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Discover Next Generation Digital Journeys in Insurance Claims

In the insurance industry, a significant shift is occurring—one that is transforming the way insurers interact with their customers. The focal point of this transformation is the digital journey, and it’s revolutionizing the entire claims process. For the first time in decades, insurers are orchestrating a symphony that resonates with their policyholders, a melody they can hum along to with ease.

This paradigm shift within the insurance sector is powered by a relentless pursuit of innovation and customer-centricity. Insurance companies are embracing digital transformation strategies that are not merely cosmetic enhancements but holistic overhauls, redefining both the frontend digital journeys and the backend operational processes. Their ultimate goal? To provide customers with streamlined, efficient, and user-friendly claims services.

In the past, insurance claims often invoked images of lengthy paperwork, frustrating phone calls, and extended waiting periods. However, today’s insurance landscape is markedly different. Thanks to digital journeys, the claims process has become simpler, faster, and more transparent. Policyholders now find themselves at the center of an intricate web of technological marvels, seamlessly navigating the insurance claims process from start to finish.

This blog delves into the transformative power of digital journeys in the insurance sector, exploring how they are reshaping the way insurers serve their customers and laying the foundation for a new era of insurance claims handling.

Here’s how insurers can unleash truly transformative digital journeys.

1. Prevention First

Advanced sensors on products such as vehicles can identify high risk scenarios beforehand. Customers can be advised of safest routes, best safety practices on their mobile. Responsible customers can be awarded with lower premiums than higher risks ones.

For instance, auto insurers have already started usage based insurance (UBI). They can monitor driver behavior through telematics on the vehicle or smartphone. The behavioral information transmitted to the insurer can help the company assess the risks of driver having an accident and charge premiums accordingly.

2. Instant damage/loss assessment through seamless integration

Traditional damage assessment involves asking the customer approximately 40 harrowing questions in their time of need during FNOL (First Notice of Loss), thus driving customer disappointment higher. Now, advanced sensors in cars and IoT connected products, properties can estimate the damage in real time. Integration with third party providers can allow insurers to do real time damage evaluation through images or description with AI, OCR and image analysis capabilities.

3. Evolution of claims manager

Innovative digital journeys can help claims manager go beyond traditional claim management. They will evolve from being a ‘firefighter’ to an ‘integrator’ who efficiently marries technology with a empathy driven human touch. Digital journey designers in insurance will equip claim managers to be equipped to deal with ‘consumerization of a claim experience’ and dynamic ways of addressing claims.

Digital journey designers in insurance transforming claim journeys
4. Simplifing process with advanced telematics driven by AI

Telematics is not usually associated with insurance. But technology advancements and innovative ways of application are pushing the boundaries of insure tech. Telematics in IoT (Internet of Things) products are empowering in-depth engagement between insurers and customers.

New York Central Mutual Fire Insurance Company (NYCM) uses an user based insurance program that leverages telematics. Users and their dependents get real time alerts about their driving usage including over acceleration, hard brakes or pre defined driving routes. Participants get a 10% discount on their premiums and consistent good driving behavior can get as much as 30% renewal discounts.

5. Automated settlement

Automated verification of FNOL (First Notification of Loss), damage and repair estimates can lead to automatic reimbursements as soon as the invoices are verified through digital signatures. An analytics driven approach can automate claims handling for clear and simple cases.

A leading digital insurer in North America has implemented an innovative, chatbot-based FNOL system that creates automated claims payouts within seconds by integrating and actively working with third party repair vendors.

Improving claim accuracy and settlement time can deliver reduction in loss costs with reduced processing times. Next generational digital journeys can thus deliver greater satisfaction with lower incidence of claim disputes and litigation.