An effective digital redesign of claims must prioritize the customer experience above all else, while also making sure that any changes result in real value.
Insurers need to focus on the customer and rethink all their customer interactions from start to finish. They should start with the customer journeys that are most relevant.
In order to have the most impact, those responsible for claims should develop a digital value proposition and an aspirational future state for a digital claims function, and then prioritize what needs to be done to achieve that transformation.
In order to digitize and transform claims, there are certain elements that are essential. This article takes a look at what those elements are.
Elements Of A Successful Digital Claims Transformation
Based on our experience, the best way to start a digital transformation in claims is by coming up with a new value proposition that sets a high-level goal. Once you have that, you can start working on digitizing the entire customer journey when it comes to claims.
A truly innovative customer journey can be achieved by integrating with three other areas—AI and digital technologies, the digital integration of the claims ecosystem, and a new digital operating model.
New Digital Value Proposition For Claims
The value that an insurer can provide to its customers through the claims process needs to go beyond traditional after-the-fact claims management in order to be successful in the digital age.
The goal of the value proposition is to offer excellent omnichannel customer experience through easy to use digital processes.
Insurers should use analytics to handle claims faster and automate the processes for simple cases.
Lemonade has redesigned the customer experience by introducing a innovative chatbot-based FNOL system. This system makes automated claims payouts within seconds.
In order to both prevent claims and provide value-adding services, insurers should take an active role in working with customers. They should also design services that customers will find useful and enjoyable, while simultaneously soliciting feedback from customers to learn how to improve future offerings.
Fostering a digital transformation within an organization often requires more than just updating technology–it also demands revisiting the organization’s core values.
Management should become champions for the new value proposition to avoid being halfway through the digital transformation without enough company-wide support to continue.
End-to-End Digitization Of The Claims Customer Journey
The digital transformation of the claim function begins with a redesign of the customer journey.
There is no one perfect way to guarantee customer satisfaction, but a successful redesign typically involves taking a customer-centered approach to redesigning processes, and focusing on optimizing back-office processes to make claims services simpler and faster.
To truly transform the insurance industry, insurers must start with a mind-set that everything is possible.
Customer satisfaction surveys for insurance claims show that people want a quick and easy process, as well as knowing what is happening at each stage and what will happen next.
The digital redesign of a claims journey needs to be much more than just superficial process improvements.
Adeslas, a Spanish company, has digitized their claims journey from start to finish, implementing features such as multichannel FNOL, automated claims segmentation, and digital claims status tracking.
To determine how digital technologies can unlock value and improve the claims customer journey from start to finish, managers should examine each step of the journey with the following areas in mind and start to develop an aspirational future state for claims that is unconstrained by potential short-term, technological barriers:
Product Simplification
People want digital interactions that are quick and easy, but a lot of coverage details with a lot of specific exceptions can make it difficult.
There are a great many existing products with different coverage details, which makes it hard to set up and keep running the technology systems that would make things more efficient.
A carrier should develop fewer product types and versions to make it easier to create digital customer experiences.
Customer And Intermediary Self-Service
insurers can give routine claims transactions to intermediaries like agents and brokers, or to customers themselves
There are two examples of helpful online tools mentioned in the text. One is an online tool for FNOL, and the other is an online self-scheduling tool for appointments with claims adjusters. When creating a self-service tool for customers, insurers must be clear about what information is needed, for example, the customer’s policy number.
In addition to providing the product or service, companies must also include support in case customers need it. This can be in the form of online chat with a claims handler or easy-to-find FAQs.
Additionally, it is important that customers can move between channels without having to start over or provide repetitive information.
In order for this to work, all system interfaces must be exactly the same.
Switch To Digital Claims
Digital claims management can improve customer-facing operations as well as benefiting insurers internally. A few of the top reasons why insurers should switch to digital claims include:
Increased Claims Efficiency
Today’s technology makes it possible to streamline claims management practices, which can result in faster processing and reduced claims cycle times.
Using workflows that are guided by dynamics and automation allows claims to be processed much faster. When insurers free up their agents, they enable them to focus more on providing great customer service and achieving positive results.
Improved Customer Experiences
By using digital claims, insurers can lower their expenses by using automated tools while also improving customer service.
Automated processes can manage an investigation until its completion and reduce the amount of time it takes to process a claim, which would give customers their settlement faster and give them a better overall experience.
Digital insurance claims are possible because of a technology that is part of a larger ecosystem. This ecosystem can provide policyholders with the transparent and effective communications they desire.
Bain and Co. report that 61% of policy-holders will switch insurers to find better ecosystem services.
Modernized Operations And Faster Innovation
PwC’s report said that 67% of insurance CEOs think innovation is very important for their organisations. How quickly insurers can come up with new ideas and launch new products is a key to being successful.
The use of claims technologies can help improve many aspects of an insurer’s operations, which in turn can improve other insurance functions, such as product development.
