Optimizing Customer Engagement with Insurance Technology

Insurance CIO Outlook | Monday, January 09, 2023

Insurer claims are being managed in a rapidly evolving way as a result of technological advancements. It is evident, however, that the industry has greater technological potential.

FREMONT, CA: Insurance companies can create efficiencies by utilizing technology, with some companies at a different level of modernization. Customers expect technology to be incorporated into the commercial insurance claims process, with automated customer interaction prevalent in many parts of their lives.

As a result of implementing technology, insurance companies will be able to remain relevant in a competitive marketplace and compete for customers as well as renewals. Technology-based platforms are becoming more prevalent, both internally and externally.

It is often impossible to ignore the emotional aspect of an insurance claim when it comes to a business owner. This is certainly true for small and medium-sized businesses, where private wealth is at stake, and individual claimants may expect to speak directly with someone about their claim. There may be an exception here where a claim is accepted and paid in full without many questions being asked. A quick resolution is expected in all cases.

Despite technological advances, people still need to speak with another human being to ensure their claim is progressing as expected and that it is being addressed effectively. Resourcing issues can make meeting speed and efficiency expectations difficult when dealing with wide-area damage or surge claims. In this way, transactions can take place digitally with little face-to-face interaction between parties. It is important to balance digital transactions and human interaction when automating commercial claims.

Claims are often handled in an automated manner, depending on their complexity. A business owner may wish to discuss issues unique to their claim with their insurance company, and a digital platform could address those issues as technology advances. A robust network of claims professionals can assist when more conversation or investigation is required. It is still possible to automate the common elements of the claims process, which will improve efficiency and speed.

There is a learning curve involved in the adoption of any technology. Looking back at other areas of business that have utilized technology and how they have evolved, moving away from human interaction and toward automation is worthwhile. Two obvious areas where automation has been heavily implemented in recent years are banking and shopping. As a result of widespread automation, both customers have adopted it. Insurance claims are no different from other types of claims. Commercial insurance customers will become increasingly accustomed to automation as time goes on. Insurance companies will also be able to distinguish themselves from one another due to it. For now, any claim solution must consider the human element as it remains an important factor in some claims.

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