Can you stitch together the various applications, data sources and processes across the complete value chain? If not you are not just throwing away profit; you are compromising customer and staff satisfaction.
McKinsey shows how an insurer can double profits over 5 years and follow the link at bottom of article to see realisable metrics from effective claims technology integration. First let's examine the six ways to improve claims outcomes.
- Automate expertise with Smarter Solutions
- Streamline IT Investment
- Enhance Adjuster's (Claims Handler's) UX
- Optimise Claims Workflows
- Improve performance with Actionable BI
- Digitise Insurance Services
McKinsey makes it clear that you can reduce the costs of the Claims Journey 30% by adopting smarter solutions. Automate simple, repetitive and predictable processes freeing up adjuster's time for dealing with customers. Provide the communications and orchestration tools to manage the whole claim to delight customers
Streamline IT Investment
II investment and resource issues are one of the biggest blocks to innovation. Legacy systems inhibit digital transformation. Insist on a digital claims platform that stitches together all the processes, data and apps into one end-to-end solution in an agile solution i.e. enables iterative improvement without dependence on the vendor.
Enhance Adjuster's/Claims Handler's UX
Adjusters cannot deliver customer delight and operational effectiveness if they have to keep multiple applications open diving into each to complete tasks. Insist they can work from one digital record for the complete claims value chain so they can save an average of 88% of total time.
Optimise Claims Workflows
Every insurer is different and customer expectations constantly change so you must be able to customise customer journeys and adjuster's workflows. WITHOUT coding or dependence on the vendor. Can you exploit the knowledge and skills of adjusters to configure optimal customer journeys? If not you are bound to be second best.
Embedded Analytics in the digital claims platform is an essential must have. Actionable insights without having to switch to BI app. Automatic alerts when supply chain partners deviate from SLAs. Real-time alerts to anticipate potential problems. Predictive analytics to plan and execute better decisions.
Typically 35% of supply chain costs are waste time and materials. The potential for better service at lower cost is enormous if you do an Uber, Airbnb and transform services:-
- Auto Repair Networks
- Property Drainage and Subsidence
- Auto casualty claims flows
The multiplier effect
Combining all six steps multiplies the benefits to customers and insurers. Ignoring this imperative consigns you to the second tier.
“Time for Insurers to face Digital Reality”. https://www.mckinsey.com/industries/financial-services/our-insights/time-for-insurance-companies-to-face-digital-reality
“Capturing Value from the Core” ;https://www.mckinsey.com/industries/financial-services/our-insights/capturing-value-from-the-core
The P&C customer rediscovered through analytics; https://www.bain.com/insights/the-p-and-c-customer-rediscovered-through-analytics
Digital Disruption in Insurance: Cutting through the noise ; https://www.mckinsey.com/industries/financial-services/our-insights/digital-insurance
How a Digital Approach is improving customer satisfaction at a major insurer ; https://www.bcg.com/en-gb/industries/insurance/digital/bcg-digital-approach-improving-customer-satisfaction-productivity.aspx
Attacking complexity in Insurance Products and Processes; https://www.bcg.com/en-gb/industries/insurance/attacking-complexity-in-insurance-products-and-processes.aspx
Though the Property & Casualty (P&C) industry has made definitive inroads into technology adoption, there remain vast opportunities for the sector to reap the benefits of technology to achieve better, faster results. Insurers and claim organizations at large still have a big opportunity to digitize their operations to improve claim and overall business outcomes––incumbent insurance carriers could more than double their profits over a five-year period by digitizing their current business operations, according to a McKinsey report.