Technology has always been positioned to solve insurance claim problems, but it has been unable to so far; yet, a singular solution is an answer to accelerate claims workflows after all.
Claims handling and settlement is the most significant cost center for any insurance organization. Paid losses plus investigative and settlement expenses accounted for around 70 percent of US premiums collected in 2020, as per the S&P Global Market Intelligence data. The primary reason for it is the sheer amount of workforce needed to manage, process, and execute the claims raised by the customers. Various stages within claims processing call for niche expertise, such as fraud detection and investigation. Many technology-based solutions were introduced, but none of them have delivered the original promise of simplifying the claims process, either for the company or the customer. Moreover, based on considerable research, the modern customer is more likely to opt for an omnichannel experience and business interaction without human contact.
Singular solutions have shown great promise in easing the claims settlement process by automating the workflows and helping insurance companies attain agility and efficiency in their operations. An automated claims management system contains various modules that address specific stages of the claims settlement process, thus easing the journey for the customer and the company. The insurance company can process claims with a substantially shorter turnaround time by automating the process, resulting in happy customers. That also helps boost the brand reputation to further up-selling and cross-selling opportunities. Moreover, customers can enjoy a truly digital experience with real-time updates, improved transparency in the process, and quicker resolution.