Automation is everywhere, with companies looking to simplify processes, make automated decisions and improve customer journeys.
Within insurance, there are opportunities for automation, but claims are often considered one of the relatively easier processes to focus on.
Here's why:
Structured Data: Insurance claims involve a substantial amount of structured data, such as policy details, dates, and amounts. Automation systems excel at handling structured data efficiently and accurately.
Repetitive Tasks: Many aspects of claims processing involve repetitive tasks, such as data entry, document verification, and calculations. Automation can handle these tasks quickly, without getting tired and without errors.
Rule-Based Processes: Insurance claims often follow a predefined set of rules and guidelines. Automation can be programmed to follow these rules exactly and consistently, reducing the likelihood of human errors due to oversight or misunderstandings.
Faster Processing: Automation can work around the clock, processing claims without breaks, leading to faster turnaround times for claimants.
Cost Efficiency: By automating claims processes, insurance companies can reduce labour costs and allocate human resources to more complex and value-added tasks.
Data Integration: Automation systems can seamlessly integrate with various databases, systems, and software, ensuring accurate and timely data retrieval and sharing.
Standardisation: Automation ensures claims are handled in the same way, enforcing standardised procedures, minimising mistakes and variations, ensuring fairness and improving compliance.
Scalability: As the volume of claims fluctuates, automation can easily scale up or down to accommodate the workload, without the need to adjust headcount.
Enhanced Accuracy: Automation reduces the chances of errors caused by manual data entry or processing, leading to more accurate claims assessments and payouts.
Customer Experience: Faster and more efficient claims processing through automation can lead to improved customer satisfaction.
This is something we are already seeing in play (Lemonade recently made the headlines for settling one claim in 2 seconds or something blink of an eye crazy!). It is however, important to note that while insurance claims processing can be relatively easier to automate, it doesn't mean that the entire process can be fully automated.
Some claims are really complicated or involve complex circumstances requiring human intervention and decision making.
Automation is most effective when it is combined with human oversight, especially in situations that require empathy, decision-making based on nuanced information, or handling exceptional cases.
There’s a lot more to come in the world of automation, so watch this space!
Gerrard White is the leading specialist in Technology and Insurance recruitment. Working with some of the most innovative Insurance, Insurtech and Claims providers we are well placed to attract and recruit the very best talent to help them deliver technology and automation enhancements across the company.
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