Insuranceciooutlook

Integrating Technologies For Claims Process

Insurance CIO Outlook | Wednesday, November 16, 2022

The competitive landscape is transforming, and customer expectations are regularly increasing, so insurance companies should integrate digital technologies into their operations to keep pace.

FREMONT, CA: A successful digital transformation in claims begins with developing a new value proposition, setting a high-level aspiration and pursuing end-to-end digitisation of the claims customer journey. A truly innovative customer journey development can be achieved by integrating AI and digital technologies, digital integration of the claims ecosystem, and a new digital operating model. Successful digital claim transformation integrates customer-experience excellence, analytics-driven claims handling and automation, claims-prevention and value-added services, and continuous improvement from customer feedback.

Together, these components provide management with the strategy and tools to transform claims into a digital function and enhance performance on all three foundational KPIs, such as artificial intelligence and digital technologies, digital claims ecosystem integration, and a new digital operating model.

New Digital Value Proposition For Claims

In the digital age, the claims value proposition, or the value an insurer can offer its customers through the claims process, must go beyond conventional after-the-fact claims management. The value proposition sets the aspirational goal of offering an excellent omnichannel customer experience assisted by intuitive digital processes.

Insurers should adopt a faster, analytics-driven strategy for claims handling and fully automate the claims handling processes for clear and simple cases. Along with working actively with customers to prevent claims, insurers should provide services that add value for and favour clients and draw on customer feedback to continually improve service offerings, usability, and performance.

Inculcating this upgraded value proposition within organisations is an often-underestimated digital transformation element. Top and middle management claim they should lead the new value proposition to avoid finding themselves halfway through the digital transformation without the necessary company-wide buy-in to stay the course.

End-to-End Digitisation of the Claims Customer Journey

The redesign of the claims customer journey is at the core of the claim function’s digital transformation. Although not a single interaction guarantees customer satisfaction, a successful redesign usually involves considering processes from the customer's perspective and streamlining back-office processes accordingly to offer simple and quick claims services. Satisfaction surveys in claims will show that customers desire a rapid and intuitive process and transparency on where they are in the process and what happens next.

Claims journey’s digital redesign needs to go deeper than superficial process improvements. To determine how digital technologies can discover value and improve the claims customer journey from start to finish, managers should evaluate each step of the process and develop an aspirational future state for claims unconstrained by potential short-term technological barriers.

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