Claims management is undergoing a major transformation due to the presence of COVID-19. The pandemic caused large-scale disruptions in a host of industries and operations and it even managed to penetrate the insurance industry and especially the claims management aspect of insurance. Let’s look at how insurtech is being implemented at all verticals to improve claims management and all the processes involved in it in a post-pandemic world.
Seamless and touchless claims:
Handling large volumes of claims meant being involved with tons of paperwork. As soon as the claim is filed by a policyholder to the point where it is reviewed and a settlement is estimated, all things are slowly becoming digital. In a paperless claims management system, insurtech is incorporating Big Data analytics and Machine Learning to create a compressed and efficient claims cycle which is focused on reducing costs and delivering superior customer claims experience.
Companies like Ping An primarily uses Big Data and Predictive Analysis in its claims service. Insurtech developments, especially around Blockchain, Artificial Intelligence(AI), and the Internet of Things(IoT), are providing faster on-boarding, automated workflows for claims processing.
Insurtech in inspections:
Telematics is implemented in personal and commercial vehicles to assess risk factors and detect patterns when a vehicle has been in an accident. Monitoring driving habits and adjusting auto insurance premiums of an individual by assessing their risk percentage is how insurtech is transforming the accuracy and efficiency with which claims are being handled.
For claims adjusters, incorporating insurtech is enabling them to become more efficient and accurate with their inspections. For smaller claims, immediate capture of damages through photos and videos taken by policyholders themselves using applications like Matterport and Hover is assisting adjusters with inspections. However, when it comes to larger claims, adjusters incorporate applications like JustEZ to assist them with various processes of the inspection. From scheduling inspections to navigating to the loss site and for documenting damages to inspecting the property.
Insurtech in customer service:
Customer service is an important marker for any insurer’s success and proliferation of business. Implementing chatbots and virtual assistants to interact with customers/claimants when personal contact is not required is an effective measure. With this addition, the claims processing process not only becomes more accurate but also increases its efficiency which results in a drastic reduction in claims cycle time. This further increases customer satisfaction to unprecedented levels.
The Progressive Corporation offers a chatbot called Flo to customers to assist them in claims and speed up the claim cycle process. Similarly, GEICO, another insurance giant in the USA offers a virtual assistant called Kate to its customers.
While the insurtech movement is still in its infancy, through the incorporation of insurtech in the claims management process, insurance carriers are showcasing a tremendous potential to have some of the biggest impacts on the performance of the industry. These trends will radically change the insurance industry and ensure that carriers, stakeholders as well as policyholders are in a position to benefit from all these advancements. Incorporating insurtech will not only change the industry but will also change the lives of those involved in the process.