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Improving Claims Processing – Why Does the Insurance Industry Need It?

Reason # 1 – Increase Profit by Providing Better Customer Experience and Satisfaction

With changing times, customers’ needs also evolve. Not only do the customers search for new insurance products, but they also look for new, better experiences with their insurance companies. These days, the customer’s loyalty directly depends on excellent customer service provided on the consistent basis.  Sadly, the basic thing that customers expect from their insurers – open communication – is often unachievable. Another thing that is very desirable for customers is mobility and speed.  Not surprisingly, the claims are in the center of those needs and the way how each claim is handled can make or break the relationship with the insurer.

Increase profits by improving payment processes.

 

The main problem causing insurance companies to struggle with providing that great experience is complexity and age of the system infrastructure. Many companies use a vast number of incompatible systems which makes accessing the right information at the right time very difficult. This in turn slows down the entire process and impairs the communication with the customer often leaving him frustrated, disoriented or even ignored.

 

Another reason prohibiting claims agents from delivering the best experience to customers is cumbersome approval process. With multiple manual stages of getting a claim approved, an insured often has to wait for several weeks before receiving the payment. In situations like natural disasters where a claimant lost everything, such a long wait is unacceptable. PointPay is a solution allowing an adjustor to process the claim on the spot, get it approved and print a check right away. This mobile solution can be used even if there is a disruption in internet connection which makes it very efficient and perfect for handling disaster claims in particular.

 

Reason # 2 – Increase the Bottom Line by Lowering Operating Costs

 

Improving customer satisfaction in order to positively affect the bottom line is only one reason for changing the way how claims are processed. In addition, insurers have to balance it with lowering their operating costs. Because insurance companies often use inefficient legacy systems that individually can support only a certain set of products, customers or channels, losing money is not uncommon.   Waste of time, work duplication, poor decision making and governance/compliance issues are the most noticeable and serious problems that stem from using those silo-based systems.

 

Taking into consideration the age of systems in use, replacing the entire infrastructure sounds like a good idea. The major problem with it is its cost – according to Accenture, the companies that have decided to make this investment will spend this year on average $17.5 million on claims systems only.

 

An alternate solution to replacing the legacy systems is to extend life of those systems already in place.   For a fraction of the replacement cost, PayPilot solution provides with tools enabling elimination of aforementioned inefficiencies through better data accessibility and its oversight and thus facilitates achieving higher quality of services, increased customer satisfaction and reduction of operational costs.  PayPilot serves as a payment management hub that allows centralizing siloed disbursement processing from existing systems. The solution seamlessly integrates with the source systems to provide automated, straight-through processing and a single repository for all payment related information.

 

Learn more about Prelude Software solutions. Talk to our Subject Matter Expert and find out which solutions are right for you.

 

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Tags: payment disbursement hub, insurance claims processing, claims processing improvement, increase customer satisfaction in insurance indust, lower cost of processing claims, reduce cost of processing claims, insurance industry trends, PayPilot, problems insurance industry faces, mobile insurance solutions, PointPay

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