Claims are a vital moment for insurers. They are likely to be the first time a customer comes into contact with the insurer since they bought their policy. They are the moment the customers discovers whether that purchase was worth. According to McKinsey, claims processing will be the most important function in the insurance industry by 2030. Meanwhile, poor claims experiences could put up to $170 billion in renewal premiums at risk globally over the next five years, according to Accenture.
However, processing claims has traditionally been a slow, manual task. As legacy software struggles to process unstructured data, claim handlers must spend days sifting through forms, handwritten documents, PDFs and images to extract the relevant information. Once they have done all that, they need to check whether a customer is covered, and then initiate the payment. With the volumes of data available today, manually processing claims is more laborious than ever. It is unsurprising claims handlers have little time to focus on customer service.
Not only is this process costly and inefficient for the insurers, but customers are left waiting weeks for responses, decisions and payments. This delay couldn’t come at a worse time for them. Often, they will have just gone through a stressful experience that led to them making the claim. Adding the stress of waiting leads to dissatisfied, frustrated customers, who are driven to look for an alternative insurer.
Insurers have traditionally faced obstacles in upgrading the claims process. Regulation has made it difficult for them to experiment, while limited competition has given them little encouragement to do so. Today, that is no longer the case. Real time, automated claims processing is possible. The insurers that offer it will be the most appealing option to customers, whether they are legacy companies or digital challengers.
At Sprout.ai, we have enabled insurers to reduce the average time it takes to settle a claim from 30 days to less than 24 hours. In many cases, we enable instant settlement. Claims handlers have time to focus on serving their customers with empathy, speed, and transparency.
We’ll explore the benefits of automating claims processing in greater detail below.
When customers make a claim, they want to know whether the claim has been successful, and then receive their payment as quickly as possible. Waiting weeks or even months is an incredibly frustrating or difficult experience.
When processing is automated with Sprout.ai, claims can be settled in hours, or even in real time. Our AI can process data far faster than a human can, so handlers no longer have to waste time on clerical tasks. One leading insurer is now settling 45% of customer claims by phone and online in real time using our software.
Claim handlers can focus on customers
When claims handlers need to collect and process claims information, review policy terms, oversee payments, and update customer information, they have little time to speak to customers. When insurers automate claims processes using our technology, handlers can respond quicker to customer queries, and resolve their claims faster.
More accurate, better informed decisions
When claims processing is automated, claims teams can process large volumes of data at scale, at speed, and with fewer errors or biases than a human. Insurers and customers can be assured that the fairest possible outcome has been achieved.
Happier customers and higher tNPS
Customers are used to efficiency and simplicity from many service providers, from shopping to banking. They expect the same from their insurers, but are unlikely to receive it unless the insurer is using automated claims processing.
Faster claims processing leads to happier customers and higher TNPS. Not only do customers receive resolutions faster, but they are more easily able to speak to claims handlers, and the outcomes are more accurate.
Higher customer satisfaction, driven by the better customer service and faster processing times will lead to increased customer retention to other major insurers and digital incumbents.
Automation can reduce the cost of a claims journey by as much as 30%, according to Mckinsey. With automated claims processing, handlers spend less time on each claim. Despite this, insurers can be sure that the claim data has been processed with high levels of accuracy, and without bias.
These savings give insurers a competitive edge. They can be passed on to customers, used to beat inflation, or boost profits.