The Amazon effect has become common parlance in recent years to describe how the ubiquitous online retailer has changed the game in customer experience design and doing business everywhere. Thanks to Amazon, along with other trailblazing consumer apps and ecommerce brands, customer expectations around service, convenience, and what makes a slick, streamlined digital journey have permanently transformed – in retail, and beyond.
In insurance, the claims process is the latest area of the customer lifecycle to demand the Amazon treatment. As any insurance customer will no doubt agree, insurance claims can be notoriously slow and clunky, with a lack of clarity and communication around expectations, timings, and issues that arise along the way. Research by Which? found that 48% of people making an insurance claim experienced at least one problem, while 27% experienced three or more issues during their claim journey.
While the insurance claims journey is arguably more complex than e-commerce, the fundamental challenges are the same. Customers want their claims dealt with quickly, conveniently, with minimum friction, and clear communication throughout. And the technology now exists to enable almost any insurance business to offer this to their customers, even without an Amazon budget, extensive resources, or sophisticated back end.
Here’s an overview of what the Amazon experience looks like now in insurance claims.
Self-service FNOL
Claims made via phone and email are still the norm for many insurers and MGAs, bringing unnecessary friction for customers and the business.
While there will always be customers who want to talk to a human being, self-service portals streamline the process significantly, enabling customers to lodge their FNOL (first notification of loss) when it suits them, inputting all the required documentation at the click of a button, much like making their Amazon purchases. It means less back-and-forth on the phone and email – saving time for them, and for the business.
Introducing self-service claims doesn’t require a full redesign of your claims process. Insly’s claims portal acts as an intelligent front end that sits over any core claims system to capture FNOL, extract and validate claims data, and feed structured information directly into the back-office system – without requiring the policyholder to pick up the phone.
A clear delivery timeline
Ask any insurance customer what they dislike most about claims, and they’re likely to say the delays, along with a lack of clarity over claims progress, or having to chase their provider for information. In fact, research has found that 35% of policyholders say delays in receiving compensation are the worst part of making an insurance claim, while 10% say the stress of chasing delayed claims has become so severe they give up entirely.
Contrast that with the Amazon experience, which is famed not only for its speed of delivery (as soon as the same day with Amazon Prime), but transparency, so customers receive an exact delivery day plus detailed tracking information. This CX is now fully replicable by insurers and MGAs through Insly’s claims portal, which gives customers real-time visibility of their claim status, alongside expected payout and full claims history. So, the days of chasing MGAs and insurers for an update are officially over.
A truly omnichannel approach
Every interaction with Amazon feels natural and almost effortless, from purchasing to returns, or contacting customer service, with a consistent experience across channels. Yet, the opposite sometimes feels true with insurance claims, as customers struggle to access the answers and information they need when they need them.
Insurance providers can combat this by ensuring total integration across their self-service and advisor portals, so that claims handlers and loss adjusters can carry out FNOL, claim administration, and answer queries over the phone, via email, or via chat, with access to the same interface and information as on the self-service portal. This ensures there is a single source of truth, so customers enjoy the seamless feeling they get on other consumer sites.
Speed of delivery
Plenty of us have become hooked on how quickly Amazon can turn around and deliver orders – the same can’t be said for many claims journeys. But with the technology available today, there is no reason why many straightforward claims can’t be processed and resolved in similar timeframes to Amazon Prime, based on pre-defined criteria.
For example, Insly’s claims portal offers no-touch claims, requiring no adjuster involvement at all. Plus, the advisor interface includes an AI recommendation layer, which produces a recommendation – approve or reject – alongside a confidence level and the reasoning behind it. So claims handlers and loss adjusters have everything they need to make a fast, well-informed decision.
Customer satisfaction + business impact
Claims have historically been an afterthought for insurance companies; now they are top of the agenda. By making the insurance claims process as smooth, simple, and satisfying as the best ecommerce journeys, insurance businesses have an opportunity to not only increase customer satisfaction but also enjoy customer retention rates of the ecommerce giants, while reducing costs in the process. And that’s a result even Jeff Bezos would be proud of.
Insly’s new claims portal enables MGAs and insurers to give policyholders a modern, self-service claims experience, including real-time visibility of claims status – much like the interface of an e-commerce or food delivery app. With an AI recommendation layer, the portal also aids claims advisors in making fast, well-informed claims decisions. Find out more here.
