What's insurance claims automation?
Claims processes are one of the most time-consuming areas for insurance companies. From verifying customers and processing their details, to decisions, payouts, releasing customer payments, and recalculating policies. These complex manual tasks are usually performed by humans, increasing waiting times, faultiness and adding expenses to basic business processes. But, these can be automated.
As a result, insurers can apply claims automation to a wide extent – achieving significant cost savings and a high-quality claims department. Together with savings opportunities, automation also help boost the customer journey to increase customer satisfaction. By applying fair decisions, decreasing waiting times and offering digital customer experiences. The deployment of insurance technology is fairly increasing as insurance companies frequently search for ways to optimize their operations.
Benefits from the insurers perspective
So, why is this trending now and what are the main benefits of claims automation? Insurance companies, along with banking and finance are noticing that outsourcing these services is more sustainable than developing automated processes internally. Together with the understanding and expertise that comes with it.
1. Lower costs
By replacing manual processes with automation of claims, insurers can reduce the number of employees needed for simple claims tasks. This often involves paperwork and can completely be transferred to digital automated processes. As a result, more correct decisions will be made faster.
2. Resource optimization
Automation of claims is more than savings. Free up more of the claims adjuster's time to focus on more strategic parts. Employees who would have managed these claims can instead use their time for more valuable tasks, e.g. taking care of customers.
3. Productivity and efficiency
Offer fair and fast decisions, constantly. Unlike humans, automated processes work around the clock, every day of the week, without a single coffee break. By working faster and more efficiently, insurers reduce stretched processes and communication between the insurer and policyholder.
4. Fraud detection
Stay in control with fraud detection. Reduce your property and casualty claims leakage by using controls in the right place, set according to your preferred parameters. Your achieved degree of automation should always pay attention to claims leakage in order for you to stay in control.
5. Scalability
Flexibility and scalability are usually highly treasured in the life of an insurer. As the levels of claims often differ according to seasonal variations. Adding computing power to meet rapid business and operational growth with claims automation is considerably easy, compared to recruiting, hiring and training staff.
