What Insurers Need to Know to Keep the Pace in the Next Digital Age

Posted by Andrew on June 3, 2019

The digitization of the claims process isn’t a new concept. Any insurer hoping to remain relevant knows they need to adapt and implement changes to keep up with customer expectations. Offering a mobile app is a good start, but transformative companies are revolutionizing the insurance landscape beyond this basic measure.

New insurers emerging from the FinTech sector harness the power of artificial intelligence alongside chatbots to eliminate brokers altogether. While this may seem like a radical business model, the processes of buying insurance and filing claims with these companies are simple and easy—a major lure to customers that are tired of confusing, frustrating traditional methods of filing a claim.

Implementing a Successful Digital Transformation

Insurance companies that want to keep pace with new-age providers need to address three areas to see the greatest results:

  1. Customer experience
  2. Efficiency
  3. Effectiveness

With happier customers, less expensive claims processes, and more accurate management of claims, insurers can guarantee their place in the industry. To achieve those goals, they will need to make the following changes:

  • Offer a digital method for first notice of loss (FNOL)
  • Automate claims management to expedite the claim
  • Accelerate loss assessments and repairs through digital means such as photos, videos, and geo-locators to find local repair facilities
  • Automate settlements to reduce customer frustration and unnecessary delays in receiving funds

Another way insurers can lean on technology is to try to prevent claims before they occur. Claims prevention is nothing new, but sending out useful information via digital means can help ensure the information reaches the customer in a timely manner. This also allows for active participation with customers through online portals and chats.

Before making any significant changes, insurers need to consider them from the customer’s perspective. If the change doesn’t offer a noticeable improvement on the front end, it won’t likely yield an increase in customer satisfaction. Insurers should focus their efforts on optimizing back-end processes to improve services for customers instead.

Technology has transformed the way insurance companies do business and what customers expect of their provider. Failing to keep pace with these things can lead to retention problems with existing customers as well as hinder acquisition efforts for new customers. To learn more about improving FNOL, claims management, and more, contact the experts at Actec.