News & Analysis

8 Ways Insurers Can Transform their Claims Process

By Virender Jeet

Disbursement of claims is one of the most crucial tasks for insurance companies and their customers. The speed and accuracy with which claims are settled directly impacts customer satisfaction. Insurance companies are shifting their focus to streamline the claims process for faster turnaround times, improved claim outcomes, reduced processing costs, and a delightful customer experience.

Here are eight ways in which insurance companies can gain a competitive advantage by transforming their claims processes:

  1. Plan a transformation roadmap for implementation

It is important to understand where improvements are required in your claims process. Identifying the gaps in the value chain will help you evaluate potential solutions for process optimization and weigh the benefits against the estimated investment. It will also help you prioritize and develop a sustainable plan.

  1. Fully automate the claims lifecycle

End-to-end process automation increases the control an insurer has over the lifecycle of a claim. Digitizing both front and back-end processes provides a unified view of the customer and monitors real-time updates about the status of the claim. An automated system makes for a hassle-free settlement process and provides an omnichannel customer experience.

  1. Streamline the journey with centralized workflow automation

Create a user-friendly system for claims management by digitizing documents and leveraging mobility with a distributed capture model. A centralized workflow automation system that facilitates business rules management and activity monitoring can help in building a standard process across all channels.

  1. Use solution accelerators for seamless integration

Pre-built solution accelerators make the claims management process efficient, enabling organizations to swiftly implement an automation system. The accelerators integrate seamlessly with existing core systems and third-party applications. They can be deployed easily and quickly.

  1. Build a flexible and agile platform

The nature of claims disbursement varies on a case-to-case basis and would require a platform that is flexible and customizable. An agile framework built on a configurable platform is more responsive to change and quickly adapts to any situation.

  1. Focus oncustomer centricity

Customer experience is one of the top priorities of every enterprise. You need to ensure that any digitization is aimed at providing customers with a quick access to the required information to manage their claims. Personalize your interactions with the customer across all channels and tailor your strategy to suit their needs.

  1. Set up a fraud detection mechanism

It is crucial to thoroughly investigate a case to avoid insurance fraud. Opting for a fraud detection method as an integral part of process transformation can help in mitigating fraud risks. This provides a safety net to insurers and improves business outcomes.

  1. Leverage artificial intelligence and analytics

A key driver for successful digital transformation is the adoption of new-age technologies like artificial intelligence, analytics, robotic process automation, and social sensing. Capitalizing on these emerging tools enables an end-to-end customer journey and helps in delivering a contextual experience. Furthermore, data analytics detect fraudulent activities, if any, byidentifying patterns in the claims management process.

By transforming the claims process, insurers can reap benefits in three fundamental areas –operational efficiency, impact on business, and customer satisfaction.

Legacy systems often operate in silos and a lack of integration can hamper an organization’s performance. Claims transformation fills this gap and allows for fast and seamless process execution. Further, it enhances a customer’s overall digital experience from claim initiation to closure, thereby fostering a better relationship with your organization.

(The author is Senior Vice President – Sales & Marketing / Products – Newgen Software and the views expressed in this article are their own)

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