Insurtech Disrupts Claims – Where Technology Meets People-Oriented

Claims settlement is perhaps the most critical criterion for any customer when choosing an insurer. However, complaints have always been an agony for customers, as the settlement of complaints is always shrouded in opacity. Customers look forward to a simple and seamless claims experience. InsurTechs have been able to meet this challenge, for the most part. With the changing InsurTech landscape in India and its corresponding technological innovation, claims are now much less burdensome than before.

Through the effective use of technology, InsurTechs have automated several claims processes, resulting in faster turnaround time and increased efficiency. Large volumes of claims are now processed at a much faster rate. For example, WhatsApp is now used to share claim-related documents and other information, which has made the process efficient and reduced initial document verification time.

The impact of technology on the entire insurance industry and especially on claims is such that we are witnessing several use cases of high accuracy and proficiency every day. This leads to an important question – in this technological disruption caused by InsurTechs, is there a role of people centrality?

We may live in an automated world, but nothing can replace human contact. Technology is undeniably important too, but when it comes to insurance, it wouldn’t be wrong to say that technology is the brains while customer service is the heart. It is this interplay between superior technology and customer focus that makes InsurTechs better positioned to drive change in Indian insurance.

The next critical question is how do you foster people-centricity in the age of automation? According to Harvard research, the biggest barrier to customer centricity is the lack of a customer-focused organizational culture. As the insurance industry grows, today’s customers are more aware, educated and demanding. In the new era, for insurance, it is essential to follow the relationships with the customers as much as to achieve the goals and objectives of the company.

Add the human touch

The main difference between a machine and a human is emotion. Technology falls flat if human intervention is completely erased. Having a sensitive side, insurance must include human contact to soothe someone in distress. In an emergency where emotions are running high, you need human assistance to help you through a crisis. In such life and death scenarios, human contact reigns supreme. In an article, Deloitte credits insurance professionals in the United States with saying that while automation can reduce overall time and expense, it doesn’t necessarily mean companies need to end customer interaction, which is an essential element to add to the overall experience, especially in an emergency.

How can InsurTechs strike a balance?

A study suggests that nearly 79% of customers prefer talking to insurance specialists over bots. Moreover, in insurance where trust and time are equally critical, people show more sensitivity, compassion and empathy. InsurTechs should therefore invest in setting up a 24/7 customer service to meet the human needs of their customers, especially those in distress. Customer service staff must stay in touch with customers from the minute of hospitalization, in case of cashless claims, and until the last mile when money is deposited in the bank for refunds.

There is no substitute for a comforting human voice that could guide customers through the various claim details such as in-network hospitals, exclusions, etc. during anxious times. A calm, composed human voice that brings assurance is all a client asks for.

Net Promoter Score

Net Promoter Score (NPS) measures customer experience and predicts business growth. It is a customer satisfaction and service quality indicator that is determined by a single question asked of customers – how likely they are to recommend a brand to their known circles. A low NPS means high detractors and a high NPS indicates that an increasing number of customers are promoters. Bain & Company, the creators of NPS, states that a good NPS score of 0 and above is classified as excellent and above 80 is world class.

One of the global insurance giants, Allianz, has an overall NPS of 79, a unique feat in the insurance industry. The Allianz success story is a perfect example of an interplay between technology and customer-centric culture that has ensured excellent customer service year after year. Drawing inspiration from the Allianz NPS case study, it can be said with certainty that a high NPS in the claims journey cannot be purely a numerical factor and requires trust, intuition and a human touch. It is imperative for InsurTechs to introduce NPS metric in complaints and also for customer service teams to engage with their customers with empathy and compassion and support them through their complaints journey equally against winds and tides.

Conclusion

InsurTechs have clearly demonstrated better technology integration which has made insuring and claims settlement much simpler for many. By fusing customer centricity as a centerpiece of their business model, strategy and corporate culture with technology, they can create a far greater impact on all aspects of insurance, including claims. disasters. This will help establish a long-term relationship with the customer.

(By Debankur Biswas, Customer Success Manager, Plum)

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