Connected Claims – The Future of Claims

The global pandemic that shook the world early in 2020 has changed everything, including the way we live and the business of insurance is no different. While the pandemic forced people to rethink their priorities, insurance companies have been facing their own set of demons, most of which lies in the claims functionality.

Few kinds of claims – personal and auto have seen a decrease considering travel of any kind has come to a near standstill.  The industry leaders began thinking on their feet and took this as an opportunity to redefine the business model and focus on enhancing the claims process. Working from home has become the new norm, face to face meetings have become virtual meetings, and so insurers began relying on the self-service model and AI to increase the efficiency of claims processes. Mobile and web apps, Digital claims payments have gained momentum since paper-based processing is no longer an option, and customers are demanding faster action and settlement.  

An insurance company’s ‘moment of truth’ arrives when their claims process is streamlined and offers a good customer experience. If you were to do a survey among a group of insurance policyholders, most would have something to say about the claims – the delays, or hiccups along the way, proving that claims processing and settlement are a crucial functionality in the insurance journey.  Most insurers are looking for solutions that will ease and speed up the process, and help integrate the AI and ML capabilities within the processes.  

What are Connected Claims?

One feature that will help deliver omnichannel, seamless, and personalized claims experience would be through ‘Connected’ claims. Bringing about transformation in Claims is not just about reorganising that one department.  

Claims have the potential to disrupt the entire business in its entirety, therefore it is essential for insurers to understand how to create a connected ecosystem within claims. In the last few months, we have been witnessing a shift towards Automation and AI-based solutions. The data gathered from the customers, the IT processes and analytic solutions have all been undergoing a transformation, integrating with the overall systems and acting as the driving force behind the strategy based changes.  

For example, when the sensors in a vehicle observe there is a leakage in the brake oil, the insurance company can immediately search for the nearest garage that can fix the issue, and reach out to the customer alerting them of the same and sharing information that will help them get the issue sorted at quickly. If a part has to be ordered, the process is initiated and thereby it lowers the risk of accidents or damage to the vehicle and the person. Another example would be the sensors in a company-owned car providing data on the impact and speed when encountering an accident or collision. The insurers can combine this information with the video footage from the CCTV cameras and determine the source, and the person responsible for the same. Subsequently, insurers can use advanced analytics, repair updates and offer claims related support.  

How can insurers stay ahead of the game?

Insurers today are looming to create differentiating factors that will help them stand out from the competition. This is done by reimagining the claims journey, starting by focussing on dedicating resources towards claim prevention as against the traditional claims handling systems. With  Telematics capabilities in place [connected devices, homes and auto – using health trackers, smart devices, wearable sensors and behaviour monitoring devices across elements], insurers can create a system that will send alerts and notifications to customers before a mishap occurs, thereby curbing the losses.   

It’s all about providing more visibility and better communication. Our philosophy of always putting the customer at the centre of the claims process is the foundation that creates the connected claim experience. And although we use leading-edge technology that is unique in the industry, if it’s not based on a solid foundation of a customer-first approach, we would simply be the same as everybody else.

The entire claims ecosystem evolved, and some of the key features are,

1. Relying on third-party infrastructures- such as CCTVs from the street/location & camera.
2. Telematics – connected wearables, native sensors [all sensors  built into wearable devices, cars, and other machines including workout gear) will provide insurers insight into customer’s behaviour and lifestyle. The data can be used to compute premiums, discounts, and alerts ahead of accidents/mishaps.
3. Visual proof – Photos and videos provided by the customer will help gain insights using the predictive analytics tools that are integrated into the system. 
4. Personalised products – Insurers will be in a better position to offer personalised products to customers, increasing the trust and engagement further. 
5. Fraud detection- AI and ML capabilities will increase the accuracy of claims submitted, with rapid authentication of the policy application. Customers benefit by using the one-stop solution for all their claims related activities and track updates in real-time.

There is a constant rise in the digital solutions available to ensure high levels of customer experience is offered. With smart homes, connected wearables, autos, data and customers has become the backbone of connected claims, subsequently leading to better sales and growth for the business. We have covered a few aspects related to Claims in our earlier blogs – Robotics in claims and Neutrinos claims submission solutions. 

With the implementation of cutting edge innovation that is possible through telematics, Neutrinos sees connected claims emerging as the single most effective driving force in improving the bottom line for insurers and rewarding safe drivers while at the same time irrevocably and positively revolutionizing both the claims process as well as the claims experience.