The insurance market, like most markets at the moment, is competitive and economically challenging. The majority of insurers are looking for an edge. But how many of them consider claims management as a market differentiator? Do many insurers even think of claims management when looking for a way to get ahead of the competition?

Look at the five stages of an insurance claim. Each has the potential to offer the improvements in efficiency and customer experience that we have all come to expect from the digital world.

  1. First Notification of Loss (FNOL)
    What if you could offer your customers flexible communication? Via phone, email or via web portals or mobile web forms?
  2. Validation
    How is your claim handling powered? Smart workflow processes that include automated routing of claims based on location, skill, or type of claim? Do you have business-configurable rules that enable you to ensure that policy benefits and limits (including claim handling limits) are enforced consistently?
  3. Reserving
    Is your claims reserving always consistent, timely and accurate? For example, as well as manual reserving, do your systems enable you to set up automated reserves based on criteria that you define? Can you automatically allocate a reserve amount based on the claim limit, or the claim amount, or assessment criteria such as medical condition?
  4. Payment
    Does your system include integrated payment management? Does it support multiple payment methods, automatic validation against agreed fees, and recurring payment processing? Does it help you to expedite the payment of agreed amounts to both providers and claimants? Can it help you to ensure that you’re not making payments when you shouldn’t?
  5. Recovery
    Could you increase efficiency and have more robust audit processes in place? Do you have the recovery management system that you want? One with not only the ability to recover amounts, such as the cost of repair from a Third Party Insurer, but also with the flexibility to record and manage estimated recoveries – with automatic reduction of estimated recovery amounts on partial recovery.

Just imagine for a moment, if you could innovate the way that you manage claims, is it possible that you could reduce costs dramatically? What if you could deliver significant improvements to the customer experience at the same time as reducing costs? Would claims management start to look like a market differentiator then?