The insurance industry is witnessing many changes due to modern technological trends, such as the Internet of Things, big data and analytics, blockchain, which are dynamically and irreversibly changing their functioning. Let’s take a look at the major trends affecting the industry and discuss the various issues that drive InsurTech’s current priorities, and see if we can name the most important ones.
Every industry has its leaders and its laggards, and the insurance industry is no exception. Deep pockets help policyholders take advantage of digital technology to change their functioning and:
- Offer new models and personalized products to meet the changing expectations of customers, which are driven by online retail models,
- Partner with technology players to ensure they keep up with new technology trends, and to take advantage of the Internet of Things to take advantage of connected sensors or data collection devices to prevent losses and use the best pricing techniques in property and victims as well in life as health insurance.
- Create a cybersecurity strategy to protect sensitive personal and business data stored by them, and to respect privacy policies.
- Adopting cloud computing, artificial intelligence and automation to improve speed and flexibility, and for faster settlement of requirements to ensure better customer satisfaction,
- Use advanced analytics to generate strategic ideas and actively plan future business offerings and gain competitive advantage.
- Consider using blockchain technology to add “smart” contracts and secure, decentralized data collection, processing, and dissemination in their processes.
Are these strategic initiatives enough for the host companies to enjoy industry and market leadership and, ultimately, success? What opportunities do insurers need to prepare to meet the needs of the industry, in expanding channels or developing a business model as it develops? How can insurers prepare for tomorrow’s demands, even if they meet today’s expectations of them? The purpose of this report is to suggest that many policyholders do not recognize the importance of claims management for their business, although they focus on the many other strategic imperatives they face. Let’s explain why we would say so.
It’s an open secret that customers are always happy with a good claims settlement experience, but tend to be very upset and start posting strong negative reviews online when their claim is delayed, challenged or rejected. While meeting requirements is an extremely important component of an insurer’s overall customer relationship management task, currently for most it is just unfinished business. Instead, they need to pay attention to customers as well as focus inside, as they delve deeply into customer dissatisfaction:
- Insurers should closely monitor customer feedback and the level of satisfaction with the application process and settlement experience, especially if they are rejected.
- Insurers should consider customer feedback and consider it in how their processes work, as well as question the clarity of the very height of sales and verify that the claim has been fairly rejected.
- They need to closely monitor their reputation in this key area of customer satisfaction, which can affect their ability to retain a customer.
- It should be remembered that dissatisfied customers never return for additional coverage or other policies.
- Even agents who believe that too many customers are raising their voices against the insurer’s claims settlement process tend to distance the business from them.
- The smoothness of customer work should also extend to claims handling, as filing claims becomes a smooth process.
- Insurers can use the technology to provide more opportunities to file a lawsuit, including uploading photos and videos, with increased speed and accuracy and reduced contact with people.
- Because algorithms more easily detect fraudulent claims, the efficiency of claim processing is improved. Data-based claim prevention can help reduce costs and increase cost by predicting real risk and reducing contributions.
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By managing a delicate balancing act between detecting fraudulent claims and paying legitimate ones, insurers can create a negative relationship with the customer by being too strict or overly suspicious. But that doesn’t mean they can be gullible and continue to approve all demands gently. Any injustice, real or perceived, can determine whether the policy will be updated again, whether our online reputation will suffer, or whether the insurer may face legal dispute. Even if insurers work hard to identify the technologies needed to expand their distribution channels and provide an optimized customer path; they cannot overlook the importance of excluding fraudulent claims from their list of priorities. This is why we believe that claims management can challenge InsurTech’s priorities for the insurance industry. What do you think? Please write and share your thoughts.