools, apps and increased data analysis have encouraged insurers to turn their heads to new innovative methods. Familiarity with these technologies has increased this innovative attitude across the industry – and touchless claims processing is now not unheard of among insurers; additionally, it’s not a worrying concept for insurers to embrace either.
Touchless claims processing uses all of the above technologies to ensure a claim is dealt with efficiently for both the customer and the insurer. Currently, most insurance claims are dealt with through human intervention, which can be laborious and fraught with unnecessary complications depending on the nature of the claim.
What are the benefits of touchless claims processing?
In the simplest of claims for example, (a damaged car with no injury or questionable blame), touchless claims can eliminate added stress for the customer. Instead of making a claim via a lengthy telephone discussion, customers can upload the necessary information through an app on their mobile. Features in the apps such as built in video, messaging bots and more can speed up the FNOL process. Following this, the information is verified and the customer can receive an almost instant resolution; whether this is denying the claim or setting up payments.
The benefits are clear. A speedier process with little effort equals a more satisfactory customer experience. Taking the stress out of making a claim will undoubtedly be a benefit for a customer. Instead of a claims horror story, positive word of mouth of this process will not only garner new customers, but help to retain existing business (something that’s arguably difficult to achieve in an industry known for low customer loyalty).
What are the risks?
Understandably, insurers want to know the risks involved in embracing this innovation. Automation of the claims process naturally comes with many questions surrounding data management, cost to maintain and update, as well as how futureproof the investment will be.
At the very least, touchless claims processing is looking to be the foundation to which many insurers can begin with to lay the groundwork for a far more contemporary experience in the long term. How this will evolve remains to be seen – however it will indeed evolve as naturally as any progress in technology. As data use becomes more regulated, insurers will have little choice but to adapt to the change of pace in digital transformation. Soon enough, unautomated, paper based processes will carry data risks of their own.
How will touchless claims processing work for complex claims?
Touchless claims processing can be simply adapted for simple claims; but what about more complex incidents? Whether disasters for example are notoriously complicated to resolve. One would argue that for these, the technology is already there. Drone and other mobile operated technology can be utilised, as well as augmented reality to piece together estimates and cost models. The benefits here speed up the estimation and loss adjustment process for the insurer; which in turn will accelerate the claims cycle for the customer.