2022 Trends in automated claims processing

Customers are driving the digital claims shift – not insurers

It hasn’t escaped anyone that the pandemic has accelerated digitization and new ways of working around the globe – and the insurance industry is no exception. Generally speaking, there’s a whole new digital maturity across all generations, not just among Millennials and Gen Z. This year will be a game-changer for automated claims processing, and in this post, we will tell you about our trendspotting for 2022.

Your most dominant buyers do not follow a traditional lifestyle

In 2022, change will accelerate even more and create significant opportunities for those who are prepared to meet the demands of a new generation. Gen Z and Millennials have become your most dominant insurance buyers, and they do not follow the traditional lifestyle. They have greater expectations of your offer and an increased desire for innovative and value-added services. One example is that insurers must support a broad array of digital payment options – both when it comes to paying premiums and paying out claims.

Flexibility and mobility are key

These new generations are more flexible, mobile, and digitally advanced than ever before. They will travel cross-borders and spend more time working at home or at rental offices, which puts new demands on the insurance provider. The geographical places you operate in will not be as crucial since a growing customer base would want to meet you online. They want to handle their claims on the bus, on vacation, or while standing in line at the supermarket. And it needs to be an easy, seamless experience. How they prefer it, and whenever they want to. To keep up with customer expectations, you must be agile and prepare your business to respond and meet the demands of the ever more connected customer.

The need for personalized solutions

These new digital habits and needs are trends that the industry needs to meet. And with that, it places greater demands on having personalized solutions for the customer. They should be able to choose how they want to report incidents and make claims to get a fully automated experience. Your customers are driving the digital shift with an “outside-in” demand, where you move away from a transaction focus to create holistic, compelling experiences.

To provide this, insurance companies must reinvent themselves and deliver customized products and highly personalized services to meet new expectations from customers. It is also crucial for keeping up with new digital leaders and disruptors that move fast and agile to offer the complete customer journey and not only segregated parts of the insurance lifecycle. Your new competitors are no longer just traditional rivals but might be coming from other sectors. Just look at what happened to the publishing and music industry in the wake of digital distribution. 

Customers crave the automated claims process of the future

We see a constantly increasing need for cloud-based solutions and solutions tailored specifically to customers. And the fact is that, regarding automated claims processing, our customers are already present in the future. Today, many insurers offer the ability to report incidents digitally, but the claim is still handled manually. However, genuinely automated digital flows will become more popular, and we’re approaching a higher degree of “No touch claims”.

In addition to this, large parts of the claims process will have to be optimized. The days of logging in to “My profile” will be long gone, and your customers will expect you to offer claims settlements through the help of chatbots, apps, voice recognition software, or image and photo recognition.

Data create wins for both company and customer

Many professionals within the insurance industry are aware that their customers’ personal information could create profitability. However, it can also be of massive benefit to the customer. The insurer can, for example, personalize insurances based on each individual’s situation and usage by utilizing customer data. The customer can get the exact insurance they need and receive fair compensation when there’s a lesser risk of them being under- or overinsured.

One example of this is Usage-based insurance (UBI), or Pay-as-you-drive (PAYD), where the customer is insured based on their driving behavior, vehicle type, and place. This success factor generates data on a whole new level of detail, where you can draw new conclusions and customize your solutions. And your customers are already on board. 67% of customers would be willing to have a sensor attached to their car or home if it could reduce premiums. In addition to this, 49% would be prepared to provide their insurer with additional personal and lifestyle information to enable them to seek the best deal for relevant services on their behalf.

Dare to be the driving force

Today, as little as 14% of insurance professionals rate their insurer’s ability to provide personalized products and experiences to be “excellent or good.” So by getting to know your new customers, using relevant data, and driving digitization and automated claims processes, you can be one step ahead in the increasingly competitive market. Today, this might seem innovative and like being at the forefront. But in a few years, this will be the industry norm.

Suppose you can meet your customers in a digital flow and create a fully automated solution from the time of incident until the customer receives money in their bank account or a new unit in their hands. In that case, you can be one step ahead of the game because it will be something that customers expect when they meet with their insurance company.

Trends that you as an insurer must consider: 

• The non-traditional lifestyle of the younger generation dominating the insurance industry. They will need flexibility and the ability to solve their claims at any given time.
• You need to add value to their services as they have high expectations. Their “outside-in” demands require customized solutions.
• Adaptation of digital payment options needs to be embedded in the solutions and offerings.
• By becoming increasingly digital and automated, you can generate data that helps you optimize your offers and create tailored solutions for the individual customer.
• Be attentive and get to know the new generation of customers and how they want to communicate with their insurer. Dare to be one step ahead of competitors and make an effort to meet your customers’ needs.

By reading this post, we hope you have gained some new insights about the future of insurance, the need for digitization in the industry, and automated claims processing. If you want to learn more about how you can create a better customer experience, you are welcome to download our report Claims Valuation the Upptec Way. Got any questions about how future trends will affect your insurance business? Do not hesitate to contact us at Upptec.