New digital age technological developments have produced opportunities for insurance companies. Now, they can easily manage claims, improve workforce productivity, and create positive customer experiences for better customer retention.
Three important business capabilities:
- Capture and manage information
- Improve collaboration
- Capitalize effectively on the experience and expertise of claims professionals.
Leveraging Technology to Capture and Manage Information: Insurance Claims in the Age of Big Data
During the handling and management of an insurance claim, many forms of information are exchanged between various involved parties. Today, new digital technologies have created access to enormous volumes of both structured and unstructured data, presenting both huge opportunities and considerable challenges for insurers.
Information exchange during the claims process can become quite complicated. Policyholders, beneficiaries, and claimants interact directly with the insurer through several channels: speaking with an agent or broker, communicating through the insurer’s website, calling a support line and interacting with call center representatives, and even using the company’s official mobile app. In many cases, insurance companies must also communicate about a claim with various third parties, like auto repair shops, healthcare providers, and law enforcement.
For insurers, it’s important to be able to effectively capture, manage, and route any relevant pieces of information related to a claim. Many companies have separate units that deal with specialized aspects of claims, such as medical review, litigation management, salvage, and special fraud investigation units. In some cases, each department uses specific IT solutions, with little crossover or integration between other departments and their systems.
Although paper documents and fax are still used, insurance companies are more likely to use digital media: (such as)
- Scanned documents
- Digital pictures
- Digitized voice
One of the key objectives for insurers is to harness and manage all of this information and to facilitate better collaboration between people and processes. New technologies can help improve information sharing between individuals, supporting discussions, decisions, and actions that are informed by available data.
Using Cloud Technologies to Simplify the Claims Process
Cloud technologies have made it possible to enhance productivity and improve customer satisfaction. Here are examples of how to execute a collaborative environment:
- First Notice of Loss Reports. FNOL reports are received in several different ways: through an agent or broker, a call center representative, an online self-service portal, or a dedicated mobile app. Information from all of these various channels must be assembled and routed as quickly as possible, so that automated or human decisions can be made about establishing communication with relevant third parties.
- Catastrophe claims handling. After a natural disaster, insurers will often face a high volume of claims. Insurers need to coordinate actions from multiple parties to deliver timely responses to their policyholders. Technology can improve access and ease of information sharing with adjusters, law enforcement, local contractors, and government officials. Overall helping the insurer adequately serve their policyholders while reducing costs.
- Case management. Complex insurance claims can generate massive volumes of documentation, which need to be indexed, routed, stored, and retrieved by various parties. Rapid access to these details can allow authorized specialists to easily share and discuss the information, making the claims process more efficient.
How to Use Technology to Breed an Expert Team
Process improvement through technology solutions can also help improve productivity on the level of individual employees. When insurers can provide specialists with complete, comprehensive information, it becomes much easier to apply their skills and provide value to the organization.
Insurers use three key business capabilities to improve process efficiency:
- Information capture and management
- Collaboration between specialists and departments
- Practical use of an experts’ skills and knowledge
New technologies can help improve all of these capabilities, by capturing and storing more information and making it more readily available. These tools provide faster and more cohesive processing for claims, which ultimately improves an insurer’s profitability meanwhile delivering better experiences for policyholders.