How technology is revolutionising the home insurance claims management process

08 July 2021 · By Irene Martínez

Technology has become a fundamental tool for insurers over the past decade. The IoT (Internet of Things), AI and smart devices in particular have made claims processing a much simpler affair for insurers and policyholders alike. These once lengthy processes have been optimized through technology, reducing costs while providing a great boost in customer experience as well.

If we hone our focus on the home insurance sector, then it’s clear just how revolutionary digital transformation has been.

A spotlight on home insurance

Home insurance claims may be down as a result of the pandemic, but the sector has still had a high-pressure year — policyholders are spending more time at home than ever before, leaving them frustrated with long waiting times and unresolved claims.

What’s more, with almost 50% of the UK’s home insurance claims being down to escape of water, fire or explosion in 2020… these aren’t small issues that can be pushed aside for other, more urgent claims-based tasks! Those situations require fast action from all parties, with added pressure on insurers to make sure their policyholders can find alternative accommodation while repairs are underway.

Of course, there’s still room for improvement in an industry that has been slow to modernize. Trying to update processes while keeping in line with regulations can be difficult, but the benefits speak for themselves.

The benefits of digital transformation in home insurance claims

Home insurance and innovative technology is a match made in heaven.

Homeowners are switching to smart home devices, from television sets to heating and electricity management. Each device feeds into the IoT, which can provide insurers with real-time data on how their policyholders normally run their homes. Meanwhile, AI assisted apps are making the claiming process fast and foolproof for policyholders.

This, in turn, brings a number of important benefits across the claims management workflow:

Greater efficiency

For policyholders, an efficient claim settlement can mean the difference between a family heading home quickly or half a year spent in “temporary” accommodation. For the insurance agent, settling claims quickly means less time dealing with paperwork and lower costs per claim.

Efficiency is now the key word in insurance and one of the major performance metrics controlling an insurer’s public ranking. Advances in technology have dramatically cut turnaround time from weeks (sometimes months!) to days.

Integrating such technologies as Bdeo’s visual intelligence tools into the claims process makes evidence gathering a fast and simple task. The Visual FNOL uses a Visual Intelligence engine that assists the policyholder in gathering reliable evidence within minutes of an incident occurring. Once the evidence is sent through to the insurer, an agent can then assess the damage, using the VI’s automatic and accurate estimate costs.

This advanced SaaS solution helps household insurers make informed decisions and resolve claims quickly, so policyholders can relax.

Reduced fraud

Fraud is a serious problem throughout the insurance market and can be hard to tackle without technology. Two thirds of policyholders manipulate their information in order to get cheaper premiums, while others may look to more substantial fraud to try and get a better payout.

A damning 9 out of 10 policyholders also believe that insurance providers are looking for reasons to avoid paying out on claims. That perception is key to supporting the rationalization process inherent in why fraud takes place.

Using VI software can give policyholders a much-needed sense of control as they are the ones responsible for evidence gathering. They know exactly what has been documented and gain peace of mind from knowing the data is going straight to the insurer — and through secure means.

Meanwhile, the opportunity for fraud to be committed is also dramatically reduced. The insurer can feel safe in the knowledge that VI won’t lie or inflate the truth — sending only relevant information to support the claim — with no possibility of tampering before submission.

Better communication between home insurers and policyholders

Communication is another key factor for a customer choosing between insurance providers.

If a policyholder needs to make a claim, then radio silence is the last thing they want to receive from their provider. Something as simple as an app-based claim tracking feature could be enough to sway potential customers to your company.

Some consumers also feel as though the personal, empathetic touch has been completely left out of the industry — with claims agents more focused on facts and figures than the wellbeing of their clients. With technology taking over the lengthy, difficult and repetitive tasks, then the era of personal customer service is ready to make a comeback.

An overall better customer experience

Absolutely everything we’ve discussed so far makes for a better customer experience. And, as we know, customer satisfaction is make or break in any business — including insurance.

Giving potential customers the ability to sign up through an app or website, rather than piles of paperwork or a long phone call, gives your company an advantage over others. Customers can work at their own pace without feeling pressured by a salesperson.

Customers that embrace smart home devices can also receive discounts from certain providers, as the risk is dramatically reduced compared to policyholders without smart features. The data can also be used to personalize a customer's policy — giving them exactly what they need without paying for unwanted extras.

Reduced premiums, personalized plans and tailored-made customer service can send your customer happiness through the roof (no pun intended!). The more happy customers you have, the more word of mouth spreads, and the more sign-ups you will get!