One question every insurer must look to answer if they must continue to grow their portfolio is how can we improve claims processes for consumers? Many consumers believe that the Insurance industry has a backlog of claims and slow claims processing time. As the critical element in policyholders experience, making sure avoidable slow claims processing time does not hinder the retention of policyholders is important for incumbent insurance organisations.
With digitalisation and new customer behaviours pivoting into the sector, the success of any insurance company depends on how quickly and efficiently it can process claims. It is also potentially where it could lose out on renewal contracts. Claims must be handled in a way that leaves customers satisfied with their experience. For policyholders, this means receiving a claims check faster.
Moreover, a better claims process can help you deliver a compassionate, quick response when customers are in need. Policyholder’s rarely file claims because they have something positive going on in their lives. Policyholders mainly file claims when dealing with an accident, death of a loved one, Injury, loss of property, or other challenges. It’s not a great time for them and with a better claims process, you can help them ease this pain.
So what can be done to improve your claims process, so more policyholders are satisfied?
Settle Insurance Claims Expectations Early:
Policyholders feeling cheated is one of the main issues insurers are facing with claims processing. Sometimes, policyholders expect a particular claims settlement amount, and when they get anything lower, they feel like they are getting ripped off.
Potential clients need to know what to expect when they buy a policy from you. They want to know what the claims process is like, where to go when they need something, who to reach out to when they need answers etc.
More customers are comfortable communicating online, and these channels must keep your customers engaged and informed. Ultimately, feedback from managing customers expectations can increase your ability as an insurer to prioritise interests, priorities and improve claims process experience.
Create The Proper Data Collection And Processing Systems:
To provide a seamless experience for your policyholders by ensuring you collect the correct data and process claims fast, your insurance systems need to be in Sync. They should be able to store, share, and use that data. That data also needs to flow from the initial information collection, underwriting, policy administration to claims.
With this system in place, complexity and errors are significantly reduced. As an insurer, managing hefty volumes of paper claims are challenges you shouldn’t be facing now. Digitalising information-intensive processes such as Document classification, page separation, data extraction and validation capabilities will reduce operational costs, improve turnaround times and drive robust capture-to-process applications.
Improve Communication To Suit Policyholder’s Preferences:
It is way easier to secure a customer’s trust by being available whenever they need you. When customers can reach out anytime to update their claims processing or when insurers make it a point of duty to send regular updates, they feel more secure.
A lot of customers value clear and constant communication. This clear communication can be improved by giving your customers the opportunity to reach out to you on multiple channels. If assistance is needed at any point, they can easily reach out. It is also vital that, as an insurer, you understand the importance of creating an experience where customers feel heard as opposed to sharing information that they are not interested in.
We live in a world where most people are social, and they share experiences every chance they get. This behaviour can be leveraged to boost word of mouth testimonials as an insurance industry. People tend to turn to social media to air their grievances about lousy service and commend a brand when they get a good experience.
Speed and Transparency of the Claims Process:
Insurance companies have a reputation for being slow and opaque in their claims processes. This is why speed in processing claims is so appealing to many customers. It’s not just about speed now; transparency is also essential.
When it comes to Insurance companies, there’s no shortage of horror stories in the reviews. The most common complaints are long wait times before receiving a claim payout.
People want to see what’s happening with their claim at all times. You need to give a clear picture and real-time information on what they need to do next. They want to know where they are in the process. What needs to happen next, and when to expect the money. It’s not enough for companies to just “do right by customers”. They have to prove it as well.
For example, if you use EOBs (Explanation of Benefits) to communicate your claims payment status, there’s a chance your policyholder won’t may never understand what happened. EOBs can be confusing and misleading, and your goal is to be transparent, not misleading.
In the insurance industry, it’s essential to process claims promptly. By following these four (4) tips, you can improve claims process and make it easier for both policyholders and yourself.