An uptick has been lately observed in the insurance sector. Whether policy issuing through digital processes or improving customer interaction through AI chatbots, substantial technological advancements have taken place in the insurance industry. And the domain of claim processing does not fall behind. The efforts made in the digital transformation of the claim processing system sums up to bring about some significant changes in the sector.
Digitally advanced claim systems are becoming popular rapidly, capable of addressing customers' pain points and giving them the necessary ease with their claim settlements. As per reports, Indian insurance companies have recently made a huge shift to the digitalization of claim processing, from where at least 20% of claims have got purely settled digitally.
So, today, in this article, we will discuss how the insurance claims process went through massive technological advancement, changing the face of the insurance industry.
The process of claim automation comes with its unique benefit of reducing the expense of loss adjustment. Companies that automate their claim processes can easily leverage the number of claims handled without increasing the headcounts.
This digitized approach helps insurance companies to focus more on complex claim processing to facilitate efficient claim disbursement. At the same time, the automation swiftly handles simple claims too. As a result, it helps insurers to do away with the expenses of handling smaller claim amounts.
Moreover, from customers' perspectives, claim process automation helps them get prompt and easy claim settlements. Customers with complex claims get better availability of customer support, which ultimately helps them achieve the best user experience.
Tackling claim fraud is a cumbersome task for insurance companies. It is pretty challenging to detect claim frauds manually as it takes a lot of time and involvement, further affecting the productivity of the insurer.
But the advanced claim processing system facilitating automation of processes with machine learning and AI algorithms changes the entire scenario. Such systems use predictive analysis to identify dubious claims and get them reported. The more claims data these systems analyze, the more effective they become in detecting sceptical patterns and key characteristics suggestive of fraud. Then, based on the reports generated by these systems, special investigative teams or the claims staff look into the matter while following up with the customer.
From verifying documents and claim proofs to managing complete paperwork for initiating claim processing, the entire process suffers through unnecessary delays. Humans are not machines. They need to go through every single detail before sanctioning the request for claim settlements. But this can disrupt the workflow of the entire system.
With rapid changes in various scenarios, customers’ interest in buying insurance policies has increased. Especially the COVID-19 pandemic situation has given a huge escalation in the metrics. Thus, insurance companies cannot stick to only a few claim processes for a long time. So, the inclusion of AI systems in claim processes gives workers a chance to enhance their speed. In addition, it helps to maintain a steady and quick workflow in the entire method of claim sanctioning.
Humans tend to make mistakes when it comes to handling the bulk processing of insurance claims. But, in the course, insurance companies pay a substantial cost for the mistakes done on their part. So, the digital transformation of claim processes rightly addresses this pain point and enables insurers to process everything seamlessly with automated systems.
It reduces the delay in claim processing, which works as a factor of satisfaction for customers needing quick settlements.
The changing scenario of the insurance sector in India is proof that companies are bent upon making some positive technological advancements in the claim processing system. Thus, the digital transformation with advanced claim systems helps insurers embrace a steady flow in the entire process and improve customer experience and satisfaction.