How can a digital claims process make a difference in customer experience??

For a very long time in India, the insurance industry has been pretty much resilient to digital evolution. The traditional insurance processes involved cumbersome paperwork, a lack of easy-to-understand information, and tedious documentation. The entire buying and specifically claims journey remained opaque, complex, and frustrating for the customers. Over the past few years, changing business landscape, new digital-first entrants, and evolving customer expectations have transformed the way companies deliver services and handle the moment of truth, yes, including insurers. 

The claims journey starts right from prevention to notification of loss to evaluation and assessment to finally settling the claims. Unfortunately, the ‘moment of truth’ was perceived as nothing less than a nightmare for many policyholders due to exhaustive paperwork, lack of timely information, hazy and lengthy processes. However, that is changing. Insurers are recognizing the importance of a customer-centric approach while settling claims to attract and retain customers. And more and more insurers are leveraging digital technologies to achieve this objective. In one of the reports published by McKinsey, automation can improve customer satisfaction by 15% and improve accuracy by 4% and reduce the claims journey cost by 30%

But the quintessential question remains how?

For example, Insurtech players in India, such as ACKO, have embraced the digital ecosystems to meet customers’ expectations and remove bottlenecks along the claims settlement journey. At ACKO, we empower our customers to raise claims anytime and anywhere with just one click. We simplify the experience at each touchpoint through our mobile app. For example, ACKO customers do not have to wait for minutes to report claims to the support team or filling up multipage claim forms. Instead, they can raise claims through the mobile app by answering a few of the questions and uploading relevant documents. They can even track the status of their claims and get in touch with the support team through the app. The result is often a better outcome for both customers and insurers. When implemented right, digital claims positively impact all performance indicators such as speed, effectiveness, and even customer satisfaction that build healthy NPS.

At Acko, we have implemented a completely paperless and hassles-free claims experience for our customers in all lines of business. We have mostly automated small ticket size micro-claims like flight delays, cancellations of buses, flights, etc. 96% of our micro claims paid are automated using our proprietary system algorithms and with the help of real-time data fetched through deep integration with various internet data intelligence sources (e.g., OAG, VAAHAN, etc) that provide accurate, timely, and actionable digital information). 77% of our bike claims and 33% of our car claims customers get their claims instantly settled using our app or website.

We have set all our digitally enabling processes simple that helps our customers to avoid going out, visiting an office, printing/copying a paper, etc., for claiming at this unprecedented pandemic time.

 Here are a few benefits of integrating digitization into the process:

• Faster settlement of claims
• Achieve cost-efficiency
• Seamless client interaction at every stage
• Customer satisfaction by managing their expectations
• Accuracy and efficiency while settling claims
• Transparency in the process
• Fraud detection and prevention efficiency

 Digital technologies and their role in claims settlements

Virtual assistants, bots, and artificial intelligence technologies can simplify claims settlement and provide relevant data feeds to help insurers become more proactive and offer meaningful services. With data and analytics, insurers will focus more on risk avoidance than risk mitigation. Robust digital First Notice of Loss (FNOL) systems can help in the faster settlement of claims. With technology, the end-to-end journey will become more thoughtful, convenient, and seamless. The spillover is enhanced customer experience, lower costs, and better-operating margins for the insurers.

Role of technology in fraud detection & prevention

One of the further key aspects is the role that digital data-driven technology can play in fraud detection. Fraudulent claims are a well-known financial leakage to any insurers, the cost of which the industry then shifts to its customers, so reputable clients bear the cost of frauds. From software tools analyzing big data to blockchain infrastructures, there are several solutions that digital technology can offer to reduce the number of frauds to insurance companies, with benefits for both companies and customers.