Insurance Nexus regularly offers analysis notes. Anticipating the event Connected Claims Europe, They have just published a white paper “Automated and seamless claims – A practical guide to an efficient customer-centric claim“. Here are the key points.
Combining human and the technology
Automation has become a habit in all processes, especially thanks to the arrival of the web. On the other hand, interactions with teams are not straightforward. Does technology replace or supplement human intelligence?
What determines the integration of technology are three constraints: time constraint, data constraint and cost constraint.
On each of these constraints, machines can inevitably provide an answer! They can satisfy the essential (if not all) of the missions fulfilled by man, do it better and often cheaper. This obviously represents a risk for employees.
However, the human being can evolve and be trained in new skills. Moreover, it has an emotional intelligence that still allows it to meet today’s special needs that the machines can not yet satisfy.
This means intelligently integrating teams into the definition of automation so that they can be defined and benefit from improvements in their future missions. It is the only way to ensure that they accept this change, but also that they support it and drive it.
Aim for strategic and non-tactical cost reductions
Most of the cost reductions targeted at the moment are minor alterations to the business model to improve on time. It is often a matter of reducing personnel costs through automation or relocation in cheaper areas.
On the other hand, there are levers that have not yet been fully exploited, focusing on the business model as a whole. By taking a particular focus on third-party service providers, for example, there are potentially significant actions to be taken.
Up to now, automation has mostly been considered from the point of view of cost reduction, whereas it is beginning to be considered as a key element of the customer experience. This is a paradigm shift. This automation can be used at many stages of disaster resolution, from declaration to final settlement. In the end, it is time saved and costs reduced. Everyone wins!
Automate the customer experience
The insurance industry is traditionally dedicated to face-to-face or telephone. In this context, automation can only seem to be of interest to the insurer and not to the insured.
However, what the insured wants is immediacy and efficiency. He wants to know where his disaster is. On these aspects, automation allows to anticipate the needs of the insured and reduce the number of unnecessary contact points.
On the other hand, what is important for the insurer is to propose the choice to its insured of the best channel according to the moment. It is common for the insured person to declare his claim by having a human contact and then prefers to receive the following notifications by mail for example. The aim is to propose and manage an omni-channel relationship in an efficient and fluid way. For each channel, automation solutions exist (artificial intelligence, robots, etc.).
It is above all to be helped by automation to bring a better level of response to the insured. It is out of the question to cause failure on only one stage of the process, or the perception of the insured will be bad, which would be a risk of attrition!
Focus on experience with subcontractors
In claims management, the insurer actually focuses on the customer experience. However, there are many players in the disaster management chain (assis- tant, repairers, experts, etc.). But only the insurer is interested in this aspect! He must then be the guarantor of the respect of this experience, whatever the interlocutor of the insured. It is therefore a question of correctly managing the provider chain.
Indeed, it is useless for an insurer to process the declaration of loss in record time, if the delay drags on later in administrative actions or interactions that work badly.
This can be done by making available to all players the right information in real time, via a partner portal, for example.
Key take-aways of white paper “Seamless Claims”
There are many difficulties to overcome to fully automate a claim process. That’s why it takes so long to set up for insurers. Anyway, 3 good practices emerge:
Step by step
It is not necessary to want to change everything at once. Claims management consists mainly of three steps: registration, decision, and payment. It is then possible to envisage evolution step by step, and in a decorrelated manner over time. By automating the 1st step, it is an important brick allowing to envisage and to build the suite. Be careful: too much cutting can prevent the real and profound changes of culture necessary.
. Improving the spirit and corporate culture
There are too many processes that are managed in a purely hierarchical way. Understanding the pressures and difficulties before and after the deployment of the automation phase can better respond to them and empower all stakeholders. It is a cultural issue that seeks to get more commitment from everyone.
Automation must be both transparent and intuitive for the customer. It is a matter of making sure that it answers to his need without feeling the impression of being driven along this path for simple reasons of cost reductions!