Digital Disruption in Claims Management

It requires insurance firms to develop new business models that enable the use of large volumes of (rich) data in a smart and efficient manner. This is easier said than done as many traditional firms face ‘digital culture shock’. However, they may have no other choice than to look past traditional business models and work towards automation, real-time processes and, in general, the digitalization of insurance business in order to compete. It means more than just using new digital tools and skills, instead a culture should be fostered where people possess core competencies that enable them to adapt, learn, innovate and eventually shape ’the rules of the game’ by disrupting the status quo. This means that firms, in principle, need to be built for change, be data-driven, and embrace disruption.

On a more specific level, digital advancements in claims management can be a critical source of competitive advantage. Customers who have a claim, evaluate the firm on this crucial moment. Faulty claim handling can have serious consequences for the firm’s reputation and performance. That is why big data and new technologies can be useful to make the process better and more efficient. For instance, it is possible to identify the right treatment for a particular claim and make intelligent decisions during the early stages of the claims process. This can reduce costs and shorten claims processing times significantly. It can also be used for more information-intensive customer interactions. A claim can have substantial impact on a customer’s life. It is expected from insurance firms to deal with their claim in the best manner possible. This means, amongst other things, making the right decisions, being transparent and keeping close contact with the customer throughout the process. In summary, the next generation of technologies make it possible to provide next level of operational excellence and improved customer experience.

Schade24, who specializes in injury claims, is working on the digitalization of such claim handling and customer engagement processes. A platform is under construction that will provide customers the access to monitor the claims process and enter into a dialogue whenever preferred. This platform provides exchange of communication and documents on a continuous basis. This should reduce the amount of traditional communication methods such as calling, e-mailing, and face-to-face meetings to some extent. Furthermore, a streamlined process in which data flows fast and easily throughout the chain is strived for. From determining the liability, the amount of damage, and the financial coverage to recovering damages and even detecting fraud are all processes that can be done without the intervention of claim handlers to some extent. The automation of such systems result in a straightforward, fast, and accurate process with higher customer experience in terms of quality. It also results in lower costs, a competitive edge, and fewer people needed to perform tasks. As a start-up, we have the advantage of building from scratch. Therefore, we are striving to implement the next generation of technologies and data from the beginning in order to serve customers better than ever before.

Geschreven: 4 juli 2017