Implementing a Bridge Between Next-Gen Insurance Claims and Exceptional Customer Service

The digital era has enabled an accelerated shift in consumer expectations for speed, ease, convenience, and personalization of interactions across all industries. Delightful Customer experience (CX) is no longer just a buzzword; it’s a vital element of every business strategy. In order to stay competitive in today's marketplace, companies must provide exceptional digital customer service through technology solutions that empower employees and help customers save time and money by simplifying the interacting processes. In fact, as per the recent Forbes survey, 58% of customers are willing to pay more for better customer service.

In the insurance sector, customer service takes on multiple roles and features at various touchpoints, whether it is assisting a customer in identifying the right policy suitable for them or aiding them during the policy renewal process. However, everything boils down to the claims-related experience as it is one of the primary factors influencing the CX.

After all, if the company fails to offer the level of support or service that they have been promising or advertising previously, it effectively nullifies the entire CX leading up to this point! As such, it is mission-critical for insurance companies to tie insurance claims activities with robust and responsive customer service so that the CX stays unaffected, or better yet, improves.

In this blog post, we will discuss some of the industry’s biggest challenges and how we are using technology to bridge that gap between next-gen insurance claims management and exceptional customer service.

Bridging the next-gen claims process and customer service is important for several reasons. For starters, customer satisfaction (NPS) goes up and retention rates ramp up when people have a positive experience with their insurance company. Those who are unsatisfied will likely switch to another provider in search of something better—or simply not renew at all. That means more money going out of pocket for customers who may otherwise be satisfied with their current policy(s). In fact, as per a recent PWC survey, 41% of surveyed customers said they are likely or more likely to switch providers due to a lack of digital capabilities in CX areas. 

Improved customer retention leads directly to increased profitability: As we discussed above, delighted customers mean higher premiums paid by companies like yours (and thus lower costs). Plus, the focus can be shifted to acquiring new customers and improving the market share even more. This can translate into greater profits over time because fewer policies need renewal fees or churning fees applied against them later on!

To reiterate, the CX hinges strongly on claims-related experience.

As the insurance industry changes and digitally savvy customers’ expectations continue to rise, it is important for businesses to understand how they can improve their customer experience and make it more differentiating.

The main challenge that many insurers face is that a large portion of customers wants to interact with their insurance company digitally faster and in a more convenient way. These customers want easy access to information and services, but they also want real-time interactions with representatives when making claims or filing an incident report.

The problem that is often overlooked by many insurers is that they are not equipped to deal with this new demand. They do not have the technology or infrastructure in place to support customers who want to interact with their agents digitally. This means that many insurance companies are losing business and revenue because they cannot meet the needs of their clients. Even the ones who do manage to digitize their interactions fall short as they are unable to provide the level of omnipresence that is expected from them.

In some cases, the ‘channel of preference’ matters a lot when a customer prefers specific channels to interact with the insurer. It can be calls, social media, agent-driven web chat, automated web chat, emails, or texts. In those cases, the insurers need to have a channel deflection strategy in case the volume of inquiries go beyond a certain level in some channels.

The solution to this problem is simple. Insurance businesses need to upgrade their systems and claims management software to provide customers with the level of service they expect. It all boils down to how fast the claim can be lodged and processed, how simple the claims are managed end-to-end and how transparent the processing itself is. This calls for implementing new-age technology that allows agents to work remotely while still being able to interact with customers face-to-face if necessary throughout the claims process. Having a centralized yet omnipresent solution to manage communications can prove to be useful in meeting your customers where they are - online, offline, desktop, mobile, you name it.

Here’s a look at how insurance companies can elevate the claims experience through technological intervention.

Insurance companies usually have huge piles of customer data. Analytics can be leveraged to make intelligent decisions based on those data in real-time. In the past, analytics were used primarily to measure and improve operational efficiency, but now they are being applied in more strategic ways that benefit customers as well.

For example, an insurance company could use analytics to identify customers who have recently been involved in an incident and determine which ones would be most likely to return for another claim in the future. This information can then be used by customer service agents who are responsible for addressing customer queries related to these claims—for instance:

Agents will know who's likely to need additional assistance because they have previously submitted claims (e.g., high-risk drivers with multiple accidents) before calling back again later;

Customer service agents or representatives may use this information when communicating with potential clients about options available through their policy(s).

The agents can also use speech analytics to understand the tonality of the customers on call. The analytics engine can also recommend the next best action to the agents which can help them have a better conversation with the customer.

Such data inputs allow customer service agents and representatives to embed value at every exchange and make the claims process frictionless.

Connected claims are a way to interact with your customers in a way that's more personal, meaningful, and convenient. They can be used to provide a more customer-oriented service, as well as to give you a better understanding of your customer's needs so that you can fulfill them. This requires the data gathered from the customers integrated with efficient IT processes and analytic solutions to act as the driving force behind the strategy-based changes.  

For example, if you're offering auto insurance, a connected claim could allow you to use data from sensors to provide information about what caused the loss, immediately search for the nearest garage that can fix the issue, reach out to the customer alert them of the same and sharing information that will help them get the issue sorted quickly. Overall, insurers can use advanced analytics, repair updates, and offer claims-related support using a Connected Claims system. Thus, it could also help you understand which policies are best for your customers' needs.

You might also have connected claims for any time a customer uses your product or service. This can help you figure out what features are most popular among your customers, which can help make future products more effective.

Addressing a pressing market gap or satisfying a customer-led demand can position your insurance company favorably amongst your target audience.

Customer satisfaction is improved when claims are settled faster. This is because customers will have less time to be inconvenienced by the process and gain resolutions faster.

For example, businesses can use insurance claims management software that allows them to track the progress of each claim at each stage from beginning to end. This way, they can identify issues early on and address them before a claim gets too far along in the process and becomes more difficult or time-consuming to resolve. At the same time, customers can also leverage this feature to visualize the movement of their claims and not have to follow up persistently with the insurance company. As such, it eliminates several pain points for businesses and customers and elevates their respective experiences.

The insurers can also leverage hyperautomation technologies for Straight Through Processing (STP) of claims to keep up with the dynamic demands of modern-day consumers.  In this case, the insurer automatically processes claims transactions without manual intervention or input. The system ingests data digitally and processes the claims seamlessly based on decisions governed by algorithms, including predictive models and simple business rules which are controlled by the insurers. STP enables speed, consistency, and productivity while making the customer experience quicker and more convenient.

Additionally, reducing the time taken for resolving claims also helps increase revenue through word-of-mouth marketing that will bring in new customers who were not satisfied with their previous experience with a competing insurer.

As you can see, the claims experience is an important part of the customer journey that deserves careful attention. Exceptional customer service can help you retain existing customers, build trust between your employees and customers, and propel your business to new heights. The way a company handles claims is crucial for generating positive reviews and testimonials about its products or services—and thus increasing its value as an insurer over time.