How Will COVID-19 Affect Insurance Claims?

Posted by Andrew on April 13, 2020

So long as policyholders are up to date on their insurance, their coverage remains in effect. However, with the novel coronavirus, business as usual has taken on a drastically different meaning. Processing insurance claims requires greater connectivity and technological solutions than ever given the social distancing protocols recommended by the CDC.

Expect a Surge in Virtual Claims

Mobile apps and online dashboard are nothing new for many insurance providers. However, few are fully equipped to manage the entire claims process through the customer’s smartphone uploads. While touchless claims have been gaining in popularity, it’s been slow to implement for many carriers. Facing the realities of social distancing, many insurance providers are going to need to play catch up to allow customers to submit claims in a timely manner as well as receive fair compensation.

Some examples of how to implement virtual claims include:

  • Allowing customers to submit pictures from their phone to the mobile app
  • Allowing customers to take video footage to provide a closer look at damages related to their claim
  • Submitting police reports via the mobile app

For smaller claims, it’s possible that the customer can provide the appropriate photo or video documentation to assess the claim, identify the appropriate vendors or service providers to address any damages, and pay out applicable settlements.

What Insurance Providers are Doing to Help Clients Affected by COVID-19

Many insurers are taking steps to help relieve the pressure COVID-19 has put on many individuals and businesses. Some examples of the steps they’ve taken include:

  • Keeping policies active despite non-payment due to epidemic-related job loss
  • Establishing payment plans to reduce monthly statements for individuals who can’t make full payments due to the coronavirus
  • Allowing insurance employees to work remotely to prevent the spread of COVID-19 while still providing services to customers
  • Keeping call centers fully operational

Policyholders have high expectations of their insurance providers. A bad claims experience can lose customers, particularly during an already difficult time. Contact the experts at Actec to learn how we can help your insurance business improve claims management.