The insurance sector has embraced technology in all vistas of its operations including insurance claims to ensure better customer services and stand out in the competitive market. There has been a steep spike in the settlements and in the number of policyholders in recent past due to various risk factors like natural calamities, man-made conflicts and more. From drones for inspecting the roof of houses to bots used in insurance claims processing and artificial intelligence to enhance customer experience, a lot of technological innovations has been sweeping the insurance sector. Here are the top 9 insurance claims processing trends to watch out for.
Top 9 Insurance Claims Processing Trends
1) The Insurance Industry and the Evolution of Automobiles
There are a few key emerging insurance industry trends driving major changes in automobile insurance, which is the top consumer product for most retail insurance companies. Ridesharing (fewer people owning cars), semi-autonomous cars in the short term/autonomous cars in the long term, are transforming the whole landscape for the insurance industry, eroding premiums and in some cases reducing the size of the market. Businesses such as Lyft and Uber could have a big and lasting impact on the insurance industry because of the emerging requirements for ride-sharing insurance. The whole process of standardizing insurance for autonomous cars, however, is certainly going to take some time. Vehicles would need at the least a way of detecting whether the fault lies with the driver or with the systems itself.
2) Machine Learning and Automation
Insurance companies are striving to attain higher efficiency through machine learning and automation in all fields’ right from distributing policies efficiently to optimizing operational costs and offering premium quality multi-channel customer service at attractive rates. Insurers will be exploring the possibility of machine learning and automation more in the days ahead. The development in Artificial intelligence has made it possible for insurers to automate complex processes such as property assessment, receiving customer insights, personalized customer interactions, fraud detection, and claims verification and processing.
3) Cyber Security
Another major emerging insurance claims processing trends in the insurance industry is cybersecurity that will safeguard the interests of both the clients and the company at the same time. Insurance agencies are at more risk of being the targets of hackers as it holds enormous amounts of sensitive personal information such as personal properties, health, etc. Cyber security will make sure that the personal information and confidential details of their clients are not breached. The emergence of Telematics has ensured better security against fraud and in better handling of claims.
4) Insurance Distribution Channels
Insurance companies are utilizing multiple parallel channels to distribute insurance products to cut through the marketing haze and ensure faster processing. By outsourcing insurance services and the task of insurance policies, the load on the in-house team can be reduced all the while enhancing the quality and pace of services.
5) Blockchain – Secured transactions made easier
Blockchain technology has eliminated fraudulent claims and errors, which was not possible earlier. The strategic alliance between insurance partners is all set to revolutionize the insurance industry in the next couple of years. Blockchain will go a long way in plugging huge losses because of false claims and scams that happen in the industry. This technology will hasten the process of claims processing by eliminating the need for manual effort in verifying the multiple data points before processing a claim. Block chain can quickly process the claims and insurers can track the usage of an asset by using the data available in the blockchain without tampering any information.
6) Personalization of Insurance Premiums
Another emerging insurance claims processing trends is the higher personalization levels in premiums, which will offer something special for every insurance customer in the days ahead. Premiums tailored to match the individual coverage needs of the customers will make a path-breaking the trend in the insurance sector.
7) Automated, Self-service and Quick pay facilities
Insurance companies can ensure better customer experience in claims settlement through automated self-service and quick pay facilities as against the slow manual process that requires a lot of information from the customers and the tedious process of filling the forms manually. In the self-service approach, the customer provides video and images at First Notice of Loss (FNOL) and is in control of the claims process. It will reduce the time and enhance the customer experience as never before.
8) The All-in-One Insurance Policy
Another emerging trend is the comprehensive All-In-One form of insurance that provides great convenience for the customers of opting for a policy that covers everything. When insurers have all details about their customers and their possessions and travel habits they can suggest a single overarching policy that meets all their coverage needs.
9) Automation to replace human effort
Greater automation will replace most manual tasks in the insurance sector Customers find the digital experience easier as it is simple, effective and flexible. Best of all, it can be done at their convenient hours, unlike a manual system that involves fixed hours of operation.
The insurance industry is well poised to have a technological makeover in order to stay on top. Did you find this top 9 insurance claims processing trends informative? Feel free to share the post over your favorite platforms and spread the word.