Introduction
Insurers are in the business of selling peace of mind, and not insurance policies! It is essential for insurers to compete with industries that contribute to the peace of mind of businesses and consumers, for instance, industries that sell IoT based services that will prevent a loss through proactive actions triggered by alerts from sensors. The business of loss prevention and loss indemnification address the same purpose – delivering peace of mind. In this paper, we will predominantly address loss indemnification however let us not forget the boundaries of loss management is expanding to cover prevention along with indemnification.
The claims process is the moment of truth and defines the experience for policyholders and beneficiaries. Due to intensive paperwork, manual processes, and multiple internal and external stakeholders involved, claim processing has always been a pain point and hence, a key focus area for insurers. Over the years, reducing costs and providing best-in-class claim service has also become a motivating factor.
The pandemic and changing customer expectations have necessitated radical transformation in the claims business process. Now, more than ever, the key business driver for claims is not just operational efficiency or reducing leakage, but also enhancing the end-to-end customer/claimant experience.
Claims Transformation Imperatives - A Shift from Paying Claims to Delivering Peace of Mind
The Gen Z and millennials not only expect their claims experience to be simple, quick and easy, but also demand the best-in-class options in terms of accuracy and personalization. It is estimated that millenials will make up 75% of target customers for insurers by 2025, thus necessitating the need for insurers to focus on the experience. Insurers can no longer play a role of a negotiator while paying claims, but need to take ownership of the end-to-end experience for a customer. Today’s customers need a reliable partner in an insurer who can not only deliver service, but also provide an experience with empathy and care.
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