Claims management is the heartbeat of any insurance company. An effective claims management saves the insurer time and money, so you can improve customer satisfaction and retention. An efficient claims handling process enable you as an insurer to minimize the use of resources in achieving your objectives. *Effectiveness is ‘the extent to which the stated objectives are met.
When a claim is submitted by an insured, it is a demand made for the payment of benefits under a policy. This is a defining moment in the customer relationship for you; delivering the best customer’s experience at the moment of loss.
Whenever there a loss happens is when the minds of the insured awaken towards their insurer, many consumers pay little attention to their insurance coverage until that moment of loss.
In the past, claims management involves massive manual tasks and working on huge piles of paperwork, but with tools and technology such as claims management software, insurance companies have reduced the interaction of humans – streamlining and automating the process.
When insurance companies engage the right processes and implement the right technology, they can manage high volumes of claims, with a better ROI – profitability.
Effectiveness, Efficiency and Promptness of Claims Management
To reduce the cost associated with managing claims and deliver value to your customers, focus should be on enhancing efficiency and effectiveness in the claims process.
Claims processing is the avenue to drive improvement in the customers’ journey – acquisition, retention.
Claims effectiveness: the cost of quality
What creates quality in claims management is a combination of consistency and good market conduct – product, customer and processes.
The speed, accuracy and effectiveness of claims processing are important for controlling costs, managing risks and meeting underwriting expectations.
Loss Economic Opportunity (LEO) is defined as the savings potential associated with achieving quality in claims management, due to:
- Consistency in claims processing
- Good market conduct
- Consistency in applying company procedures
What does this mean for you as an insurer? This will depend on the specific line of business but in all cases, the savings potential can be quite tremendous; the savings can range from 20 – 70%.
Improving your claims process
For insurance companies to grow and achieve their goals, evaluating and improving your claims management process should be a priority.
Benefits of an improved claims management process
Improve Customer Experience and Retention
It is no news that Insurance is a highly competitive industry. Having quality customer satisfaction is an advantage that lets you stay ahead of the competition, using technology to streamline your claims management. Consumers are getting used to seamless customer experience, and customer expectations are at an all-time high. Policyholders expect hassle-free interactions with their provider, fast settlement of claims and transparency of policy information.
When insurance companies use technology to improve the efficiency of their claims processing, they make it easy for customers to submit claims and receive settlements, improving their overall satisfaction.
Early Fraudulent Claims Detection
Insurance fraud involves obtaining financial gain from an insurer or insured using misrepresentation of facts or false pretences.
Unfortunate but a fact; every insurance company will receive fraudulent claims. Having an effective claims management process should help detect these claims early before the settlement is made.
For example, Curacel’s fraud AI-powered technology and human analysts (for Curacel, this involves very minimal human interaction) play a role in early fraud detection of submitted claims.
Reduced Cost of Claims Management: better staff ROI
An effective claims management is one that employs technology to automate claims submission, processing and payment – saving insurance companies time and money. By reducing the number of staff needed for administrative tasks, you can get a better ROI from each employee, deploying them effectively.
Using claims management technology for your processing reduce the costs associated with human error and fraudulent claims. Human error can create time-consuming and expensive problems that can lead to fraudulent claims settlement.
Competitive Insurance Premiums
To stay ahead, insurance companies should offer competitive premiums and still remain profitable. An efficient way is using a claims management system to reduce operational costs, which frees up time and money and gives you the advantage to offer competitive premiums.
Technology. Automation. This will give you the edge.
If you are looking to improve your claims management process, try a free demo of Curacel, our advanced claims automation and detection AI-powered software. Curacel makes claims handling fast and cost-effective, giving your business the power to manage and process more claims.