Streamline and automate claims-handling processes to build digital capability and unlock the ‘power of proactive’

Most people would agree that, if you were to ask them how they preferred to work, the answer would be “smarter, not harder”. But sometimes just finding the way to smarter working can seem like a mammoth task in itself.

Meredith Barnes-Cook, Ushur’s global head of insurance, is participating in a panel on process automation called “Build your digital capability by leveraging technology to streamline and automate claims-handling processes” at this year’s Intelligent Insurer Claims Innovation USA virtual event on July 14. She will discuss how insurers can elevate customer and claimant experience, and improve employee engagement while unlocking efficiencies and productivity through intelligent automation.

Barnes-Cook will reveal the role artificial intelligence and machine learning can play as well as explore how carriers can improve outcomes without slowing down the claims process. With customer experience at the forefront of everyone’s mind in an increasingly crowded and competitive market, claims is, more than ever, the single most important moment of truth that influences retention.

She spoke to Intelligent Insurer ahead of the event.

Why is now the time to talk about automating the claim process?

There are two angles. On one hand, anyone participating in the claim journey—whether that’s the customer, claimant, agent, broker, or provider—is also a consumer in real life. Their expectations have been defined by what many call “the Amazon experience”: speed, efficiency, choice, and transparency.

Equally, consumers today want to pick how they engage—whether that’s by email or text, web, phone or chatbot. It’s not just what customers want, it’s what they expect. And this is not limited to younger generations—seniors are the fastest adopters of smartphones of any generation.

The other side to this, particularly for property and casualty, is that the insurance industry is under extreme cost pressure. The supply chain is affected at every stage, and everything is getting more expensive—vehicles with embedded technology or housing materials, for example—and medical costs continue to rise year over year. Automating the claim process takes out some of the overall cost to the carrier while providing customers, claimants, and other key stakeholders with the self-service options they expect.

What is meant by making claims ‘digitally native’?

We’re looking at giving the customer an end-to-end automated experience. Carriers tend to think about the claim process in its entirety, but we prefer to think of it as a series of “micro-engagements”.

No customer or claimant experiences the full claim journey all at once, from first notice of loss (FNOL) to payment. Instead, we need to be looking at those interactions where the customer reaches in or the carrier reaches out, for the opportunities to add value through automation, by satisfying customer expectations.

When needing to report a new loss or injury, the customer should have the option for a digital and automated experience. The same thing applies to providing status updates. It’s another opportunity to go digital, be proactive and answer questions before they are asked.

It’s about thinking about every moment across the claim journey, wondering “could this be digital?” and, if the answer is “yes”, asking—what’s stopping you?

In what ways can automation increase accuracy and decrease cost?

A lack of trust is the number one reason that an injured employee will retain an attorney for a worker’s compensation claim. Litigated claims take twice as long to resolve and cost four times more, with the claims adjuster barred from speaking directly with the injured employee. Any disconnect between the injured employee, the insured—in this case the employer—and the insurer can create a break in trust.

If you can leverage automation to reach out to the injured worker immediately and say, “We’ve got you, this is how the claim process works and here’s how we can help you,” trust is fostered, and costs are driven down. Similar proactive automated communication with the customer instils trust that their carrier is taking care of their employee.

When a new auto or homeowner loss is reported, never underestimate the customer value of an immediate, automated, and personalised acknowledgement to confirm receipt of their new claim and explain what happens next and when. Inviting the customer to share photos of their car or building damage along with any available estimates enables the claims adjuster to better understand the full magnitude of the loss immediately.

If it’s a smaller event, dispatching an appraiser may not even be needed before making the claim payment. If an inspection is in order, the adjuster can be more precise in the type of appraisal that is needed. The initial reserves will be more accurate, and the customer and carrier can avoid the duration and cost one or multiple appraisals that could have been avoided.