Speed Matters: 3 Reasons Why Faster Claims are Better for Insurers
What’s in a Claim
Often referred to as “the moment of truth,” a claim represents the intersection of a predictable risk calculated by the insurer with an unplanned, adverse event in the life of the insured.
It’s not hard to understand why claims is often characterized as the most significant touch-point in the provider-policyholder relationship. You could be offering unrivaled quotes, seamless underwriting, a diverse array of products, and outstanding service. But without a positive claims experience, there is a good chance your customer will start looking at your competitors to handle their future insurance needs.
What makes a positive claims experience? According to an Accenture customer service study, 95% of policyholders rated speed of settlement as the top factor in their level of satisfaction.
Why Faster is Better
Beneficial to both provider and policyholder, a faster claims process
- Improves customer satisfaction and retention,
- Increases efficiency and lowers costs, and
- Expedites settlements.
1. Improve Customer Satisfaction and Retention
Consumers have come to expect speed and efficiency in all their brand interactions, and insurance companies are no exception. While every communication between you and your policyholder provides an opportunity to demonstrate your value, a swift and painless claims process is crucial to earning the kind of trust that builds a strong brand and loyal customer base.
According to a recent EY study, 87% of policyholders reported that the claims experience significantly impacts their decision to remain with their current insurance provider.
Clearly, claims is not just another cog in the customer journey.
2. Increase Efficiency and Lower Costs
A well-designed claims management system simplifies the entire process for both you and your policyholders. With the recent surge of insurtech options, automated claims processing is quickly becoming a top priority for insurance companies. The new claims ecosystem includes mobile apps for self-reporting, remote data collection via drones and satellites, Robotic Process Automation (RPA), and automated claims payments, among other solutions.
By leveraging technology, you replace the time-consuming manual methods of the past and reduce the chance of costly errors. Minimizing the claims cycle time also allows you to dedicate more resources toward innovative projects, customer retention strategies, and other revenue-generating opportunities.
3. Expedite the Settlement
Once damages have been assessed and the claims amount is agreed upon, it’s usually in everybody’s best interest to settle and close the case without undue delay. The quicker the settlement is disbursed, the sooner your policyholder can return to life as it was before the loss occurred. Outstanding bills can finally be paid, facilitating “business as usual” for all involved parties.
Additionally, an expedited settlement reduces the chances of extended litigation and other last-minute changes that can complicate the process and impede your customer’s ability to move forward after their claim.
How to Speed up the Claims Process
If you're not ready for a brand new, fully automated claims management system, you can still improve your policyholders' experience by upgrading just one or two processes that will contribute to a faster, more efficient settlement.
Begin by evaluating your current practices, and look for procedural bottlenecks that could benefit from automation. How do you gather incident details, process data, calculate costs, communicate with claimants, and disburse payments?
Once you've identified your efficiency gaps, organize them by level of impact, cost, and/or ease of implementation - whichever is the priority for your organization. Research your available options until you find one (or more) that best meets the needs of both you and your policyholders.
Remember, how you handle claims – and how fast – can make the difference between a life-long customer and a cancelled policy. As the defining moment in the customer journey, a swift and efficient claims process should be a top concern for insurers today.
Contact us today to learn how One Inc's Digital Claims Payments solution can help your organization.
As the lead writer at One Inc, Patricia is passionate about helping insurance companies successfully overcome modern industry challenges. She offers news, stories, and tips to help insurance professionals improve sales and retention, enjoy greater operations efficiency, and provide the best value possible to your policyholders.