Internal Claims Management
For many insurers, digitizing claims handling is the first step to improving the claims process and increasing retention rates. While some insurers choose to build systems from scratch, there are purpose-built out-of-the-box solutions available that can dramatically improve the claims process for insurers and customers alike. Leveraging these tools effectively can expedite and improve the accuracy of adjusting, identify the people and resources necessary to complete a claim, and settle them more quickly.
Layering analytics into a claims processing solution helps insurers know which claims to settle more quickly while flagging the smaller percentage of claims with a higher likelihood of fraud and risk of litigation. This helps insurers better adjust their reserves as appropriate and mitigate the risk of jumper claims. Integrating analytics at the claims point-of-entry gives insurers more confidence in handling an individual claim and reduces bottlenecks, which is particularly important when an insurer operates in areas with a higher likelihood of natural disasters, leading to higher spikes of claim volume.
These analytics are often powered by data partnerships and customergenerated data (e.g., Lemonade’s use of video claim submissions), adding visibility into the potential for a problematic claim. In the near term, the ability to incorporate data from a variety of sources will be critical in making claims systems more effective. In the future, data will come from even more sources, such as drones, autonomous vehicles, data streams from wearable medical devices, satellite imagery, and connected home devices.
The NAIC research found that one-third of the claims-related complaints each year relate to delays. Converting to a digital claims process that integrates a variety of external data can lessen the chance of customers feeling neglected after filing a claim.