Reducing operational costs while enhancing efficiency and customer satisfaction is the ultimate goal for insurers.
One of the most effective ways to achieve this is by automating claims processing. Sprout.ai is a powerful tool that does just that. It acts as the brains behind the scene in claim processing, helping insurers globally streamline operations and cut costs, and enabling claims handlers to spend more time with customers.
Here’s why investing in Sprout.ai can lead to substantial cost reductions for insurers.
Streamlined claims processing
Manual claims processing is often slow and labour-intensive, leading to high operational costs.
Sprout.ai uses AI and machine learning to automate the claims lifecycle—from submission to settlement—minimising the need for manual intervention. This automation enables insurers to cut claims operation costs. Additionally, it enhances claims handlers’ efficiency, allowing them to focus on complex claims and bring more value with their expertise.
For one insurer this resulted in a 48% cost reduction in claims operations.
Reduced administrative costs
One of the significant cost factors for insurers is the administrative overheads associated with claims processing.
These include the costs of data entry, document verification, and manual reviews.
Sprout.ai significantly lowers these costs by acting as the brain behind the scene, automating repetitive tasks like data extraction, document verification, and initial claims assessment. This not only speeds up the process but also reduces time spent on administrative tasks.
One insurer achieved an average $21 cost reduction per claim, across millions of claims annually.
Fewer errors
Human error in claims processing can lead to costly rework and potential legal issues.
Sprout.ai minimises these errors by using AI to ensure accuracy in data entry and document verification. By reducing the occurrence of errors, insurers can avoid the costs associated with reprocessing claims and handling disputes, leading to smoother operations and better resource allocation.
At one insurer, Sprout.ai processes 60% of claims in real time with a 96% accuracy.
Enhanced fraud detection
Fraudulent claims are a significant cost burden for insurers.
Sprout.ai’s AI algorithms are designed to detect anomalies and potential fraud in claims submissions. By identifying fraudulent claims early in the process, insurers can prevent significant financial losses. This proactive approach to fraud detection not only saves money but also enhances the overall integrity of the claims process.
With Sprout.ai, every claim can be checked for fraud, no matter how small.
Faster claims resolutions
Speed is a key factor in claims processing.
Faster claims resolution leads to higher customer satisfaction and retention, which are crucial for an insurer’s profitability. Sprout.ai’s automation accelerates the claims process by quickly triaging and categorising claims, allowing for faster approvals and settlements. This improved efficiency translates to cost savings as fewer resources are needed to manage each claim, and quicker resolutions reduce the time claims remain outstanding.
Sprout.ai reduces claim duration by 22 days on average, resulting in faster processing times with higher accuracy.
Improved resource allocation
By automating routine tasks, Sprout.ai allows insurers to allocate their human resources more effectively. Claims handlers can focus on complex and high-value claims that require human judgement and expertise. This not only improves the quality of claims handling but also reduces the costs associated with training and maintaining a large team of claims processors.
Sprout.ai enables a 50% increase in claims automation on average, allowing teams to spend more time with customer and on complex cases.
Scalable for growth
As insurers grow, so do their operational complexities and costs.
Sprout.ai’s claims automation solution is highly scalable, allowing insurers to handle increasing volumes of claims without a proportional increase in costs. This scalability ensures that insurers can maintain operational efficiency and cost-effectiveness even as they expand their customer base and service offerings.
Sprout.ai provides an over 30% capacity increase, boosting productivity for handling simple, medium, and complex claims.
Data-driven insights
Sprout.ai provides insurers with valuable data-driven insights into their claims processes. By analysing patterns and trends, insurers can identify areas for further improvement and cost savings. These insights enable insurers to make informed decisions about their operations, leading to continuous process optimisation and cost reduction.
Sprout.ai’s impact on costs: Key stats
- 48% cost reduction in claims operations
- £21 cost reduction per claim, achieved across millions of claims annually
- 22 days reduction in claim duration, resulting in faster processing times with higher accuracy
- 50% increase in claims automation, allowing teams to spend more time on customer interactions and complex cases
- Over 30% capacity increase, boosting productivity for handling simple, medium, and complex claims
- <24 hours from claim to settlement, ensuring rapid resolutions
- 98%+ accuracy in claims processing
- +25% tNPS (transactional Net Promoter Score)
Processing a travel claim with Sprout.ai vs. manually
Manual processing
Step 1: Claim submission
A customer submits a travel claim, including details of a flight cancellation and associated expenses.
Step 2: Document collection
Claims handler manually requests additional documents such as flight tickets, receipts, and proof of cancellation. The customer emails these documents, which can take several days.
Step 3: Document review
The claims handler manually reviews each document, verifying their authenticity and relevance. This process is time-consuming and prone to errors, potentially taking a few days to a week.
Step 4: Data entry
Information from the documents is manually entered into the insurer’s system. This step is labour-intensive and increases the risk of data entry errors.
Step 5: Approval process
The claim goes through multiple layers of manual approval, which can be delayed due to the availability of approvers and the complexity of the claim. This adds additional days to the processing time.
Step 6: Communication with customer
The claims handler communicates the decision to the customer, which might involve several back-and-forth emails or calls, further delaying the process.
Total processing time: 2-4 weeks
Processing with Sprout.ai
Step 1: Claim submission
A customer submits a travel claim.
Step 2: Automated document collection
Sprout.ai highlights additional documents required for the claim, such as flight tickets, receipts, and proof of cancellation.
Step 3: Automated document review
Sprout.ai uses AI to quickly scan, verify, and validate the documents. This process takes seconds instead of days and ensures high accuracy by reducing human error.
Step 4: Automated data entry
Information from the documents is automatically extracted and entered into the insurer’s system, eliminating manual data entry errors and speeding up the process.
Step 5: Automated approval
The claim is automatically routed through predefined approval workflows. AI algorithms assess the claim based on policy terms and conditions, significantly reducing the need for manual intervention. This step is completed within seconds.
Step 6: Decision
Sprout.ai’s system automatically communicates the decision to the claims handler, providing a clear and detailed explanation. Any additional queries are managed through automated responses, ensuring quick resolution.
Total processing time: seconds
Read more: Introducing the Zero-Shot model for even faster claims processing in 2024
Key benefits of processing claims with Sprout.ai
- Automated processing reduces the total time from weeks to seconds
- AI-driven document verification and data entry minimise errors.
- Automated workflows reduce the need for manual intervention, allowing claims handlers to focus on more complex cases.
- Faster resolution times and clear, automated communication improve the customer experience.
Conclusion
Investing in Sprout.ai’s claims automation solution will significantly reduce operational costs while enhancing efficiency and customer satisfaction.
As the insurance industry continues to evolve, embracing advanced automation technologies like Sprout.ai will be crucial for staying competitive and profitable.
Discover how Sprout.ai can transform your claims processing and deliver substantial cost savings for your business.
