In the property & casualty (P&C) market, the insurance claims experience is a sink or swim moment for the insurer. Ushur explains the value automation can bring in ensuring success.
The point at which a customer reaches out to their insurer to make a claim is a critical time. It is often a moment of heightened anxiety for the customer, who may have suffered a costly and inconvenient damage or loss.
For insurers however, this represents an opportunity. According to Ushur, an AI-powered customer experience automation platform, insurers can ease a customer’s anxiety at this time by delivering a digital-first, empathetic claims experience. Leveraging automation is key to enabling this.
Ushur pointed to a report from Accenture, which revealed up to $170bn of insurance premiums could be at risk in the next five years due to poor claims experiences. The report found that one-third (31%) of the policyholders were not fully satisfied with their home and auto insurance claims- handling experiences over the past two years.
Automation and AI can bring value across the entire claims value chain, from damage assessment and loss estimation, to processing optimisation and subrogation, and beyond.
It is especially valuable when it comes to the response to extreme weather events, such as flooding or hurricanes. Studies have shown such events caused over $2.2trn in damages since 1980 and often overwhelm call centres as policyholders face long waiting times.
After an auto accident or property loss, Ushur said automation can be used to streamline communication as customers and claims adjusters engage and coordinate obtaining documentation and information from multiple parties. This results in significant reductions in operation expenses for the carriers.
What are the best practices?
Ushur argues that in order to strengthen the claims experience, insurance companies should focus on three main actions: communication with the customer, personalisation of the customer experience, and the streamlining of the claims process.
Proactive customer communication begins at the first notice of loss (FNOL) but should continue through to all customer interactions.
“The best question is the one answered before it’s asked,” Ushur said. Insurers can automatically issue a notification at every stage of the claims process, informing the customer of the status of their claim so they do not need to call.
When it comes to personalising the customer experience, it may first appear that this is at odds with automation. However, Ushur argues that an automated claims process can maximise trust and the quality of the customer experience by proactively delivering the relevant facts and information for a customers’ individual claim.
Finally, streamlining the claims process can be achieved with automated processes. This replaces manual, repetitive and predictable tasks.
The claims process is a highly critical time for an insurer to prove themselves to their customers. Dissatisfaction with the process can cause customers to change insurance company. Ushur highlighted a recent study, which revealed that over 85% of people who felt frustrated during the claims process planned on switching carriers.
Ushur’s mission is to make it easier for insurance carriers to automate urgent interactions. Insurers can get up and running in weeks with its pre-built automation workflows with secure, proactive digital self-service options to meet customers in their time of need on their channel of choice.
Earlier this year, Ushur raised $50m in Series C funding, in a round led by Third Point Ventures with participation from existing investors Iron Pillar, 8VC, Aflac Ventures and Pentland Ventures.
Read the full best practices guide here.
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