The insurance industry, driven by current technological trends such as the internet industry, big data and analytics, blockchain, is seeing many changes, which are changing its effectiveness dynamically and irreversibly. Let’s take a look at the top trends affecting the industry and discuss the various challenges driving current insurete priorities and see if we can call the most important of them.
Every industry has its leaders and lags behind and the insurance industry is no exception. Deep Pocket Some insurers have taken advantage of digital technology to change the way they operate, including:
- Provide new models and personalized products to meet changing customer expectations driven by online retail sales models,
- Partner with technology players to keep abreast of emerging technology trends and take advantage of the Internet of Things to adopt connected sensors or devices to collect data to prevent losses and employ more pricing methods in property and lethal life as life health insurance.
- Create a cyber-security strategy to protect sensitive personal and business data stored by them and to comply with privacy rules.
- Adopt cloud computing, AI and automation to quickly settle claims for better customer satisfaction to improve speed and flexibility,
- Use advanced analytics to gain strategic insights and to actively plan for future business offers and gain competitive advantage.
- Consider the use of blockchain technology to add “smart” contracts and secure, decentralized data collection, processing and dissemination in their processes.
Are these strategic initiatives enough to enable companies to take them to enjoy industry and market leadership and ultimately success? As the channel expands or the business model develops, what skills do insurers need to prepare themselves to meet the needs of the industry? How can insurers prepare for tomorrow’s claims as they meet today’s expectations? The purpose of this post is to post that many insurance providers are failing to recognize the importance of managing claims towards their business, even focusing on other strategic hurdles they face. Let us explain why.
It’s an open secret that customers are always happy with the experience of a good claim settlement, but get very upset after their claim is delayed, disputed or rejected and start posting strong negative online feedback. Although claim satisfaction is a very important component of the challenge of managing an insurer’s overall customer relationship, for the time being it is only in progress for most. Instead, they should focus on their customers and also on the internal, as they deeply investigate the causes of customer dissatisfaction:
- Insurers need to pay close attention to customer feedback and satisfaction levels with their claim submission process and settlement experience, especially when they are rejected.
- Insurers need to capture customer feedback and factor it into the way their processes are working and clear their sales pitch itself and see if the claim is fairly rejected.
- In this key area of customer satisfaction they should pay close attention to their reputation, which can affect their ability to retain the customer.
- It must be remembered that dissatisfied customers do not return for additional coverage or any other policy.
- Even agents who raise the voice of too many customers against the insurer claims settlement process take their business away from them.
- Fulfillment of demands has become a smooth process and the customer experience needs to be expanded to handle claims smoothly.
- Insurers can use technology to provide more options for uploading claims, including increased speed and accuracy and reduced contact points with people.
- Algorithms can more easily identify fraudulent claims, improving the ability to handle claims. Data managed claims prevention helps reduce costs and provide value by predicting actual risks and reducing premiums.
When it comes to manipulating the fine balance between detecting fraudulent claims and making legitimate claims, insurance providers can become very strict or overly suspicious and create a negative relationship with the customer. This does not mean, however, that they can believe and approve of every claim in a just manner. Any misconduct, real or imagined may determine whether a policy is renewed, or our online reputation suffers, or the insurer may face legal disputes in court. Insurers even work hard to identify the technologies needed to expand their distribution channels and ensure optimal customer journeys; They cannot lose sight of the importance of removing fraudulent claims from their list of priorities. For that reason, we think that handling claims can challenge Insuretech’s priorities for the insurance industry. What do you think? Write and share your thoughts.