Insurance may be viewed by outsiders as an old fashioned, even boring industry – but those on the inside know that it is one, particularly in recent times, that is constantly evolving.
For proof look no further than the auto claims sector. This year alone we’ve seen the impact of the personal injury discount rate review, whiplash reforms and yet another Insurance Premium Tax hike impact premiums – while technology appears to be looming ominously in the background with the potential for driverless cars to not only evolve auto insurance, but completely revolutionise it.
With that in mind, a recent study has attempted to shed some light on the future, with LexisNexis Risk Solutions offering its The Future of Claims: Touchless Claims Study. It found that, among other points, while some insurers still favour traditional claims processes there is an ever increasing demand for reduced expenses, increased customer satisfaction and faster cycle times – and even a migration from virtual to touchless claims.
The study included interviews with 24 senior level insurance executives and found that 79% saw increasing auto claims automation as a top priority.
Want the latest insurance industry news first? Sign up for our completely free newsletter service now.
“As technology, coupled with data and analytics, has powered the claims evolution from traditional to fast track, and most recently to virtual handling, we wanted to look ahead to better understand the future of claims handling,” said Bill Brower, vice president, claims, LexisNexis Risk Solutions. “Due to adoption barriers, we recognize this is not something that is going to happen overnight, however, we feel that current technology, coupled with data and analytics, positions the industry to adopt touchless handling as the future of non-complex auto claims.”
So what does touchless handling involve?
Brower outlined that as tech-savvy millennials move towards self-service options, mobile claims reporting will expand with self-service claims also increasing. It is also predicted that self-service for claims adjudication will be led by larger, standard insurance companies with resources to invest in technology and who will benefit to a greater degree from process efficiencies because of their large claims volume.
As for the insurance broker, LexisNexis outlines there will be benefits for those who “focus efforts on improving the personalized customer experience.” Effectively therefore, brokers can offer an individualized alternative in an increasingly automated world.
Here indeed, lies the key regardless of where a company or broker may be positioned on the claims spectrum.
“The trend towards virtual – and eventually touchless – claims is inevitable, but should be approached with the customer experience in mind,” the study explains.
It seems the industry is moving towards automated claims one way or the other – and there is a vital need for insurers and brokers to embrace these technology enabled solutions as fast as possible to ensure they yield benefits not only for customers, but for those providing insurance too.
Related stories:
Insurance and the future of mobility: learning to shift gears
The future of insurtech: Will insurance have an Uber moment?
