Part 2 – You CAN reduce your claims expenses and improve the customer experience.
As an extension of my last post, Part 1 – your claims process is customer driven, in this post I will share how you can reduce your claims expenses and improve customer experience. In a recent article in A.M. Best’s Journal, they shared a survey that indicated the top two claims areas that needed technology improvement are:
1. Improving the customer (and agent) experience
2. Legacy administration and claims systems
Reducing the claims expenses of a company does not have to equate to diminished customer experience. And conversely, increasing customer service or experience does not mean you need to increase expenses by adding human capital in the company. I have learned that a happy medium does exist.
Here are some questions and thoughts to keep in mind as you and your team evaluate ways to reduce claims expenses while maintaining or increasing customer experience:
Does your company have a proactive or reactive digital strategy?
- Digital strategy and digital capabilities are not one in the same. I believe digital channels and experiences are going to change the insurance industry. You must meet your customers where they are and where they want to meet – because if you don’t, someone else will. If your customers are utilizing mobile technology, then you need a way for your customers to process claims on their mobile devices, from start to finish. Have you ever started a process on your mobile device only to go down a path that leads to – “We apologize, that function is not available on our mobile app, please go to www dot…” (You get the point). It is frustrating to say the least.
InsurTech. Does your company just talk about it or do you actively engage in it?
- Talking about InsurTech and actively engaging are two different topics of discussion. Here is what I have learned in building businesses. A business is always in one of four phases at a given time. Are you – 1) innovating, 2) pivoting, 3) growing or 4) dying? Ask yourself, which category are we currently in? Hopefully it isn’t the last category. InsurTech can help your company with the first three categories. However, you must be engaged and committed to the process. This means reaching out to the InsurTech companies and taking a new approach by working with them. You may be pleasantly surprised by what they can offer you, your team, your company, your customers, and your bottom line.
Are your legacy systems preventing or hindering innovation?
- Let’s discuss item number two of the A.M. Best’s survey results. I can tell you from experience, when I inquire about legacy systems at life insurance companies, I hear a dreaded sigh.
Here are the facts: your legacy systems exist and are currently a necessary part of the business; they will probably get phased out, transitioned and/or updated; and finally, this process is going to be expensive. But does it have to be? What if an InsurTech provider recognized this issue as a barrier to entry for their product or offering and decided to tackle the legacy issue head on? What if they could connect to your legacy systems, complete the claims processing functions while surprising and delighting your customers? What if they could accomplish this with minimal resources and at a reasonable price? At Benekiva, we have a solution to do just that. Visit us online at www.benekiva.com
My point is there are many ways your company can be innovative. If you start to have an open mind and explore some of the InsurTech companies out there, you may just discover the innovation your business needs. Stay tuned for Part 3 of this article to learn how your claims process can become a revenue driver. Referenced A.M. Best’s Journal – Feb, 26th 2018 – Volume 5 Issue 2.