Businesses have been so focused on technology advancements that insurers seem to be distracted from their core competencies, without considering how these changes can improve their processes. At a high level, insurers offer various policies to claimants to protect against different risk factors in their lives, such as life, health, and accident claims. Although not directly related, technology can improve the insurance claim process.
In the past, insurers had large IT departments who focused on building and maintaining complicated mainframe claim systems. In recent years, vendors have entered the market with cloud-based systems to improve claim processing efficiency. Internal IT teams can spend 80% of their time simply maintaining systems rather than improving business processes. As well as improving efficiency, cloud technology improves flexibility for integration and scalability for growth.
As Tom Scales, Celent Analyst said in a recent article, running a data center is not a core competency of an insurer. Moving to the cloud from a legacy system can revolutionize insurance processes, and in turn, improve product offerings and customer service.
Consumer expectations are increasing due to the role technology plays in everyday life. Insurance customers expect on-demand services, in line with other industries such as banking. Implementing mobile services, data, and analytics enables insurers to offer a more customer-friendly service using real-time data.
Focusing on the customer experience throughout the claim cycle can help modify the process leading to increased satisfaction. Claimants expect insurers to be honest, reliable and transparent with them; It is not enough to process claims internally and ignore the claimant throughout. Portals, accessible through mobile devices, have become increasingly popular, allowing claimants to monitor the status of their claim without contacting a call center. This allows claimants to have on-demand access to real-time information while reducing pressure on call centers. Portals can also be used by claimants to create new claims and download forms.
Data and analytics enhancements can help to improve the overall customer experience. Legacy systems have caused silos of data to be stored in isolation. Integrating this data opens up opportunities for insurers to analyze it further and gain useful insights. These insights can be used to detect high-risk or fraudulent claims and improve underwriting capabilities, reducing risk and associated costs.
Insurers who have implemented, or have considered implementing cloud-based technology tend to see technology as an opportunity as opposed to a threat. Technology is the basis for the insurance industry of the future; Improving transparency, streamlining processes, creating mobility and generating flexibility is key to ensuring your processes can bring you into the future!