Claims are the real moment of truth for an insurer.

It’s judgement day when the insurer’s commitment to provide peace of mind, at a time of crisis or loss, is tested by the policyholder. Customers that have taken out an insurance product trust that their provider will deliver on what they have promised. How an insurer handles a claim can make or break the relationship.

The claims process is critical to customer satisfaction. Insurers that make it easy to make a claim by digitising the process make it easy to be a customer. Customers will still want to talk to a real person and seek empathy and assurance. But they also want the convenience of using digital tools and self-serve options to simplify and speed up the claims process.

Competition is fierce from InsurTechs that are driven by a customer focus and built for Triple A agility – automation, artificial intelligence and analytics. These challengers have been building digital ecosystems and rolling out rapid technology advancements to streamline the claims process to offer customers an effortless digital experience. Insurers that are still heavily reliant  on outdated manual processes will be left behind. Progressive legacy brands are joining, or building, their own ecosystems to leverage automation, AI and analytics to deliver a superior customer experience, unlock efficiencies and better detect fraud.

Improved customer satisfaction

Research by Genpact discovered that three quarters of insurers reported digital technology transformed the claim process. The research also found that the link with improved customer satisfaction was ‘real’. Three quarters of insurers also said that investment in technology was keeping their customers happy.

Oliver Wyman reports that a North American insurer rolled out a photo-based app. By using new technology, they simplified their claims process. This saw their Net Promoter Score increase by 1.6 points. The app can assess damage to more than 70% of cars. Claim adjusters can also use it to speak with body-shop repairers. It’s win-win for both customer and carrier. The insurer also improved its loss ratio by 0.5%.

Mapping the end-to-end claims journey   

To catch up, insurers without a plan will need to map the end-to-end claims journey to leverage technology to digitise key touch-points. Carriers that map these journeys will be able to close any gaps that mass online migration in a Covid-world have exposed. They will be able to create a seamless journey that delivers on customer expectations of a quick, efficient claims process. Legacy brands without the capability, technology or resources to digitise claims will need to create new partnerships to help them think with a customer-orientated mindset to develop solutions. We’re here if you need our help.