The quality of an insurance and the insurance company can be measured using different important parameters. The quality of the consultation, the speed of processing, the comprehension of the product or the price are all extremely important points.
The true quality and added value of an insurance product and the selected insurance company, however, becomes clear “in the moment of truth”, namely in the event of damage. Through changes in technology, the expectations that all insured individuals and claimants have in their insurance company has changed as well.
What do insurance companies expect in the event of damage compared to before?
- Contact through all channels:
When insurance companies wanted to report damage earlier, they either waited until a local insurance broker opened their office or, in urgent cases, they called the claims department from the insurance company directly. The expectations are different today. Insurance customers want to be able to contact the insurance company through all channels. The submission of a damage claim should be possible online through a customer portal, through an app, by e-mail, in person, by telephone or by triggering a signal, for example, in vehicles or through a speech assistant such as Amazon’s Alexa.
- Competent and regular support:
Customer support in the event of a damage claim used to primarily done by the local insurance broker or in writing by the claims department. Through a decreasing number of insurance brokers, in particular in rural regions, and through a growing affinity to digital media/communication options, consultation has moved. Customers these days expect a response by e-mail, by SMS, via push message in an app or also by telephone through a service agent. The expectation is that the support occurs through a claims processor who can offer a quick solution to the case.
Lengthy communication with very formal letters in an incomprehensible technical language and very long decision-making processes were once normal and generally accepted. Speed, however, has become a central point of quality. In times in which Amazon packages can be delivered within 24 hours and information is available at all times online, all customers expect claims management where all necessary steps are implemented within the shortest amount of time and the customer is informed about the progress.
How can customer expectations be fulfilled and satisfaction increased?
The possibility of contact around the clock provides the customer with a real added value. This added value can, for example, be achieved through a customer portal with the possibility of damage claims, viewing the current status and download/upload options for relevant documents needed to process the claim. The business processes behind this, however, must be integrated in the digital value added chain. Not the products, but rather the customer with their diverse demands is in the foreground.
- Speed and regular contact:
In order to fulfill the customers’ need for an adequate speed in handling claims, the internal processes must be inspected for efficiency and claims digitalized and automated along the value added chain. It is important that the process be considered completely from the beginning to the end.
An example of a digitalized claim process based on damage to a residential building:
The insured individual reports a clogged drain in their single-family home on January 11, 2021 by e-mail. The e-mail contains the insurance number with a short description of the damage and the bill from the installer is included in the attachment. The insurance company receives the e-mail and it goes through an inspection with electronic text recognition (for example, ICR/OCR or also AI-based). The claim date, the insurance policy number, the division and the event are analyzed. A fully automated claim creation is possible with this information. While the claim is being created, the contract conditions are consulted to determine if the contract is still active, if the insurance premium has been paid, if there is coverage by the insurance, if there is a self-deductible or if there are limits to maximum coverage. The attachment is automatically sent to a previously defined inspector. The inspector checks the amount and plausibility of the bill and returns a corresponding dataset back to the insurance company. The insurance company processes the data sent by the inspector and initiates payment to the customer’s bank account. Finally, the customer receives an automated message with information indicating that the payment has been made.
It is possible to process a claim in under 48 hours using these processes.
Such fast processes can also be performed in other divisions using AI as a basis. By reducing repetitive activities, the consultant gains more time to invest in complex cases and to proactively contact customers through the desired communication channel. Through intelligent and digital processes along the value added chain from claims management, a combination of speed, competence and customer closeness can be achieved and customer satisfaction increased.
Would you like to find out more? We would be happy to advise you personally on claims management and digitization at insurance companies. Make an appointment now with our expert Ruslan Rabaev.