Identifying the Key Factors In Claim Transformation Journey

With the claims transforming into digitally-favoured mediums, identifying the potential components are critical to ensure an effective transition.      

FREMONT, CA: Claims are often considered to be a property and casualty insurer’s most cost-effective component, per the combined losses with investigative and settlement expenses that typically account for nearly 70 per cent of a nation’s collected premium on average. Furthermore, augmented claims processing with innovative technologies and data sources is under intense scrutiny due to its ability to facilitate increased efficiency, productivity, and accuracy, with the saved expenses having a significant impact on the bottom line.

With the necessity of outsmarting the need for reinvention, the transformation was effected with the advent of the pandemic, accelerating the implementation rate of digital and virtual claims in the sector. However, most chief claim officers (CCOs) from large and mid-sized personal and commercial lines carriers globally state that they are often intimidated between the drive to divert more claims to the automated systems and the need to maintain a human touch at the required extensions, favouring policyholders.

Meanwhile, this trend is likely to emerge as a pivotal need in the sector, with insurers critically bolstering data sources and technology infrastructure for effective claim settlement with induced speed, accuracy, and reduced costs, as well as a proven upskilling of claim professionals. This, in turn, offers a maximisation of the values of the newly integrated technology and data, with the ability to curate a personalised customer experience accordingly.

Whereas the claim transformation journey includes several key components, carriers take different approaches depending on the line of business and customer segment. That is, technology ought to stimulate enhancements under fact-based management. Generally, the sole aim relies on the creation of a more data-driven feedback loop, improving turnaround time and outcomes. For instance, placing sensors in varied properties and wearables enables capturing real-time data and documenting acute accident details.

Similarly, engaging with customers at a comfortable point is another proven postulate in the claim transformation journey. That is, irrespective of the ability to embrace digital platforms for long-term cost-effectiveness, carriers scarcely promote claimants into virtual channels, constructing a hybrid system with proven access to live claim professionals per the preferred operating model.

Moreover, successful management of the transformation journey's evolutions is critical. Misunderstanding, fear, and resistance of the claim professionals often stimulate uncertainties regarding automation, thereby undermining the transitions to an exponential future in the sector. As a result, continuous, clear communication for the accelerated need and placement of these skills, combined with enhanced organisational support, enables the effective rectification of the aforementioned concerns.