How to streamline the Insurance Claims Lifecycle
Claim your time back! A shorter Claim Lifecycle is one of the most important strategies to optimize your performance.
When it comes to insurance, consumers have had enough. They’re no longer satisfied with long and complex resolutions. Now, we need to deliver a committed service based on speed, security and efficiency.
Technology allows us to obtain these results by venturing into the digital world. However, the use of technology without a strategy, is not a long-term solution to the problem
According to PWC Insurance Global, leaders in the area are developing more personal and longer-lasting relationships through digital capabilities that provide enhanced knowledge of their customers. In their recent study, “Insurance 2020: The digital prize” they observed that the industry is undergoing a fundamental transformation.
“Digital innovation has been the catalyst for this customer revolution, but it can also offer the opportunity to develop the sharper customer engagement, insight and experience needed to meet these more exacting demands.”
According to their study, just 15% of customers are satisfied with their insurer’s digital experience offering. The conclusion? Today’s connected customer wants more and they want it faster.
It is time to accelerate your Insurance Claim process!
All insurance carriers, third-party administrators and other Claim Management Organizations need to automate the workflows surrounding a case. With a tracks progress, we can identify and escalate claim-related issues.
Greater efficiency while streamlining and automating the lifecycle of an insurance claim can be optimized with workflow automation. The benefits are profound:
- Reduce overall claim operations costs associated with manual processing.
- Improve processing cycle times and improve customer satisfaction goals.
- Enable secure online sharing of claims and policy documents.
- Streamline processes across the claim handling lifecycle.
- Increase operational efficiency by integrating customer information systems.
- Reduce paper processing-based risk
As can you see, the advantages of a shortened Insurance Claim Lifecycle involves many steps that can easily adapt to your company’s process.
According to Claims Journal, longer claim settlement cycles result in higher costs and have a negative impact on profitability. “There are some visible advantages of shortening the life cycle of insurance claims and keeping processing costs under control, and this includes freedom for insurance businesses to price their premiums competitively without forgoing profitability”.
In the article “Cycle Time Is King”, they defined that any service process can be measured based on its performance within these three areas:
1. Cycle time – time to complete one cycle of an operation (e.g., from opening to closing of a claim)
2. Cost – the cost to go through one cycle of the process
3. Quality – the error rate that occurs as you go through a cycle
Negative claim experience scores are highest for those Claims which take more than 20 days to resolve – Accenture says. Shortening the claim life cycle can considerably improve and strengthen customer loyalty. Modern players know this and are quickly eating up the market share with innovative business models to achieve rapid results.
The Traditional VS Technological Insurance Claims Process
Let’s start with a quick look at today’s traditional insurance claim process and find out how to optimize the strategy and obtain faster results.
For your customers, this is often a stressful and personal situation. That is why you need to make the process as simple and stress-free as possible for them. When your claim process is streamlined and efficient it offers a great customer experience. It’s a win-win situation for all parties involved!
Technology can help you achieve this goal.
For example, after an accident, claimants need to record the location, the situation, the co-workers involved, etc.
They need to note the time and date, the conditions, the damage done, any injuries sustained and the names of any witnesses.
Traditionally, an insurance claim like this requires a lot of note-taking and photographs, but this is where technology can make a huge difference. Automating and streamlining simple tasks can turn a stressful and confusing situation into an easy-to-follow and intuitive guide.
From the beginning to the end, a streamlined insurance process reduces the turnaround time required and gives the claimant peace of mind throughout.
The road to successful time management
Now that we know what our clients want, let’s see how to give them the experience they are looking for.
Customer success depends on providing a fast, satisfactory and efficient service, streamlining time, processes and ensuring optimal results.
With this objective, it is essential to have an aligned strategy that allows optimizations to obtain results.
By embracing tech, insurance providers can streamline their claim processes and enhance customer experience. This turns tech-savvy consumers into long-term loyal customers.
How to reduce the Claim Life-cycle?
So, the big question: How to reduce the time spent on claim life cycles?
To most effectively reduce time spent processing, you will need a way to quickly analyzethe data.
When a client makes a claim it is vital that they feel their needs are taken care of. They do not want to spend time looking for upgrades on their claim. Nor do they want to chase an adjuster in an attempt to gain comprehensive knowledge of what’s happening.
To optimize the life cycle of your insurance claim, there are three simple steps you should be taking into account.
1. Gathering and analyzing data. One of the biggest challenges in the insurance claims process is information gathering.
In this stage, Claim Benchmarking is going to be your biggest ally. Compare yourself with your competition and find out what you can do better. If you are charging too much or too little, if you’re taking too much time to respond, if claims spend too much time on the “processing table”. Run a benchmark, get a report and take action.
2. Use Customer Communications Management Software that helps you generate reports and facilitates a seamless experience for your customers. It increases the efficiency of the claim process and can also aid in providing recommendations, preventing fraud, and reducing lost claim costs.
3. Implement automated workflows which radically improve on the manual check and review of Big Data. Artificial Intelligence drives analysis, saves time and reduces time spent on each individual claim.
Is there an integrated solution?
Of course! The shortest answer to reduce time spent managing claims and specifically the life cycle, is Terraclaim (terraclaim.com). A powerful tool that allows you to swiftly process insurance claims. A quicker, more complete and all-in-all smarter answer for your adjusters and TPA’s. Not only does Claim Management reduce time in processing your data but it also has an enormous database to benchmark against.
Get your time back with TerraClaim
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