For the first time in decades, insurers are playing a tune that the customers can whistle.
Insurance companies are increasingly embarking on digital transformation that smartly optimizes digital journeys and backoffice processes with the sole aim of delivering simple and quick claims services.
Here’s how insurers can unleash truly transformative digital claim journeys.
1. Prevention First
Advanced sensors on products such as vehicles can identify high risk scenarios beforehand. Customers can be advised of safest routes, best safety practices on their mobile. Responsible customers can be awarded with lower premiums than higher risks ones.
For instance, auto insurers have already started usage based insurance (UBI). They can monitor driver behavior through telematics on the vehicle or smartphone. The behavioral information transmitted to the insurer can help the company assess the risks of driver having an accident and charge premiums accordingly.
2. Instant damage/loss assessment through seamless integration
Traditional damage assessment involves asking the customer approximately 40 harrowing questions in their time of need during FNOL (First Notice of Loss), thus driving customer disappointment higher. Now, advanced sensors in cars and IoT connected products, properties can estimate the damage in real time. Integration with third party providers can allow insurers to do real time damage evaluation through images or description with AI, OCR and image analysis capabilities.
3. Evolution of claims manager
Innovative digital journeys can help claims manager go beyond traditional claim management. They will evolve from being a ‘firefighter’ to an ‘integrator’ who efficiently marries technology with a empathy driven human touch. Digital claim journey designers in insurance will equip claim managers to be equipped to deal with ‘consumerization of a claim experience’ and dynamic ways of addressing claims.
4. Simplifing process with advanced telematics driven by AI
Telematics is not usually associated with insurance. But technology advancements and innovative ways of application are pushing the boundaries of insure tech. Telematics in IoT (Internet of Things) products are empowering indepth engagement between insurers and customers.
New York Central Mutual Fire Insurance Company (NYCM) uses an user based insurance program that leverages telematics. Users and their dependents get real time alerts about their driving usage including over acceleration, hard brakes or pre defined driving routes. Participants get a 10% discount on their premiums and consistent good driving behavior can get as much as 30% renewal discounts.
5. Automated settlement
Automated verification of FNOL (First Notification of Loss), damage and repair estimates can lead to automatic reimbursements as soon as the invoices are verified through digital signatures. An analytics driven approach can automate claims handling for clear and simple cases.
A leading digital insurer in North America has implemented an innovative, chatbot-based FNOL system that creates automated claims payouts within seconds by integrating and actively working with third party repair vendors.
Improving claim accuracy and settlement time can deliver reduction in loss costs with reduced processing times. Next generational digital claim journeys can thus deliver greater satisfaction with lower incidence of claim disputes and litigation.