The future of insurance is transformative - shifting from manual to digital. At Cookhouse Lab, we learned that one of the biggest situations that creates frustration among customers is “what happens (or doesn't happen) when a claim is submitted?”. Commercially, claims represent the largest single cost to insurers. According to PWC, up to 80 percent of all premiums are spent on claims’ payment and associated handling charges.
Considering that nearly 50% of insurers are still relying on manual processes, claims handling is a top consideration for automation. Especially since manual processes are error-prone, inefficient and do not fit the customers demand for convenience, visibility and communication.
The high cost of handling claims is the result of a complex process where insurers collect data from different sources, claims handlers manually double-check claims, accuracy and honesty aren't always guaranteed, and many stakeholders need a lot of time to make progress in handling the claim.
In order to automate claims management, the process and services need to become customer-centric so that they focus on the customer experience, efficiency, and effectiveness.
InsurTechs are disrupting the well-established claims process by providing self-service options that put the claims process into the hands of the customer. By using automation and AI for data collection and reviewing claims, money can be in the customers hands within hours. And even better, some companies are giving their customers the choice of cash or replacement. No more waiting time, full transparency and high-level of customer satisfaction.
Below are some of the questions this project will seek to answer:
Claims automation offers the opportunity to create real customer satisfaction by reducing costs equally. The time is NOW to get together and Make Insurance Better.