Post-pandemic digital transformation
Risk analysis and crisis planning are the core business of most insurance companies. So, from the onset of the Covid-19 pandemic, insurance companies, like many other companies, had to immediately make their entire operations remote while continuing to field calls, answer questions and pay claims.
The pandemic accelerated the rapid transformation we see today in the finance industry as digital technologies are reshaping how we pay, lend, insure and manage wealth. Insurance companies have had to augment their capabilities to maximize the benefits of new advanced tools while maintaining personal engagement at critical moments.
The most improved digital tool is in claims management and processing, addressing the need for faster payment and settlement of claims. J.D. Power’s 2021 U.S. Property claims satisfaction study analyzed customer experiences with home insurance claims before and during Covid-19 and found that fully digital claims reduced the average time of payment by up to 5.5 days — resulting in the highest overall customer experience satisfaction scores in the survey’s 14-year history.
In 2021, the Deloitte Center for Financial Services research revealed that claims handled virtually (often using mobile apps and imaging technology) and digitally (with automated straight-through processing) increased from single digits to 55%.
Today’s baby boomers and Gen Z policyholders are looking for a seamless real-time claims management process on the platforms they use frequently. Insurance companies must be creative and design tools that will not only meet the needs of baby boomers but also satisfy the demands of tech-savvy Gen Z-ers.
More and more insurance companies are finally answering the call by implementing innovative technology tools and accelerating their adoption of next-generation digital engagement, automation and artificial intelligence capabilities. These tools should include self-service options via their websites, company apps and direct bank deposits.
Self-service insurance allows policyholders to submit their information directly to carriers for faster communication. Claims submission is a process that can be made more efficient with self-service. An insurance self-service portal is a software solution dedicated to automating insurance carriers’ operations and simplifying how policyholders get insurance services, such as client and claims management, insurance accounting and much more.
These self-service portals can increase sales for the insurance provider and provide key touchpoint opportunities for customer engagement and brand retention. The operational and customer experience (CX) benefits of self-service insurance can highlight operational efficiency and improve customer experiences and ratings of the insurance company. From the CX perspective, your customers will enjoy the ease of scheduling appointments and appreciate the ability to control the process when they are ready.
Straight-Through Processing (STP)
Another helpful tool essential to ensuring faster transaction processing is Straight-Through Processing (STP). STP is an automated process done purely through electronic transfers, and there is no need for any manual intervention. In payments and securities trading, STP is implemented in various technical scenarios such as computers, mainframes, electronic exchanges and the internet. The need and opportunities for STP processing continue to grow and it is a crucial tool for insurance companies seeking new ways to meet customers’ demands.
Trends transforming the insurance industry
Long gone are the legacy models of the old insurance era. Tech-savvy insurance companies are paving the way and staying ahead of the game by providing innovative technology in areas such as AI and automation, cloud engineering, data science and analytics, machine learning, software development and cybersecurity. This evolving industry landscape and its players are implementing strategies to enable their firms’ digital transformation. For example, McKinsey & Company identifies the top tech trends transforming the insurance industry as Applied AI, Distributed Infrastructure, Future of Connectivity, Next-Level Automation and Trust Architecture.
It’s no longer enough to provide excellent customer service. Insurance companies must be where their customers are and listen to what they say. Doing so will create a guaranteed process to serve their customers better.
To learn how insurance companies prioritize CX in their communications strategies, download the best practice guide “Ensuring a future connection: How insurance providers can maximize a modern CX.”