Real time claims processing gives insurers an edge that Gen Z care about
Young people have the highest consumer expectations of any age group according to multiple surveys and reports. Whether they are buying an insurance policy, opening a bank account or sending a parcel, they look for and expect exceptional customer service. Digitally literate, they are the group most likely to access and purchase products and services online. If providers fail to meet their high expectations, they are happy to vote with their feet and change providers.
Our own recent research into insurance customers’ expectations around the claims process confirms this. Of the 1,000 insurance customers we spoke to, 100% of those aged 18 to 24 said that they expect a claim to be settled within a week.
They are likely to be disappointed. Our research found that 43% of customers across multiple insurance lines waited two weeks or more for their claim to be resolved.
We also discovered:
- 18% of 18-24 year olds buy insurance solely from digital players. In contrast, no 55-64 year olds said they would consider buying insurance from a digital player only
- 50% of respondents who buy solely from traditional insurers would consider buying from a challenger brand
- 34% already buy policies from both traditional insurers, such as AXA, Aviva and Allianz, and challenger brands, such as Lemonade and WeFox
The allure of digital challengers
There is a significant adoption of digital insurance products Gen Z and millennials. They actively look for providers offering instant digital access, transactions and customer support, as well as fast settlement times.
The insurtechs providing these services are thriving. Lemonade, the US digital insurer, recently released its best ever results. It saw 76% growth in ‘in-force’ or active premiums, more than triple the number it had two years ago. The company has 1.7 million total customers, 30% more than a year ago.
In Europe, Wefox is gaining traction by selling insurance products through in-house and external brokers, rather than taking the direct-to-consumer route. In July 2022, it raised $400 million in a Series D round at a valuation of $4.5 billion.
How can legacy insurers keep up?
Legacy technology and processes are simply too slow to keep up with Gen Z’s expectations. Traditional insurers have focused on innovating and digitising the front end experience of insurance products, but less on the claims experience.
Legacy insurers are at risk of losing ground to these digital players if they do not invest in technologies that enable excellent customer service through the claims process.
Although they increasingly offer the same, intuitive User Experience (UX) consumers have come to expect from their favourite grocery delivery or ride-hailing apps, back-end processes also need to be updated. This can drive growth and reduce costs for insurers operating on increasingly tight margins.
How Sprout.ai helps insurers attract and retain Gen Z customers
Gen Z consumers want: Quick resolutions
Sprout.ai empowers insurers to settle many claims in real time, and speed up the time it takes to process more complex claims.
Customers want: Great customer service
Sprout.ai performs many of the repetitive data entry and checking tasks that take up claim handlers’ time, freeing them up to speak to customers.
Gen Z consumers want: Confidence that their claim has been processed fairly
Sprout.ai is free from bias and 97% accurate.
Gain a reputation for efficiency and boost tNPS
Sprout.ai’s intelligent claims automation engine empowers insurers to resolve claims in a time frame that meets customer expectations.
This can boost customer experience, and in turn, Transactional Net Promoter Scores (TNPSC), which indicates how likely a customer is to recommend that company’s product or service to others, based on the customer experience of the joining process, resolution of a support question, or interaction with their customer service representative.
How it works
Our NLP and patented OCR technology can extract all relevant information from any type of document. That includes everything from PDFs to handwritten reports, images and freeform notes, as well as structured text and digital content. Manually processing these documents is time consuming and open to inaccuracy, fraud and wastage.
By automating data extraction, insurers speed up processing times and gain a valuable bank of information that can be used to generate insights into customers and their claims.
By attaching external data points such as fraud checks, replacement prices, claims history and more, we can refine and improve customer data. This helps validate the claim, reduce waste and abuse, and identify outliers.
Our technology takes all relevant information and validates it against the policy documents to check whether the claim is covered under the customer’s specific policy. This enables fast, accurate and superior policy checking and claim validation.
Our patented NLP solution has a deep understanding of claims and insurance related language, including synonyms for the same word (e.g. waste, garbage, rubbish). As a result, it can automatically check for coverage a moment a claim is made due to its As a result, claims can be processed in real time, or far faster than before, freeing up handlers to focus on customer service.