Could Claims Challenge Current InsurTech Priorities?

1

The insurance industry is witnessing a lot of change, driven by current technological trends, like the Internet of Things, Big Data and Analytics, Blockchain which are dynamically and irrevocably changing the way it functions. Let's look at the top trends impacting the industry and discuss the various challenges which are driving the current InsurTech priorities and see if we can call out the most important of them all.

Every industry has its leaders and its laggards and the insurance industry is not an exception to this. Deep pockets are helping some insurers to take advantage of digital technologies to change the way they function and to:

1. Offer new models and personalized products to meet changing customer expectations, which are driven by online retail sales models,
2. Partner with technology players to ensure that they keep up with the emerging trends in technology and to take advantage of the Internet of things to adopt connected sensors or devices to collect data for loss prevention and employ better pricing methods in property & casualty, life as well as health insurance.
3. Establish a cyber-security strategy to protect the sensitive personal and business data stored by them and comply with privacy regulations.
4. Adopt cloud computing, AI and automation to improve speed and flexibility and to settle claims faster to offer better customer satisfaction,
5. Use advanced analytics to derive strategic insights and proactively plan future business offerings and gain competitive advantage.
6. Consider the use of blockchain technology to add "smart" contracts and secure, decentralized data collection, processing and dissemination to their processes.

Are these strategic initiatives sufficient to enable companies which adopt them to enjoy industry and market leadership, and ultimately, success? What capabilities are needed for insurers to prepare themselves to meet the demands of the industry, in channel expansion or business model development, as it evolves? How can insurers prepare for the demands of tomorrow even as they meet today's expectations from them? The aim of this post is to postulate that many insurers are failing to recognize the importance of claims management to their business, even as they are focusing on many of the other strategic imperatives facing them. Let's explain why we would say so.

It is an open secret that customers are always happy with a good claims settlement experience, but tend to get very upset and start posting strong negative online feedback when their claim is delayed, disputed or rejected. Though claims satisfaction is an extremely critical component of an insurer's overall customer relationship management challenge, it is only a work in progress for most at the current time. Instead, they need to pay attention to the customers and also focus inward, as they delve deep into the reasons for a customer's dissatisfaction:

1. Insurers need to pay close attention to customer feedback and satisfaction levels with their claims filing process and settlement experience, especially when they are rejected.
2. Insurers have to capture customer feedback and factor it into the way their processes are functioning and question the clarity of their sales pitch itself, and see if the claim was fairly rejected.
3. They need to pay close attention to their reputation in this key area of customer satisfaction, which could impact their ability to retain a customer.
4. It must be remembered that dissatisfied customers never come back for additional coverage or another policy.
5. Even agents who find too many customers raising their voices against an insurer's claim settlement process tend to move business away from them.
6. The seamlessness of customer experience needs to extend to claims handling, as claim filling becomes a smooth process.
7. Insurers can use technology to provide more options for filing a claim, including the uploading photos and videos, with increased speed and accuracy and reduced contact points with humans.
8. As algorithms detect fraudulent claims more easily, claims handling is improving in efficiency. Data driven claim prevention can help decrease costs and deliver value by predicting actual risk and reducing premiums.

In managing the delicate balancing act between identifying fraudulent claims and paying legitimate ones, insurers could create a negative relationship with a customer by being too strict or overly suspicious. But that doesn't mean they can be trusting and keep approving every claim in a lenient manner. Any unfairness, whether real or assumed, could determine whether a policy gets renewed again, or our online reputation suffers, or the insurer could face a legal dispute in a court. Even as insurers work hard to identify the technologies needed for them to expand their distribution channels and ensure that they create optimized customer journey; they cannot lose sight of the importance of eliminating fraudulent claims from their list of priorities. Which is why, we feel that claims management could challenge InsurTech priorities for the insurance industry. What do you think? Please write in and share your thoughts.

Prime insurance solutions offers comprehensive leading-edge proprietary analytics. Our expertise has proven effective by streamlining legacy business processes such as enrollments, underwriting, claims, and customer services.Our diverse full service portfolio, workflow management software solutions and dedication to acquiring the best employees has transformed us into a trusted partner in the insurance industry. http://www.primetgi.com/insurance-software-solutions/

Article Source: https://EzineArticles.com/expert/Sud_Gover/2254163

 

5 Basic Insurance Mistakes to Avoid

By Shalini M  |   Submitted On January 20, 2020

  

Having basic insurance coverage is essential. If you don't apply for insurance, know that it will be a big mistake. Therefore, you may want to have enough coverage to meet your needs. Also, it's important that you realize the importance of insurance. Given below are a few common mistakes that you may want to avoid when it comes to buying insurance.

Ignoring the Importance of Basic Insurance

You must have at least basic insurance. For instance, it can protect you in case of car theft and accidents. In addition, basic health insurance can help you save on your medical bills. If you can't go for a comprehensive policy, make sure you get a catastrophic or deductible plan.

IF YOU HAVE BASIC FIRE AND BURGLARY INSURANCE YOUR HOUSE AND PROPERTY IS PROTECTED

According to the Affordable Care Act, you must have health insurance. Otherwise, you may have to face fines at the time of filing your taxes. The health plan you opt for should meet your minimum requirements. A plan designed for disability protection, for instance, can protect you if you fall seriously sick or get injured.

Opting for an Expensive Plan

Another common mistake is to purchase a plan that is more expensive. It can be hard to estimate how much you should spend on a plan, especially when it comes to liability insurance. Therefore, we suggest that you have a discussion with an agent about your assets. At young age, you won't have to pay for an expensive plan as you won't have a lot of assets to protect.

Opting for a Cheap Plan

Under insuring yourself is another common mistake. Ideally, your basic plan should be able to cover your expenses. In other words, in case of an accident, your plan should be able to pay for all the medical expenses.

For a health plan, the same is true. If you are in the United States, one million dollar can be enough. However, if you have a major illness like cancer, your medical expenses will be much higher.

Opting for the Wrong Insurance

Getting the wrong type of insurance policy is another common mistake. It's not a good idea to opt for policies that won't be of any use to you. For instance, if you are under the age of 30, you don't have to get different types of policies.

Keep in mind that you don't have to go for all types of policies. If you know what you are going to get, you won't have to get surprised at the time of filing a claim.

Not Considering Different Policies

Make sure you shop around before deciding on a policy. It's better to do this every now and then. This will help you save money by opting for a different policy. In addition, you may consider policies that offer discounts based on your location or profession. Shopping around won't take much time but save you a lot of money. Plus, it will help you avoid common mistakes.

In short, these are some common mistakes that you may want to avoid when it comes to buying the right type of insurance policy. It's much better to consult a health insurance agent to make an informed decision.

If you are looking for a California health insurance agent, we suggest that you check out Health Insurance Agent.

Article Source: https://EzineArticles.com/expert/Shalini_M/2609777