Library: Adacta – Why you should invest in insurance claims automation

Executive summary:

Claims management is a crucial process in any insurance company. On the one hand, it is responsible for a large chunk of the insurer’s costs. On the other, it directly affects clients and their satisfaction. These are reasons claims process automation and digital transformation initiatives allow insurers to cut operational costs, reduce fraud, and improve customer loyalty. This post looks at the challenges and opportunities and will help you understand how software can help you capitalise on the promises of claims automation.

Software can assist the reform ofClaims management improved  

Why claims management is so essential

For an insurance company, everything comes down to claims. It is the process that affects clients most directly when the insurer delivers on its commitment and the clients get their loss compensation. That’s what makes it so essential.

While most insurance companies concentrate on sales as the main source of revenue, claims handling is a huge opportunity to make a good impression on the clients, drive satisfaction and loyalty, and reduce costs at the same time.

For a claims handling process to be successful, it must be organised and standardised. Time is of the essence here. If the claims handling process takes too long, it will make policyholders frustrated and unhappy. In a time when it is easier to change insurance companies than buy a new pair of shoes, this can result in losing clients unnecessarily.

In this post, I will address the challenges in claims management, talk about the benefits of claims automation, and introduce AdInsure. Our software solution that will automate your routine and time-consuming tasks so your claims team can concentrate on what really matters – improving the customer experience.

Claims: mostly a rigid, complex, and costly business

In most insurance companies, claims handling is a rigid and complex manual process that involves sifting through large volumes of unstructured data. This means it is slow, often taking days or even weeks for more complex claims. It is prone to errors and even fraud attempts since fraud detection is often just a matter of personal judgment. With the rise of telematics data and IoT sensors, there is also more data than ever to process.

Nobody’s happy about this. Employees and customers alike are dissatisfied with the process, and the claims process’s inefficiencies often drive customer churn.

Many insurance companies are attempting to solve these challenges by implementing guidelines and protocols for claim handling to speed up the process and avoid different process variations.

Expenses related to claims represent the most significant chunk of insurers’ operating costs. These are the costs incurred in paying an insurance claim and the costs associated with preparing, handling, and adjusting claims. If the process is inefficient, the expenses grow quickly.

There’s no doubt this is a considerable challenge. However, it is also an opportunity. By optimising and automating processes involved in claims handling, we can lower costs significantly.

Claims automation opportunities

Let’s start by looking at what claims automation covers. In some cases, the claims process can be digitalised and automated entirely – from accepting claims to the final payout to the customer. For some insurers, the claims handling process can be extremely complex, making it impossible to automate entirely without at least some human intervention. However, even automating one part of that process can make a critical difference in terms of money and time savings.

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