4 Key Challenges Faced By Insurance Carriers In USA

Need For Automation:

Selling insurance is a multi-faceted process, involving a variety of operations that often need to be outsourced. Most insurance carriers hire a TPA to perform functions such as communications, maintaining company database as well as customer support and services. Slow and resource-intensive manual processes such as these require automation in order to become streamlined. With greater efficiency, there is bound to be a reduction in costs as businesses go online and organizational structure is automated, with less manual input.

Changes in Client’s Expectations:

In a world shaped by hassle-free experience for customers; with all kinds of businesses moving towards providing seamless services, a major challenge for insurance carriers is to provide their customers with a frictionless experience. Insurance companies now have to take advantage of technologies such as mobile, social and cloud services to deepen their connection with clients and creating a space where services are rendered on the go. The digital shoes that insurance carriers have to fit in are surely large but with the right approach and business mindset, they can set a course to attain digital excellence.

Competition:

In today’s market, insurance firms face stiff competition from their counterparts in the industry. Digitization has led to enhanced profitability which has led to a sizeable number of insurance carriers competing with each other. To stay in business, any carrier has to come up with profitable innovation. Each carrier looks for best practices in selling their insurance policies in the best possible way. Competitive prices coupled with customer-centricity increases the challenge between competing insurance firms across the market.

Fraud Detection:

Measuring fraud in insurance claims is an elusive target. In the United States of America, insurance fraud cases cost more than $40 billion per year according to reports by the FBI. With a large number of claims coming their way, it is a difficult task to assess the validity of each and every claim for an insurance carrier. However, with digitization, this challenge is being taken head-on. The implementation of proper background checks, along with the presence of technologies like blockchain and smart contracts is enhancing the trust factor between parties involved in a financial exchange.

These are some of the challenges that insurance carriers face in today’s world. In a digitized age, bridging the gap between current capabilities and ideal operating models is the need for growth in businesses. Applications like JustEZ, which provide streamlined services for adjusters who perform important functions for carriers are another implementation that can be beneficial for both carriers as well as claims adjusters who work for them.