Customers’ expectations vs reality

Insurance customers anticipate a far faster claims process than the one they experience. How can insurers catch up?

More than 1 in 5 (21%) insurance customers expect claims to be resolved within hours. A total of 100% of 18 to 24 year olds expect a resolution on an insurance claim within one week, according to our recent research into customer expectations of the claims process.

We surveyed 1,000 consumers about their attitudes towards insurance claims. Of that number, 99% were either solely responsible for choosing and purchasing insurance products, or made the decisions with a member of their household. 

They told us:

• 43% of customers across multiple insurance lines waited over two weeks for a claim to be resolved
• 62% of claimants with a “good” or “very good” customer experience said that they stayed with their existing insurance provider
• 31% of claimants with a “good” or “very good” customer experience said that they would use the same provider at some point in the future
• 19% of those with a “bad” or “very bad” experience said they are still a customer of their existing insurance provider
• 89% with a “bad” or “very bad” experience said they would not purchase a policy from the same insurer in the future

Customer service matters most during claims

In today’s highly competitive insurance markets, margins are tight. It is easy for customers to switch between different providers. Delivering excellent customer experience is, therefore, vital for customer retention.

After a customer purchases an insurance policy, the next ‘touchpoint’ is typically when a claim is filed. The customer is likely to be vulnerable or distressed. The insurer needs to deliver and prove that the customer’s purchase was a wise investment.

The time it takes for a claim to be processed and the ease of speaking to a claims handler have a significant impact on the overall customer experience. This can boost customer experience, and in turn, the insurer’s Transactional Net Promoter Scores (TNPS).

How Sprout.ai helps insurers meet their customers’ expectations

Customers 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: To be able to speak to a handler

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.

Customers want: Confidence that their claim has been processed fairly

Sprout.ai is free from bias and 97% accurate. 

How it works

Data extraction

Documents submitted for a claim can include PDFs, 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. 

Our NLP and patented OCR technology can extract all relevant information from any type of document submitted as part of the claims process. As a result, it can be used to automate and provide insights. 

Data enrichment 

We refine and improve the data we have captured by up to 300% by attaching external data points such as fraud checks, replacement prices, claims history and much more. This helps us validate the claim, checking for fraud, reduce waste and abuse and identify outliers. 

Policy checking

Our technology enables fast, accurate and superior policy checking and claim validation. It takes all relevant information and validates it against the policy documents to check whether the claim is covered under the customer’s specific policy. 

Our patented NLP solution can automatically check for coverage a moment a claim is made due to its deep understanding of claims and insurance related language, including synonyms for the same word (e.g. waste, garbage, rubbish). 

As a result, claims can be processed in real time, or far faster than before, freeing up handlers to focus on customer service.