Leveraging Big Data and Artificial Intelligence for Digital Claims
By using new mobile technologies, artificial intelligence, and machine learning capabilities, insurers can significantly improve their claims processing workflow.
AI can help automate many aspects of the claims process, including reducing the time needed to process claims.
The data generated during the claims process can be used to unlock new insights and improve nearly every facet of insurance operations.
Some of the primary ways insurers can utilize AI and big data in the digital claims process include:
Damage Assessment
AI technology can be used by insurers and customers to communicate and work through the initial stages of the claims process. With just a few taps on a mobile app, customers can take photos and videos of any damage, which is then quickly and accurately processed by AI technology.
Customer Interaction
Chatbots are now playing an important role in the initial reporting of a claim. This enables customers to report incidents at any time and place, and can start the process much faster than before.
Chatbots could be used to speed up the claims process by communicating with customers throughout the process.
Fraud Detection/Management
Artificial intelligence and machine learning can help identify potential fraud early on, as well as give fraud investigators new tools to work with. AI can help prevent fraudulent behavior by insurers by detecting it in real time and alerting them before any money is lost.
Benefits Of Digital Claims
A digital claims system can help insurers in the following ways: -Faster, easier access to claims information -The ability to quickly connect with health care providers -Greater visibility into the claims process -Improved customer satisfaction With digital claims, carriers can achieve:
Faster Claims Processing
If claimants provide more information when they make their claims, the claims automation processing time can be significantly reduced.
The type of claim, severity, elements, and injury can all be used to route claims to the right person or even complete claims without any input.
Loyal Customers
According to the text, digital claims can improve customer loyalty because they provide carriers with better insight into customer data. Carriers are working to make their interaction with customers more personalized in order to improve satisfaction.
Better Analysis
A better analysis leads to fewer losses for the carrier which in turn leads to increased customer satisfaction. When carriers use advanced analysis, it also improves fraud detection.
Successfully Make The Digital Claims Transformation
The insurance-claims process, from prevention to first notice of loss, to investigation, and finally settlement, can be difficult and confusing for customers.
To figure out how digital technologies can help create value and make the claims customer journey smoother from beginning to end, businesses need to study every step of the journey and start planning how to make the process more streamlined. Common best practices for implementation include:
Declare Objectives And Guiding Principles Up Front
This means that in order to successfully carry out projects that will have a transformative effect, tough decisions and compromises will have to be made.
To ensure that the transformation process goes smoothly, it is important that all stakeholders have a clear understanding of what the transformed claims process and ecosystem will look like.
As issues arise, it is helpful to have guiding principles to refer back to, in order to prioritize choices and ensure that the final project meets objectives. For example, a guiding principle could be “the customer experience must be easy.”
Hold A Discovery Workshop
Most insurers are aware that they need to improve their current system, but it can be difficult to identify everything that needs to be improved.
Analyzing the current state and defining new objectives through holding workshops makes it much easier to take obsolete claims products and processes and transform them into a new, efficient system.
The process of identifying the work that needs to be completed is much easier. Additionally, once the new claims system is finished, user adoption can be increased because end users will be able to see where the new system came from and what it offers.
Define Project Scope
If the scope of a project is not defined, it could lead to problems and jeopardize the success of the project. It is important to keep the scope of your project tied to your objectives when moving to digital claims processing. This will ensure that your project stays on track and that you are able to achieve your goals.
Test And Learn
It is important to involve end users in the process from the beginning. The people who will be using the system regularly, for example adjusters, should provide feedback while the system is being set up. If small items, like having easy access to claim notes, were available it could make a significant difference in adoption rates.
Digital claims can either be a single, isolated solution, or part of a more comprehensive digital transformation of insurance. When considering which products to buy, think about whether they will fit into a larger digital ecosystem that can be easily scaled up and modernized.
Insurance technology that is based in the cloud is ideal for these capabilities as they will continue to develop along with technology and the industry.
New Operating Model For The Digital Age
A successful digital transformation requires a radical rethinking of the customer journey with the help of AI, digital technologies, and the claims ecosystem.
The claims department needs to work closely with other departments such as marketing and IT to help achieve these goals.
The transformation mentioned in the text requires new roles, including data scientists, customer journey “owners,” and user experience designers. In addition, the organization needs to adopt a digital way of working.
This approach involves learning by doing, which takes time to implement but can be jump-started in the following ways:
followed by the creation of a prototype. The customer journey should be digitized with a short design phase, followed by the creation of a prototype.
Design thinking techniques aim to develop the best possible customer journey from start to finish. The process directly involves consumers in giving feedback on ideas and concepts.
The most successful players are those who can quickly move from the drawing board to prototype development.
Progress is best made with agile development methods, such as gathering requirements and then rapidly prototyping and iterating.
The company constantly improves its digital channels and solutions by taking customer feedback into account. This way, customers always have a positive experience with the company’s ever-changing digital claims process.
In order for this new digital way of working to be successful, it needs to be deeply integrated into the entire organization.
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