Vice President of Sales & Marketing, SIMS Claims
How does a digital claims system help improve customer acquisition and retention? What are the risks of not adopting a digital system?
With companies like Uber, Amazon and Square, customers have come to expect transactions driven by digital technology. Not accommodating this trend is akin to turning one’s back on the future; insurers risk losing prospects as well as existing customers to more advanced carriers that offer speed and convenience. However, by using digital systems, insurers can deploy many of the functions customers are demanding. For example, a digital claims system can leverage web-based portals that enable insureds to report claims. With mapping technology, insureds can be directed to nearby service providers, such as a body shop for car repairs, and when it comes time to receive a claim payout, they can be prompted via a cell phone to authorize and receive a digital payment directly into their accounts.
How does a digital claims process benefit from better business intelligence and predictive analytics?
Customers are under tremendous pressure to reduce claims costs. Today, digital claims systems leverage web services and APIs to bring together a plethora of information from various sources including telematics and smart facilities. With integrated business intelligence (BI), a claims system can compile this data, transform it into stunning visuals and use predictive analytics to identify areas of claims escalation. With BI tools at their disposal, insurers can distribute various stewardship reports to policyholders. In commercial lines, a policyholder could, in turn, make its stakeholders aware of trends and get everyone focused on the same goals through performance metrics. For example, a department store may want to reduce slip-and-fall incidents that impact workers’ comp and general liability costs and use BI to monitor progress toward this objective.