Touchless or “Right Touch” Claims Processing

The insurance industry is going through a transformational shift as companies are increasingly turning towards digital technologies to improve their customer experience and streamline their operations. One area where technology is having a significant impact is in claims processing. Traditionally, claims processing involved a lot of manual labor and paperwork, which made the process slow and error prone. However, with the advent of “Right Touch” claims processing, insurers can now process claims faster and more accurately, while also reducing costs. We will explore what touchless claims are, how they work, and the latest technologies that are making touchless claims a reality. “Right Touch” claims handling combines the proper mix of speed, accuracy, and empathy in all phases of the claims value chain. ?

There is always a debate on the merits of these approaches.?In my view, Touchless claims processing focuses on utilizing automation and cutting-edge technologies to streamline the entire claims process without the need for human involvement. By leveraging artificial intelligence, machine learning, and natural language processing, touchless claims processing can swiftly assess claims, validate information, and make accurate decisions. This automated approach significantly reduces processing time and resources, resulting in faster claim settlements and heightened customer satisfaction.?

Whereas Right Touch claims processing emphasizes a balanced approach that combines automation with personalized human intervention. It acknowledges that certain claims necessitate a more tailored and empathetic approach, particularly those involving complex or high-value cases. With right touch claims processing, technology is employed to expedite routine claims, freeing up claims adjusters to focus on intricate matters that require their expertise. This approach ensures that each claim receives the appropriate level of attention, leading to fair and accurate settlements while maintaining a human touch. ?

Both these approaches have their merits. Touchless claims processing excels in efficiency, speed, and cost-effectiveness, making it ideal for handling a large volume of straightforward claims. Conversely, right touch claims processing recognizes the value of human judgment and empathy, delivering a personalized experience for more intricate or sensitive claims. ?

There are several technologies that are currently being used to enable both approaches. These technologies work together to create an automated claims process that is faster, more accurate, and more cost-effective than traditional claims processing methods. These technologies include:

1. AI and ML: AI and ML are being used to analyze claim data, customer data, and other relevant information to determine the validity of claims and the appropriate payout amount. These technologies can also be used to automate the claims approval process, which can significantly reduce the time it takes to process claims.
2. OCR: OCR technology is being used to digitize documents, such as invoices, receipts, and medical reports, making it easier to process and analyze them. This can significantly reduce the time it takes to process claims and improve the accuracy of claims processing by reducing the risk of errors.
3. Chatbots: Chatbots are being used to communicate with customers and answer their questions about the claims process. This helps to reduce the workload of customer service agents and improves the overall customer experience.
4. Blockchain: Blockchain technology is being used to securely store claim data and create a transparent and auditable claims process. This can improve the accuracy of claims processing and reduce the risk of fraudulent claims.
5. Telematics: Telematics technology is being used to collect data from connected devices, such as sensors in vehicles, to automatically detect and report accidents. This can significantly reduce the time it takes to process claims and improve the accuracy of claims processing by providing real-time data.
6. Image recognition: Image recognition technology is being used to analyze photos and videos submitted with claims. This can help to verify the validity of a claim and determine the appropriate payout amount.
7. Data analytics: Data analytics is being used to analyze large amounts of data to identify patterns and trends. This can help insurers to identify potential fraudulent claims and improve their risk assessment models.
8. Digital signatures: Digital signature technology is being used to enable customers to sign documents electronically, reducing the need for physical paperwork.
9. Robotic Process Automation (RPA): RPA technology is being used to automate repetitive tasks, such as data entry and document processing, reducing the workload of claims processors and improving the speed and accuracy of claims processing.
10. Mobile apps: Mobile apps are being used to enable customers to file claims and submit supporting documents using their mobile devices. This can significantly reduce the time it takes to process claims and improve the overall customer experience.?

The Benefits

Implementation of touchless claim processing can create an impact on the insurance industry, transforming the way insurers operate and improving the customer experience. Here are some of the ways that touchless claim processing is impacting the insurance industry:

1. Improved Efficiency: Touchless claim processing has significantly improved the efficiency of the claims process, reducing the time it takes to process a claim and minimizing the need for manual intervention. This increased efficiency has enabled insurers to handle larger volumes of claims while reducing their overhead costs.
2. Reduced Fraud: One of the most significant benefits of touchless claim processing is its ability to identify and prevent fraudulent claims. By analyze claims data, insurers can detect patterns and anomalies that may indicate fraud and prevent fraudulent claims from being paid out.
3. Better Customer Experience: The automation of the claims process through touchless claim processing has resulted in a better customer experience. With faster claims processing and improved accuracy, policyholders can receive their payouts more quickly and with fewer errors. This improved experience can lead to increased customer satisfaction and loyalty.
4. Increased Competitiveness: The use of touchless claim processing has enabled insurers to improve their bottom line by reducing overhead costs and improving efficiency. This increased competitiveness has allowed insurers to offer better rates and more competitive policies, attracting more customers and improving their market position.
5. Enhanced Fraud Detection: Touchless claims processing can improve fraud detection by using advanced technologies such as AI and ML to detect fraudulent claims. Since touchless claims processing relies on digital data and automated technologies, it is easier to detect anomalies and patterns that suggest fraudulent activity.

Implementation Challenges

Touchless claim processing represents a significant opportunity for insurers to improve the efficiency, accuracy, and customer experience of the claims process. By automating the entire claims process, insurers can reduce the time it takes to process a claim, minimize the risk of errors and fraud, and improve the overall customer experience.?While touchless claim processing offers significant benefits, there are also some challenges that insurers must address to ensure its success.?These challenges include:

1. Data quality: Touchless claims processing relies on accurate and high-quality data. If the data is incomplete, inaccurate, or outdated, the automated claims processing system may not be able to make accurate decisions.
2. Integration: Implementing touchless claims processing requires integrating multiple systems and technologies. This can be complex and challenging, especially if legacy systems are involved.
3. Regulatory compliance: Touchless claims processing must comply with a range of regulatory requirements, including data privacy laws and regulations related to claims processing.
4. Customer adoption: Touchless claims processing may be new to customers, and they may be hesitant to adopt these new technologies. This may require insurers to invest in education and marketing to encourage customers to use touchless claims processing.
5. Security: Touchless claims processing involves sensitive customer data, and there is a risk of data breaches and cyber-attacks. Insurers must invest in robust cybersecurity measures to protect customer data.?

Touchless claims processing has the potential to revolutionize the insurance industry by improving the speed and accuracy of claims processing, reducing costs, and improving the overall customer experience. By leveraging the latest technologies, such as AI and ML, OCR, chatbots, blockchain, telematics, image recognition, data analytics, digital signatures, RPA, and mobile apps, insurers can create a fully automated claims processing system that requires little or no manual intervention. However, there are several challenges that must be overcome to implement these technologies effectively, including data quality, integration, regulatory compliance, customer adoption, and security. Ultimately, insurers may choose to adopt either touchless claims processing, right touch claims processing, or a combination of both, depending on the specific requirements of claims management process and the desired customer experience. Insurers that can successfully navigate these challenges are likely to reap significant benefits in terms of improved efficiency, reduced costs, and increased customer satisfaction.