ARTIFICIAL INTELLIGENCE & TECHNOLOGY
Claims management and torrential rains: the role of technology
05 September 2023 · By Ana Navarrina
It is becoming increasingly common for extreme weather events such as heavy rainfall to occur, which impacts how insurance companies operate during these high-demand moments.
These atmospheric phenomena are causing changes in the procedures and protocols for handling insurance claims. In fact, several companies point to the impact of meteorological events as one of the major future challenges in the insurance sector. How do we address this? Keep reading.
High Concentration of Claims: The Primary Challenge for Insurance Companies
In the face of claims caused by weather events, insurance companies have to deal with several challenges. One of them is the high concentration of claims occurring simultaneously in specific geographic areas, making coordinated resource and personnel management difficult. Furthermore, a specific protocol needs to be applied in such cases, which is not a part of the insurers' daily operations, further complicating the claims processing.
Companies are making significant efforts to update these protocols in order to improve their ability to manage these phenomena. However, technology seems to be a key factor in achieving this optimization, thus avoiding potential limitations in additional resources allocated by the companies.
This is not the only challenge for the sector. Another one is drought, which results in reduced claims related to water damage, causing inactivity in the claims management process. In the words of our Senior Advisor Jose María Castelo, "This means that the structures of insurance companies shrink due to lack of activity. The sector will have to learn how to manage peaks and valleys of work. Valleys, with historically less activity, and peaks, with significantly higher activity." Insurers rely on the same professionals, which hinders their ability to guarantee the available resources. It is crucial for companies to embrace technology because optimizing protocols based on human resource management improvements will continue to limit them.
The Policyholder: Key in the Claims Management Process
The role of the policyholder in the claims management process is crucial. Insurance companies must address the anxiety that the insured person experiences in their situation and the possibility that they might compare their situation with that of their neighbor, who is in a similar situation.
To achieve this, companies must focus on the basics. First, ensuring that the customer can report their claim more quickly, with the mobile phone camera being essential for this purpose. Secondly, having insured individuals communicate whether the claim is urgent or not. Thirdly, providing the insured person with information about the next steps, setting realistic expectations. Finally, distinguishing between claims using objective criteria. In this regard, technology plays a crucial role in identifying urgent cases.
Moreover, technology helps direct the claim based on its severity within the company, making customer service faster.
Therefore, technological solutions contribute value by enabling process automation, ensuring a prompt response to the insured person with immediate action. Our Head of Sales Iberia & Italy, Pablo Martínez, states that "technology allows for triage that will improve the customer experience, but also the company's protocols." The use of technology optimizes internal processes of companies, such as estimating reserves or categorizing the claim in relation to the Consortium. Thus, technology is changing the way claims are managed, as well as the insurance company's operations, process optimization, and the insured individual's experience.
If you want to learn more about how we help insurance companies in over 50 countries optimize their processes and better manage demand spikes, do not hesitate to request a meeting with our team. Thank you for reading!
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