Consumers care about transparency – they want to know how decisions about their claims were made, even more so if AI is involved.
Our latest research report, AI and Claims Processing: What Customers Really Think, showed that customers valued being able to trust that a claims decision was made fairly (62%) was more important than anything else – even speed of outcome.
When AI is used in claims processing, outcomes are fairer as it works without bias or human error. It can boost efficiency, especially when managing routine tasks and providing rapid insights. However, customers, for the most part, are unaware of that fact, according to our research.
AI’s integration into claims processing is inevitable. It’s a question of when, rather than if. But exceptional customer service will often involve human empathy, nuanced discussions, and personalised solutions. It’s important to help customers understand AI can help deliver that.
In this series, we’ll expand on some of the takeaways from our report to explore how and why insurers can take their customers on this journey with them.
How can insurers implementing AI educate and reassure customers that processing will be fair, fast, and that they can still speak to humans?
Clear and User-Friendly Documentation
The insurer can provide customers with well-organised, plain-language documents explaining how AI is used in the claims process. These documents should be easily accessible on their website or within their mobile app.
Educational Content
The insurer can create informative videos or webinars that showcase how AI expedites claims processing while emphasising fairness and transparency. Real-life case studies can illustrate successful claims experiences. Quotes or testimonials from customers who have had positive experiences with AI-enabled claims processing can be compelling and reassuring.
Interactive Training
Offering virtual training sessions where customers can interact with the AI-powered claims system in a safe environment. These training sessions can demonstrate the fairness and speed of the process.
Online Communities and Forums
The insurer can host online forums or social media groups where customers can discuss their claims experiences, including interactions with AI. Company representatives can join these discussions to provide insights and address concerns.
Customer Support
Ensure that customer support agents are well-trained in AI claims processing. They should be able to explain the process and provide reassurances about fairness and the availability of human assistance.
Dedicated Help Centres
Create a comprehensive online help centre that includes FAQs about AI, troubleshooting tips, and articles on fairness and transparency in the claims process.
Product Demos
Host live product demos where customers can witness AI claims processing in real-time. These demos should highlight the speed, fairness, and the option for human contact when needed.
Self-Service Tools
Integrate in-app tutorials or tooltips that guide users through the AI claims process. These tools can emphasise fairness and the ability to speak to a human representative.
Feedback Mechanisms
Encourage customers to provide feedback on their claims experiences, particularly regarding fairness and AI usage. Actively use this feedback to improve the process and reassure customers.
Collaborative Learning
Involve customers in co-creation programs, allowing them to share their perspectives on AI claims processing. This demonstrates a commitment to including customer input and ensuring fairness.
Transparency
Clearly communicate the steps taken to ensure data privacy and security. Explain how AI is programmed to be unbiased and fair. Transparency builds trust.
Simple User Interfaces
User-friendly interfaces make it easy for customers to understand and navigate the claims process. Offer options for more detailed interactions for those who want them.
Why do this?
This might sound like a lot of extra work, but implementing strategies to educate and reassure customers about AI usage in insurance claims processing can lead to numerous long-term benefits and competitive advantages.
Enhanced Customer Trust
Building trust with policyholders is essential in the insurance industry. Insurers that transparently educate customers about AI and demonstrate its fairness and effectiveness can establish strong, long-lasting trust. Customers are more likely to renew policies and recommend the insurer to others.
Reduced Customer Churn
By addressing customer concerns and offering reassurance, insurers can significantly reduce customer churn. Policyholders are less likely to switch to competitors when they feel secure and informed about the claims process.
Reputation Building
Insurers that take a proactive approach to customer education and transparency develop a positive reputation. This can lead to increased market share and a competitive edge over other insurers that are less forthcoming.
Lower Support Costs
Education and transparency can lead to a reduction in customer inquiries and support requests. Customers who understand the process are less likely to seek assistance, ultimately lowering operational costs for insurers.
Higher Customer Satisfaction and TNPS
Satisfied customers are more likely to be loyal and recommend the insurer to others. The investment in customer education and reassurance can lead to higher overall customer satisfaction, which is essential for long-term success.
Competitive Differentiation
By taking a leadership role in customer education about AI, insurers can differentiate themselves in the market. They can position themselves as industry leaders who prioritise transparency and customer satisfaction.
Regulatory Compliance
In some regions, regulators may require insurers to provide a certain level of transparency and education regarding AI usage. Being proactive in meeting these requirements can prevent costly regulatory issues in the future.
Long-Term Growth
Insurers that invest in customer education and reassurance are better positioned for sustainable growth. Satisfied and informed customers are more likely to continue their policies, resulting in steady, long-term growth.
Brand Loyalty
A focus on transparency and customer education can foster strong brand loyalty. Loyal customers are less likely to switch insurers, contributing to better retention rates and consistent revenue streams.
Positive Word-of-Mouth
Satisfied and informed customers are more likely to share their positive experiences with others. This word-of-mouth marketing can lead to organic growth and a positive brand image.
Conclusion
Transparency in claims processing, especially when AI is involved, is very important to customers. As AI integration becomes more widespread in the insurance industry, it’s crucial for insurers and solution providers alike to educate and reassure customers. By implementing a range of transparent strategies, from clear documentation and educational content to interactive training and customer support, insurers can establish trust, reduce churn, build a positive reputation, lower support costs, and drive long-term growth. This will not only boost customer satisfaction but set insurers apart in a competitive market.
About Sprout.ai
Sprout.ai is an award-winning claims solution for the insurance industry, partnering with major insurance companies worldwide. Our vision is to make every claim better by using groundbreaking AI products to expedite the claims process while preserving the human touch.
