Last weekend, we had the opportunity to participate in an InsureTech Hackaton – thanks @sbcInsurTech for the sound organisation!
It was interesting to see how the teams approached the challenge of creating a better claims process and experience. Most of them managed to produce actual prototypes with the given 48 hours – in some cases, quite impressive ones!
So what does “better” mean in the context of claims processes?
Claims are an essential to insurances, presenting the most significant cost factor typically. Reducing claim amounts and frequency was left aside – predominantly, the teams focused on improving the customer experience of filing a claim (FNOL), fraud prevention/detection or process optimisation for the insurer. Why? For the customer to reduce friction and churn triggers combined with an overall shortening of the claims processing time. For the insurer, the main benefits centre around improved data quality of claims, a higher degree of fully automated claims processing and smarter detection of fraudulent cases.
Main ingredients applied:
- context information collected by smartphones
- sentiment analysis of text and voice
- converged media evidence (text, voice, photos, video)
- multichannel communication
- user experience elements from Facebook, Snapchat and the like
The good news is that (1) technology to improve the claims process is available, (2) it can be rapidly applied (remember: 48 hours!) for trial-ready implementations and (3) high tech services for sentiment analysis etc. are availabl off-the-shelf to jump start improvement initiatives.
One pitch we found disruptive from a business perspective: The proposal is to accepted or rejected all claims automatically – only if one party weren’t satisfied with the result, the typical claims process would be initiated. We find that is an exciting idea and it could be combined with other proposals as described above. However, the assumption that insurance customers would be installing and authorising an insurer’s app on their smartphone (and keeping it with them always) remained unchallenged.
We are looking forward to seeing some of these advancements applied – it’s time, insurers!