Claims Transformation: The Critical Role of the Voice of the Customer in Building Technology Solutions

Conference season for Fall 2024 is here, and the focus is clear: Lots of topics on AI and along with claims! Claims transformation has been at the forefront of industry innovation for years, driven by thought leaders and innovators like myself who continue to demonstrate the urgent need to revolutionize the claims process. As insurers balance shifting customer expectations, technological advancements, technical debt, legacy systems, and ever-increasing regulatory demands, the imperative to transform claims processes has never been more critical. At the core of this transformation lies an undeniable truth: the voice of the customer must lead every new solution brought into your organization. #innovatewiththecustomerbackwards

The Need for Claims Transformation

Insurance claims processes have long been viewed as cumbersome, slow, and opaque to customers. It’s 2024, yet 100+ day cycle times for claims turnaround remain the norm. The legacy systems and manual processes that once served the industry are now woefully inadequate in a digital-first world where customers demand speed, transparency, and simplicity—traits rarely associated with traditional claims handling.

The post-pandemic world has only accelerated the push for digital transformation. Remote workforces, the rise in demand for online services, and the need to maintain business continuity in uncertain times have exposed the critical weaknesses in outdated claims systems. To stay competitive, insurers must reimagine their claims processes, placing both customer and staff experience at the heart of this transformation.

The Voice of the Customer: A Strategic Imperative

Incorporating the voice of the customer into claims transformation isn’t just a best practice—it’s a strategic imperative. Today’s customers have expectations shaped by their interactions across all industries, not just insurance. This truth applies not only to end claimants but also to your staff. Whether it’s the seamless service of a tech giant or the instant gratification of an e-commerce platform, these experiences set the standard for customer expectations in every sector—insurance is no exception. And let’s be clear: your customers don’t care that you’re undergoing a modernization effort. They expect results.

Understanding and integrating the voice of the customer ensures that the solutions developed are not only technologically advanced but also aligned with what customers want and need. This approach delivers several critical benefits:

• Enhanced Customer Satisfaction: By designing solutions with the voice of the customer, insurers can directly address the pain points that matter most, leading to higher satisfaction rates and improved customer and staff loyalty. This approach eliminates bias and groupthink in product development.
• Reduced Operational Costs: Customer-driven solutions are more efficient and intuitive, reducing the time and resources required for claims processing. This leads to significant cost savings, freeing up resources for upskilling opportunities and impactful work.
• Increased Market Differentiation: In a crowded marketplace, offering a claims process that is truly customer-centric sets an insurer apart, creating a unique selling proposition. For example, one of our customers at Benekiva has developed its service mark for its claims solution, powered by our technology. It’s their competitive edge that sets them apart from the competition.

Building Customer-Centric Claims Solutions

To successfully integrate the voice of the customer into claims transformation, insurers must implement the following strategies:

• Customer Journey Mapping: Start by mapping out the entire claims journey from the perspective of your customers and staff. Identify key touchpoints where customer satisfaction is crucial and where pain points are most likely to occur. This provides a clear roadmap for focused transformation efforts.
• Customer Feedback Loops: Establish continuous feedback mechanisms—surveys, focus groups, social listening tools—to gather real-time insights into customer experiences. Analyze this data and use it to make iterative improvements to the claims process.
• Leveraging Technology for Personalization: Utilize advanced technologies to personalize the claims experience. Ask yourself: does your customer need to fill out the same information multiple times if you’ve already collected it once? Simplify and streamline.
• Training and Empowering Employees: Align your internal teams with the customer-centric approach. This includes training employees on the importance of empathy, communication, and responsiveness in the claims process.

As the insurance industry navigates the complexities of the digital age, claims transformation will continue to be a focal point. Insurers that succeed in this transformation will be those who prioritize the voice of the customer, using it as the foundation to develop solutions that are not only innovative but also deeply attuned to customer needs.

Incorporating the stakeholder perspective is not a one-time task—it’s an ongoing commitment that requires insurers to listen, adapt, and evolve continually. By doing so, insurers can build trust, foster loyalty, and ultimately create a claims process that is as seamless and satisfying as the best experiences in any industry. In a world where customer expectations are constantly rising, there is no better strategy for success.