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INSURTECH

This is how the claims of the future will be solved

04 July 2022 · By Ana Navarrina

The insurance world has been painfully slow at adopting new technologies. While other industries leaped into the 21st century by overhauling their processes, insurers have been hampered by regulations and a lack of information on how to adapt. But, It doesn’t need to be this way. 

Insurers have access to various technologies that can help them automate and streamline claims processes. And research shows customers want a more modern experience when dealing with their insurers. How can we achieve that? What are we going to see over the next few years?

The traditional claims process

From the very start of the claims process, traditional methods leave a lot to be desired. Traditional methods for first notification of loss (FNOL) can take hours, even days. 

For household claims, policyholders often need to liaise with police, locksmiths, the fire department, and repair services before even thinking about an insurance claim. Even when they contact the insurer, they can be stuck on calls for hours just to file a claim.

Once the policyholder has given FNOL, the insurer needs to verify the information. This triggers another waiting period, as the policyholder needs to wait for an agent to visit them to inspect the damage. 

The human element of these inspections can also lead to a claim being resolved incorrectly. Humans are, at best, inconsistent by nature and can occasionally miss key evidence that could change the result of a claim. 

Once the evidence-gathering process is complete, it’s time to play the waiting game: no regular updates, no check-ins, just a long, long wait.  

This type of experience is one of the key reasons policyholders have so little trust in their insurers. Unfortunately, this is the experience policyholders have had to put up with for countless years. Customers are desperate for change, and insurers who fail to address their customer’s concerns will struggle in the next few years as they find other companies that offer a better, modern service. 

The claims of the future

Artificial intelligence and visual intelligence will completely transform how we process claims and interact with our policyholders. Those who embrace these new technologies will be able to offer a far more streamlined process while still offering the personal touch that customers crave. 

Chatbots used to be little more than gimmicky, unintuitive, and unhelpful pop-ups that drove consumers crazy with generalized advice. These days a chatbot can do nearly everything a human agent can do and, thanks to AI platforms like Bdeo, still provide that personal touch consumers want. Chatbots can also speed up the FNOL process, giving policyholders 24/7 access to trigger a claim as soon as an incident occurs. 

Visual intelligence can be built into an insurer’s mobile application, offering claimants a simple way to gather evidence. The app can guide them through the evidence-gathering process within minutes, so claim handlers will have the most accurate data possible. This will speed up the claims process, and in some cases, the app can use VI and AI to resolve a claim within minutes. 

Next comes the long, mentally draining wait for the claim resolution. Thankfully, new technology offers a way of easing stress. Claimants can receive regular, automated updates that keep them informed throughout the claims process. This is extremely helpful for cases that take a little longer than usual, by passing along progress updates. Even if a claim takes longer than normal, policyholders will have increased insight into the process. 

With AI and VI, the entire claims process can be streamlined, including faster settlements. Insurers and policyholders alike are looking for a simple process when filing claims. 

The “time-to-settle” metric is what policyholders care about the most, and the majority of honest claimants just want the process completed with as little time and effort as possible. Using AI in the claim process can do just that.

Finally, these new technologies can help eliminate the biggest issue in the insurance sector: fraud.

Fraud is one of the main causes of distrust between insurers and policyholders. Insurers have been forced to build many of their processes around fighting fraud, which unfortunately gives the impression that they’re simply looking for a way to deny claims. 

Using AI and VI during the claims process can help repair that trust by using solid data to guide fraud reduction efforts. AI can provide real-time risk analysis and view historical data within the correct context for the individual claim. This offers accurate results in a much shorter time frame. 

AI can also be paired with machine learning to help improve the way the AI works. The more claims that go through the system, the more data that AI has to learn from. This means the longer you use AI, the better it gets at flagging signs of fraud. 

Surprise — the future is here!

The “claims of the future” are actually the claims of today. While many of the big players in the industry are still cautious about embracing technology and the modern way of claims processing, smaller insurers are bringing some revolutionary tech to the market.

Those who choose to update their processes see customers flock to them in droves. With help from Bdeo, you too can offer the benefits of modernization to your customers and employees. 

Ditch the lengthy, tedious tasks and empower your customers with Bdeo. Contact us today to see how we do it.

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