Software legacies are stopping insurers success
Insurance companies should be devoted to minimizing the future risk as the nature of an insurance product itself. Claims legacy systems are a potential future hazard and is not future-proof as long as the company relies on the “old way” of doing things.
The ability to take care of the policyholders is becoming increasingly important and automation is a key area where the claims systems are lacking today. 77% of customers say that quicker claim resolution affects their decision of choosing a carrier.
This is just one dilemma for insurance companies when it comes to their legacy systems, but there are additional risks of not evolving into digital future-proof tools that can be scaled in accordance with the business.
Customer centric philosophy with a lean, digitally optimized for automation is what most companies are looking for. Something that can ensure a smoother process and make something that today is time-consuming simple and fast – and with the highest quality possible in the user experience both for the internal workforce but also for the policyholder if you will apply true self-service.
The claims automation transformation process is complex, but it also provides an opportunity to review structural legacy challenges in light of new capabilities, create the foundation for aligning the expectations, and securing a successful execution of claims automation.
Action plan for claims automation
Find the claims automation that provides company benefits and creates the desired customer experience. This includes strategic decisions regarding identification, valuation, and communication criteria for the claims automation process.
- Define what type of claims you want to automate. Exactly, not all claims should be automated. Some type of claims you need to take care of with a personal touch. Make sure that those types of repetitive tasks and claims are automated and define requirements and rules that will enable the claims process.
- Define the automation rules for the valuation of the specific claim. Based on your specific insurance terms and policies that are to be converted into automation rules in the claims management software. Automation will improve valuation variation of claims payments in the industry down from 10-12% to 1-2%. This only shows that valuation will also be one of the larger drivers for future success in the insurance industry.
- Define where you can add value for your customers. Customers still expect fantastic communication. Communication with the customer can be both automated and not, we can define the communication opportunities from the valuation to the relevant activity. Automation provides the opportunity to set rules for how to take further action based on the valuation. This can involve customized customer dialog and alternative recovery actions for the damaged object from repair, recycling, and replacement voucher.
Digitalization is a tremendous opportunity for the insurance industry to assure business continuity, leading to cost efficiency and customer satisfaction. Digital processes and tools enable sustainable operational efficiency and customer availability, this is essential in the increasing competitive market.
Upptec provides the insurance industry with automated claims solutions for everything in a home. Upptec combines years of experience of digital claims valuation with specialized skills to help insurance companies improve their performance and create sustainable value for their customers. Driving innovation and leading the future success of the insurance claims industry.
Trust is at the heart of customer experience
Behind-the-scene work is when the digital experience fails. Transparency is about more than what is happening in your digital channels. Trust can be complex, and it can be broken in a split second if transparency is not offered. So, if you want to enable automated claims processing you need to consider the level of trust and transparency between you and your customer. Making it simple is therefore a must in the customer experience journey.
Customers want to stay customers to insurance companies that make their lives easier – not more difficult.
Is your insurance comapny future-ready?
The future of insurance will be digital – and we’re here to help you future-proof your business.