For the discerning customer of today, claim settlement ratio is a major determining factor when making the decision to buy insurance. According to research published by PwC India, up to 47% of insurance buyers turn to digital platforms for information on their existing insurance policies. By leveraging Artificial Intelligence (AI) and data analytics, insurance companies around the world are eyeing a competitive advantage in terms of shorter claim processing cycles, better risk management and improved customer experience.
Throughout the customer’s lifecycle, AI based tools enable insurance companies to generate qualified leads, understand customer behaviour, prevent fraud and even develop better products to address niche market segments such as expectant couples and retirees.
From the time a customer logs the First Notice Of Loss (FNOL) to the point of claim settlement, AI based tools have helped consolidate multiple processes and reduced the number of decision makers involved. With advanced analytics at their disposal, insurance underwriters can take better decisions, identify suspicious trends and prevent fraud.
On a Case Per Hour (CPH) basis, AI based tools have brought about a revolution in terms of the efficiency of underwriters. This is, in part, because of automated case management functionality offered by AI which automatically analyzes, prioritizes and queues high value or unusual claims for intervention by underwriters.
Looked at from the Cost Per Hour (CoPH) perspective, underwriters can leverage vast amounts of data to recommend better product pricing strategies and improve their productivity significantly compared to traditional claims management processes.
This results into better customer experience. The speed and efficiency with which a claim is handled can leave a lasting impression on a customer.
Digital claims transformations generate impact across all of claims’ foundational key performance indicators.
Globally, as insurers look for ways to reduce operating costs and provide better value to their shareholders, identifying and eliminating inefficiencies has risen to the top of their agenda. By mining vast amount of customer data, insurers can gain critical insights into customer behaviour and establish Key Performance Indicators (KPIs) that are in tune with both, business objectives as well as market expectations. In India, our Insurance ecosystem including customers, agents, brokers and insurers are changing as a result of emerging global trends and evolving customer needs and expectations. Digital transformation has become necessary to keep pace and achieve scalable, sustainable outcomes. Let’s experience the upcoming digital disruption together!