Handling and paying out claims represents a vital interaction between insurers and their policyholders. It is the moment of truth that will tell customers whether their insurer delivers against their expectations. If something goes wrong or the claims process is too cumbersome and lengthy, customers will be unsatisfied and are highly likely to change insurers upon renewal. In fact, according to an Accenture study, nearly 30% of the respondents who reported dissatisfaction with the way their claim was handled, said they had switched or planned to switch to another insurer. Even worse, they may share their unsatisfactory experience with friends and family, or on social media.
Despite the massive increase in payment and insurer solutions, there are many opportunities that can still be considered when it comes to improving the claims experience. Changing what has been working for the past decades is challenging. Insurers are grappling with increasing customer demand for better claims experiences whilst working with complex, legacy systems that are not compatible with new solutions. The opportunities are there for insurers to optimize their processes and gain or regain their customers’ trust. Failure to adapt to the digital world will prove devastating, especially when there is so much competition and new players in the game. The risks of not changing are too significant to ignore. Insurers have the added pressure to perform both when collecting money and when paying out, and both of these touchpoints are crucial in the customer journey.
Customers want speed and efficiency from when they file a claim to when the payment is processed. The claims process should be simple, easy to follow, efficient, and quick. Complex procedures that require much paperwork to be reviewed and signed, painful waiting times, and unclear guidance aren’t going to satisfy today’s customers. According to a Swiss Re study, lack of empathy, trust, and social influence also play a role in making claims experiences negative. Having a look at industries such as eCommerce, we can see the level of personalisation, speed, and ease that customers want.
That is now the goal of companies in any industry. While there might be a few factors holding insurers back, particularly their traditional systems, the insurance industry needs to align with other sectors as soon as possible. As an Insurtech, Imburse works with insurers to optimise and future-proof their payments systems, while also providing continuous expertise and technical support to enable insurers to navigate the complexity of the payments world.
These are the most critical factors, and they can only be achieved with technology investments to optimize processes (McKinsey report). Aside from these, hyper-personalization is also becoming increasingly relevant. Each product, service, or experience should be tailored to each customer’s needs. Not only will they get the right solution for their needs, but they will also have the sense that the insurer cares for them and values them as customers.
“At its core, insurance is a standardized product. Unlike the potentially inconsistent intuition of a human agent, the insurance engine can use advanced analytics to parse vast amounts of existing data to deduce what individual consumers need. With permission and subject to appropriate privacy and data protection guidelines, the insurance engine can also consider the customer’s unique characteristics, such as web history and device usage,” says Uwe Stuhldreier, an executive at HUK24, Germany’s largest fully digital direct insurer.
Feeling appreciated is essential when various other insurers are trying to invest in getting customers’ trust or converting your customers. Personalisation is only possible through technology, but it can take the form of various features, such as providing customers with the right policy to suit their needs via a quick online questionnaire or ensuring that customers’ favourite payment methods are available when paying out.
Delivering excellent customer support and guidance through the claims process is crucial, especially if a policyholder is filing a claim for the first time. Stir away from the complexity involved in the process and make sure you are providing customers with the right tools at all times, along with continuous staff support. We often see this in websites’ live chats, where customers can quickly speak with agents and get their questions answered. It doesn’t apply only to eCommerce but to insurance too.
The complexity of claims handling may be more costly than you thought. According to an American Medical Association (AMA) report, health insurers waste $17 billion every day due to errors in claims processing. But there is good news: digitalising the claims process can reduce claims expenses by 25-30%, as well as improve claims accuracy by reducing overpayments and underpayments (McKinsey report).
The best way to payout claims quickly and efficiently while also saving money is to invest in a platform that opens up the payments world for you. Take Imburse as an example. Imburse enables insurers to payout using any payment provider or technology available in any market. Not only will you be able to access any provider, but you can also change or add providers whenever needed, based on your business needs or customers’ changing preferences.
Payments are one of the most critical moments in the claims process. If customers receive an excellent payment experience that meets their individual needs, they will have a more positive view of the company and are more likely to renew their policy with you when that time comes. Receiving an excellent payment experience often comes down to how easy and quick it is to receive the money and which channels insurers use. Push-to-cards, bank transfers, vouchers, or alternative payment methods such as virtual cards or digital wallets are all viable options that you can offer instantly once connected to Imburse.
Pay-By-Link makes it easier and faster to pay and get paid. You can generate a link that is then shared with your customers via email or SMS. Once customers click on it, they are directed to a fully customisable and secure online hosted page. For premium collections, customers simply add their payment details and for claims payouts, they select their preferred payout method. and are able to insert their payment details and complete the payment in just a few minutes. Pay-By-Link reduces drop-off rates by making payment experiences as simple as they get. Check our Pay-By-Link page to learn more about this solution and its benefits.
A willingness to embrace change is the first step in optimising your claims payouts (EY report). Any change can be daunting, but there are many great opportunities to take advantage of. There are many solutions out there that enable insurers to navigate the payments world more easily. Finding the right solution and ensuring you gain both access to technology and the payment expertise necessary to make the right decisions for your business is essential. You can start small with lower-risk processes such as automating claims processes and adding chatbots to your app, ensuring that your customers are being taken care of 24/7. Navigating the Insurtech world and getting in touch with solution providers like Imburse can also open up a whole new realm of possibilities. Moreover, InsurTechs can provide you with excellent technical support that will make you more confident in driving change within your business.
Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using various payment technologies and providers around the globe.
In a world where consumers’ payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or needs, Imburse will connect you to your choice of technology and provider.
Reach out to our team should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.