Efficient claims management is the cornerstone of a successful insurance brand. As your claims department is the most common touch point for customers, all processes involved in the claims journey should be simple and streamlined. That means everything from submitting an initial claim to getting a final settlement should be completed as soon as possible, and with a high degree of accuracy.
A recent survey found that 47% of insurance customers are looking to switch providers, with six in ten people citing poor claims management processes as the primary reason they are looking elsewhere for cover. Among other actions, claims processing automation can help insurers and MGAs streamline claims management, reduce human error and help brands scale their operations.
This article will explore the benefits of claims processing automation and outline how Insly’s latest product features can help you improve your business’s profitability.
Pitfalls in the customer claims processing journey
Currently, only 4% of insurance brands offer fully-automated self-service claims platforms to their insurance customers. This surprising figure indicates a lack of awareness in the capabilities of claims processing automation technologies. Consequently, these figures also suggest that the vast majority of insurance firms and MGAs are facing a number of inefficiencies in their claims handling processes. These include:
1. Manual input results in time and money wasted
A recent study of insurance providers found that it takes an average of four days to approve an insurance claim. For most insurers, the process is labour-intensive, involving around three to four customer interactions via telephone, email, or PDF form sharing.
Manual claims handling processes help insurers gather and verify the information and thus help businesses maintain regulatory compliance. However, reliance on human input in the claims process also opens insurers up to human error. Furthermore, alongside the other duties teams have to perform (such as attending training, meetings etc), manual verification techniques are also very time-consuming and can impede their productivity in general.
For instance, gaps in information and mistakes in data input take time to rectify and incur extra resources. Plus, there’s the possibility admin errors in claims paperwork could result in the settlement becoming more expensive to the insurer, thus harming the business’s profitability in the long term.
2. Legacy systems prevent good data governance
The use of excel spreadsheets and emails make it difficult for insurance teams to streamline their operations. As a result, advisors can face difficulties in ensuring their customers receive the best customer service (rather than wasting time opening information sources or searching for relevant data).
Additionally, legacy systems have an issue in that some data can become lost or inaccessible and thus cost the insurance company more time and resources in retrieving claims information.
3. Outdated systems impact readiness for compliance
Financial services compliance is constantly changing and becoming more digitised as time goes on. As such, updating enterprise-wide systems with accurate claims data in real-time will become increasingly vital as countries around the world adopt fully-digitised taxation and information governance procedures.
Insurance firms must therefore ensure they have the technologies in place to maintain flawless audit trails at all times. From a reputational standpoint, avoiding costly compliance penalties is key to ensuring your insurance brand’s favour with increasingly discerning insurance customers.
Benefits of claims processing automation
Insly’s latest platform update features powerful claims processing automation tools, offering the following benefits to insurance customer service teams and advisors:
1. Simplifies data extraction and entry
Insly’s tools allow advice teams to enter customer claims details into their systems once and apply them to all relevant policy and claims documents automatically.
2. Integrates with your existing tech stack
Claims management is a complex process that involves several business divisions; customer services, administration, and, in cases of complaints handling, managerial departments.
Insly’s low/no-code modular setup is designed to integrate seamlessly with your existing IT systems (such as CRM, calendars, email etc) in all departments, helping you speed up claims management processes. The setup can improve customer response times and consequently boost customer satisfaction scores.
3. Helps you maintain regulatory compliance
Claims processing automation tools must also integrate smoothly with your finance software to ensure that financial KPIs can be monitored accurately in real-time. Insly features accounts and Bordereaux reporting software to help you maintain a flawless audit trail. It also flags incorrect or incomplete claims information in forms and documents, assisting teams in reconciling inconsistencies before they become a drain on your resources.
4. Saves labour costs and improves brand scalability
Automating the claims process eliminates labour-intensive tasks like claims verification, document generation, error tracing, and more. You can optimise your labour costs by investing in tools like Insly, which uses rules-based algorithms to complete core but repetitive functions on your claims management team’s behalf.
A study from Lightico found that using automation in insurance claims processing can settle claims up to 85% faster, reduce human touch points by 60% and improve customer satisfaction scores by 15% overall. These benefits prove that investing in insurance platforms like Insly can help you increase your business’s capacity and scale your operations more effectively.
Improve the claims customer experience with Insly’s new claims processing automation tools
Experts predict that by 2027 claims processing automation tools will lower insurance operation costs by a staggering £136 billion worldwide. So, ensure that your insurance company or MGA starts reaping the benefits of our low/no-code platform in powering your claims management processes today.
We have over 20 years of experience in the Insurtech industry and collaborate with an extensive network of insurance and technology experts. Our partners and customers help us develop ideal-fit solutions for a wide range of insurance underwriting tasks, including document generation, accounts reporting, claims management and more.
So why not get in touch with the team today to view an Insly demo, and find out how our platform can boost your business’s bottom line?
