The insurer who embraces the latest technologies and is willing to go the extra mile will stand out in a competitive market and win. However, not every company operates in the same way, and the solutions to the challenges cannot be the same.
Fremont, CA: Every year, insurers worldwide face new challenges that make it more difficult to achieve a healthy bottom line while maintaining high levels of customer satisfaction. Internet-of-Things (IoT), Machine Learning (ML), Robotic Process Automation (RPA), and Drones have opened new avenues for collecting real-time data, better-predicting future events, accessing hazardous regions without jeopardizing human lives, and expediting response time, resulting in improved customer experience and better business outcomes.
The insurer who embraces the latest technologies and is willing to go the extra mile will stand out in a competitive market and win. However, because not every company operates in the same way, the solutions to the challenges cannot be the same and will differ depending on the specific operating model in place. All insurers want to increase revenue while decreasing costs. They must embrace new ways of doing business and adopt innovative technologies.
Here are four ways technology can reshape insurance claims processing:
Virtual Personal Assistants
Users can communicate with virtual assistant technologies such as Google Home or Amazon Echo to request the completion of tasks such as making online service reservations, making phone calls, and so on. With a customized configuration, such devices can send alerts of situations that may result in a loss.
By using machine learning to estimate claims reserves, the periodicity can be decreased to a point where it is close to real-time estimation, allowing for better estimation reporting and a reduction in time spent on data preparation for reporting. Because machine learning is heavily reliant on learning from previous decisions, it is possible to account for factors such as inflation, changes in actual claim settlement amounts, changes in claim data due to major economic events, and even changes in the company's quantitative philosophy for maintaining adjustments.
Internet of Things (IoT)
Smart devices in your daily life can communicate with one another and share useful information. This information, if shared between the insured and the insurer, has the potential to improve performance in a variety of areas, from quick and easy claim notification to providing exceptional customer service.
Robotic Process Automation
In many ways, robotic process automation (RPA) can improve claims processing. It enables the execution of rule-based, repetitive, and frequent transactional and administrative tasks. This is consistent with insurance companies' desire to improve operational efficiencies in back-office operations such as claims processing, data entry, and policy application handling. RPA can be used to streamline routine processes.