There is no doubt technology has reimaged the way many industries operate.
For the insurance sector, now is the time to stop toying with buzzwords and actually begin to embrace new technologies. The ultimate priority? To deliver an exceptional customer experience to build authority and trust in a fiercely competitive market.
The biggest opportunity lies with the outdated claims management journey, which is often a source of frustration for insurance customers. Insurance companies willing to invest in cutting-edge technology – such as an online end-to-end claims management tool – will save time, skyrocket customer satisfaction, reduce operational costs and deliver a clear return on investment (ROI).
For insurers who choose to delay their modernisation journey, they risk being left behind and potentially losing considerable market share.
Let’s look at five key reasons why insurance businesses need to transform with a cloud-based claims management platform.
1. Close the customer experience gap
The typical consumer has become more solutions focused. Today’s insurance customer expects a digital-first, omnichannel experience – one that is simple, streamlined, and outcome-driven. We’ve seen how in-home entertainment, transport, and food service industries have been transformed with tech. The insurers of tomorrow have already begun that transformation now.
The moment of truth for an insurer comes when it’s time to deliver on your promises and review an insurance claim. It’s already an emotionally charged, stressful time for your policyholders. A poor claims experience will only drive negative reviews, customers won’t renew their policies, and you’ll lose market share. A modern, customer-first experience is quickly becoming the ultimate competitive differentiator. By utilising technology in the way you operate and service customers, you are guaranteed to offer superior experiences.
2. Improve key performance indicators
After customer satisfaction, one of the biggest benefits of a cloud-based claims management system is the impact on the efficiency and effectiveness of the claims process.
Efficiency leaves a lot to be desired in the current claims process due to the lack of visibility and poor communication across a distributed workforce and supply chain. You can combat this with a system that gives you live insights and visibility across the entire claim. The automation of manual processes with intelligent workflow, reduces human error and directly impacts operational efficiency. This saves time and money across the entire supply chain, including reducing the claim lifecycle by up to 2 weeks.
Accurate reporting across the supply chain is paramount to enhance effectiveness of the claims process. Access to a powerful, simple, single source of truth with verifiable history and attribution for all parties involved is imperative. On the quest for digital maturity, insurers need to create a centralised claims ecosystem that adds value for customers and drives accuracy. This is even more critical with changing statutory obligations that insurers have to their customers and a data driven platform provides better claim oversight.
3. Modernise legacy systems
Too many insurance businesses are held back by legacy systems, dirty data and manual processes. Because of the time and money invested into these outdated systems, it’s often hard to shift internal mindsets towards modernisation. But there is no need to reinvent the wheel and completely rip out everything you’ve built and start again.
With the right tool, you can scaffold around your existing system, integrate them together, or transition to a new, modern platform. That way, you can digitise the entire claims process by interconnecting the supply chain, automating manual processes, and connecting everything in one place for even greater customer outcomes. This results in potentially millions of dollars of savings across travel time, overheads, resource costs, customer retention, and other strategic areas.
4. Untangle the triangle of confusion
Confusing or lack of communication throughout the claims process is one of the biggest customer complaints. It’s not hard to see why. The current claim management system involves three, disconnected parties:
- The insurer
- The insurance supplier
- The subcontractor
And then there’s your customer, right in the centre of it all. Multiple parties are appointed to deal with the claim without having access to the data and communication of other stakeholders. It’s incredibly frustrating for your customer. Different systems of reporting and performance result in a deeply dissatisfactory experience for the client who’s unlikely to renew their policy.
The supply-chain needs a single source of truth – one platform that can streamline communications and ensure the communality of data. The result? Customers who benefit from a smooth, clear, and fast claims process that restores their confidence in the insurance industry. A bonus is an improvement to the insurer’s bottom line and improved business performance because of the customer’s restored confidence.
Ensure business continuity
We don’t need a refresher on the past two years of world events. But it’s becoming increasingly clear that remote options for completing work are paramount to keeping teams and customers safe, and for ensuring business continuity. With a cloud-based end-to-end system, your team can assess claims or complete work remotely - in any situation- whether that’s extreme weather or an unforeseen crisis. You can also reallocate resources from other parts of the country, or the world, to meet local demands.
If you’re on the back foot with digital transformation, you’ll also be the slowest to react to a market shift. Laying the groundwork now means that you’ll be able to quickly pivot in the future, whether that means meeting the changing demands of your industry, regulations, or customer expectations.
The path forward
The insurance industry is at a critical crossroads. Customers expect fast and smooth claims management, and a modern customer experience. As the competition heats up in the marketplace, it’s essential to invest in an all-in-one project management software that has everything you need to transform the digital claims journey and drive your business forward.
Digitisation directly impacts customer retention, creates a competitive advantage, and reduces costs. Adopting a digital-first approach places forward-thinking insurance companies on the path to establishing a strong foothold in this competitive market. The opposite is also true. Insurers reluctant to explore and invest in digital processes risk being left behind, losing market share, and will struggle to adapt and pivot quickly in the future.