Is automated claims processing worth the investment? As with every digital business tool, it’s wise to evaluate the benefits before making a decision. Here are ten reasons insurers should consider switching to automated claims processing.
Ten Benefits of Automated Claims Processing
Happier Customers: Automated claims processing improves customer satisfaction by empowering customers to help them feel more involved in a process that has traditionally been obscure and out of their control. A streamlined customer experience, from the claims FNOL process to final payout, lets the customer know where their claim is in the system, what documents they need to submit, and what to expect from the rest of the process. Tools like eForms and document collection software reduce or eliminate the need for customer trips to your office. Real-time information at their fingertips keeps them informed and makes the process transparent. Customers value communication and convenience; offering both through automated claims processing will help meet customer expectations and reduce customer churn.
Fewer Errors: Automated claims processing enhanced with digital document collection streamlines business processes and reduces the need for manual data entry. Instead of entering the same data into multiple systems, customers or agents will enter critical information once. Then, automated claim-processing workflows will transfer the data seamlessly from one form to another. This eliminates the element of human error that complicates the claims process, lengthens the handling time, and frustrates clients.
Improved Workflow: Processing insurance claims is complicated. There are multiple touchpoints for multiple people. A digitally automated workflow streamlines the process, makes it less confusing, and automatically tasks the appropriate party with their responsibility when it’s time for them to complete it. This is especially helpful for individuals who don’t frequently interface with the insurance industry, or for those who are notorious for having a backlog of unaddressed paperwork on their desks. Plus, with cloud-based technology to securely store client documents, everyone has access to all the necessary information to do their job quickly, effectively, and accurately. It eliminates the paperwork shuffle!
Faster Claims Processing: Nobody likes slow processing times, least of all your customers and agents. Slow claims processing means unhappy customers, and unhappy customers may find another insurance company. When you streamline and automate your claims processing system, claims move through the process faster. Your customers will be happier, your agents will be happier, and your claims adjusters will be happier.
Consistency in Service Delivery: Insurers have a national or regional brand but rely on individual branches and agents to serve customers. Even with a well-designed onboarding program, this can result in significant variations in customer service. Automated claims processing gives large-scale insurers the ability to offer consistency in their claims processing and the tools they offer to their customers. This helps maintain the insurer’s brand identity and ensure the customer experience is consistent no matter where they’re served.
More Accurate Risk Analysis: Automated claims processing produces a wealth of data that insurers can analyze to assess risk. This results in the ability to make data-driven decisions which means improved product offerings, better pricing models, and more accurate payouts. All of this has a positive effect on the company’s financial footing. It also helps companies stay up-to-date with trends and make quick, data-informed decisions using current information rather than waiting for outdated reports.
Fewer Administrative Duties: Agents can spend more time serving existing customers and growing their business when they don’t have to spend their days entering data, chasing down signatures, and taking phone calls from customers wondering about their claim status. Generating new customers is critical to a successful insurance business model; automated claims processing eliminates tedious and time-consuming tasks to free up agents to do revenue-generating work that will boost the bottom line!
Happier Staff: Information is power, and no agent wants to feel lost, confused, or ill-informed when they’re supposed to have all the details to serve their customers. Automated claims processing not only frees them from menial tasks and a time-consuming manual process, but they have more information at the ready when they’re working with clients. Happy agents do better in business, and staff who leave are costly to replace. Agent-friendly tools that streamline the process, keep them updated on claim status and help them easily identify where a claim is held up all contribute to a better work environment and happier staff.
Reduced Fraud: Fraud costs insurers $80 billion annually in the United States and occurs in 10% of property-casualty claims. Automated claims processing helps detect fraudulent claims with AI tools and other safeguards to detect suspicious patterns, questionable claims, or other fraud indicators. Digitizing and streamlining the process provides rich data across millions of customers to analyze and identify the hallmarks of fraudulent claims, which makes spotting future deceitful claims easier. Digital tools such as ID Verification and esignature solutions also help reduce fraud by protecting insurers from writing policies or opening claims based on identity theft.
Cost Savings: Aside from cost savings resulting from decreased fraud, automated claims processing can help save money in other ways, too. Reduced manual data entry reduces staffing needs and labor costs, and an automated workflow means agents (and their teams) spend less of their time chasing down and managing the paper trail. And finally, fewer errors mean fewer mistakes to correct – which can be costly in both erroneous payouts and the staff time required to fix them.
Automated Claims Processing Benefits Everyone
Few tools are a “win” at every level, but automated claims processing benefits everyone. Customers are empowered with self-service options and up-to-date information, agents spend less time on menial and tedious tasks and can focus more energy on revenue-generating activities, insurers save money, offer consistency across agencies and branches, and reduce average handling time for claims. If you’re considering an automated claims processing system, the answer is clear. It’s time to make the switch!
Lightico offers tools that facilitate more efficient claims processing. E-signatures, digital document collection, and automated no-code workflows are just the beginning. See how the experts in digital document completion can help you take claims processing to the next level!