Property and casualty (P&C) providers are working hard to automate claims or make them touchless to increase efficiency and generate cost savings. This enhanced efficiency allows insurers to make claim resolutions faster, improving customer service.
Better service means that insureds, who expect the digital and immediate experience they get everywhere else, will likely remain loyal for longer.
A recent McKinsey report notes the urgency of automating claims like “attackers” such as Lemonade, as well as the tantalizing potential of digitalized claims processing:
With new attackers on the hunt for customers, incumbents must move quickly to integrate digital technologies into their operations. For the P&C industry, digitizing the claims function holds tremendous potential. To capture the value of digital, P&C claims functions must embark on a transformation to become a customer-centric, digitally enabled organization that excels in the three foundational areas of claims— customer experience, efficiency, and effectiveness.
Enhancing the Business Via Speed
P&C insurers intuitively understand that high-powered claims capabilities build strong customer loyalty and improve customer retention. An Accenture survey of automobile and home insurance companies across 14 countries found that “speed of settlement” is a crucial contributor to customer loyalty. It was cited by 94 percent of survey participants as a key expectation when interacting with insurers during the claims process. The same survey found that 59 percent of those queried would provide personal information about themselves to their insurer in exchange for faster claims settlements.
LexisNexis Risk Solutions, meanwhile, surveyed 24 auto insurance executives and found that “carriers who want to remain competitive will need to make the move to virtual (claims) and consider touchless processing if customer preferences are any indication.”
They define “virtual handling” as a customer or agent taking photos or recording video that enables a claims adjuster to perform the damage assessment remotely. “Touchless handling” is the next step: no humans are involved, so the process is entirely technological. If the claim meets approved criteria, it is paid automatically.
This trend towards automation shows no signs of abating. Seventy-nine (79) percent of surveyed senior-level insurance executives said it was important to emphasize claims automation as a critical or top priority.
An automated claims process of course means less manual processing, which will lower costs and improve the overall experience for both customers and agents.
For more information, please stay tuned for my upcoming eBook, “The ABCs of Automated Claims.”