In an industry built on the promise to be there in moments that matter, every touchpoint tells a story, especially in the claims process. Imagine a family member—perhaps a spouse or child—receiving word that their loved one’s life insurance claim will take weeks, or even months, to process. In an age where a dinner can be delivered in minutes, these delays feel not just inconvenient but deeply impersonal. It’s in these moments that trust is tested and future relationships are made—or broken.
Today’s consumers have been shaped by an era of immediacy. Insurance, however, is still catching up, bound by legacy systems and manual processes that slow claims to a crawl. And this delay, unfortunately, costs carriers dearly. Research from PwC reveals that those who embrace digital claims solutions can reduce handling costs by as much as 30%, and dramatically improve customer satisfaction through quicker, more efficient service.1 But for carriers stuck in a proverbial “freeze mode”—unable to access critical data or leverage inaccessible information—these improvements can feel like a distant reality.
The Economic Toll of Freeze Mode
Freeze mode isn’t just a pause on progress; it’s an operational bottleneck with real financial consequences. Carriers who can’t access or streamline their data face inflated costs as backlogs pile up and inefficiencies compound. Celent research shows that automation and data accessibility can reduce manual interventions by up to 80%, creating valuable time and cost savings.2 For carriers stuck in freeze mode, these are missed opportunities. And in an industry where every delayed claim is a test of trust, it’s a cost few can afford.
Even more concerning, delays in the claims process often mean policyholders’ families—the beneficiaries—are left waiting. Swiss Re found that a beneficiary who encounters delays or friction during a claim is significantly less likely to ever do business with that insurer, even if their loved one was a loyal policyholder.3 These are lost opportunities for long-term growth, and they represent a profound misalignment with the very purpose of insurance: to serve in times of need.
Start Where You Are: Laying the Digital Foundation
At Benekiva, we encourage insurers to start where they are. Transformation doesn’t have to be an overhaul; it can begin with digitizing basic processes like First Notice of Loss (FNOL). This could mean implementing AI-driven document readers to accelerate information gathering or enabling digital document uploads for claimants. Starting with these foundational moves allows carriers to experience immediate benefits while setting up a digital infrastructure that will support more complex initiatives down the line.
From Freeze Mode to Future Mode with Captive AI and Humanomation
Once carriers establish a digital foundation, they can then consider the potential of captive AI—an approach where proprietary data fuels AI-driven insights and precision. By implementing rules-based workflows, insurers can optimize claims handling with efficiency and accuracy while keeping control over sensitive information. But technology alone isn’t the answer. For truly effective claims handling, there must be room for the human touch.
This is where “Humanomation” comes into play, blending human support with automated processes to give beneficiaries options. For straightforward claims, digital self-service might be perfect, allowing claims to be processed swiftly and with minimal fuss. But for complex or sensitive cases, Humanomation provides claimants the choice to interact with a real person, ensuring they feel seen and supported.
The Long-Term Benefits of a Beneficiary-Centered Claims Experience
When beneficiaries experience a seamless, empathetic claims process, it leaves a lasting impression. It shows that the insurer values them and recognizes their unique needs. And these positive experiences can create a legacy of loyalty, where beneficiaries are far more likely to consider that carrier for their own insurance needs, or for the needs of their families.
In these moments, insurers have the chance to build lasting relationships—relationships that go beyond a single claim to form the foundation of a lifetime connection. Carriers that embrace this approach position themselves not just as insurance providers but as trusted partners.
For carriers ready to reimagine the claims experience, Benekiva is here to support the journey, whether it’s beginning with FNOL digitization or implementing a full digital ecosystem that maximizes speed, accuracy, and customer satisfaction: contact@benekiva.com.
Sources:
- PwC, Challenges Facing Personal Lines of Insurance (pwc.com)
- Celent, Robotic Process Automation in Insurance (celent.com)
- Swiss Re, Reinsurance and Insurance Trends in Claims Processing
Brent Williams
Benekiva Founder and CEO
