Category: Claim Reporting

How to Simplify Your Claims Processes to Improve Growth

Posted on

March 9th, 2020

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Filing an insurance claim is often a frustrating time for customers as they’ve likely experienced a loss. A claims process that is difficult or slow to produce results can further those aggravations and can cause customers to look elsewhere for their insurance coverage. There are a lot of factors that contribute to customer loyalty, and the claims experience tops that list.

Technology Band-Aids No Longer Bridging the Gap

Customer Pain Points

Insurance providers know that customers expect a mobile application and an online portal to manage their bills, policies, and claims. However, simply developing an app is not enough. Many forms still require customers to download and print them out to complete. Then they have to scan and upload the document.

This process is time-consuming and no longer realistic. The setup of a desktop computer with a separate printer has faded into technology history as more people rely on laptops. The need to print things in general has decreased as more industries get on board with electronic documents and signatures. Add in the cost of buying a printer and ink, and owning a printer becomes costly and unnecessary.

Electronic forms still pose problems for customers as well as many aren’t responsive. If the customer happens to be home and have access to their laptop, they can fill out the form. If they attempt to do so on their phone or tablet, however, many begin to experience compatibility problems. In a high-tech world, these kinds of difficulties are unacceptable to most insured customers.

Insurance Provider Pain Points

Even when insurance providers offer forms, they often lack the ability to capture the information contained within it. This means they have to manually carry over the information the customer provided, which takes time and is prone to human error. Many forms also lack all of the details insurance adjusters need to process the claim so they end up contacting the customer to ask for the information again. This aggravates the customer as it comes across as redundant and delays the claim.

Switching from paper to a truly high-tech digital process can save insurance representatives’ and adjusters’ valuable time processing claims, expedite the claim for the customer, and improve customer satisfaction with the overall claims process. The experts at Actec understand what insurance providers need out of their claims handling processes. Contact us to learn how we can help improve your claims intake, FNOL, and more.

How to Harness FNOL to Improve Customer Satisfaction

Posted on

February 24th, 2020

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It costs insurance providers a lot more money to obtain new customers than it does to retain existing ones. That’s why improving customer satisfaction is an ongoing process for most insurance companies. However, customers aren’t going to care about great rates if their experience filing a claim is a disastrous one. When the claims process is more arduous than the event that triggered the claim in the first place, insurance providers will quickly discover they have a retention problem on their hands.

Whether a policyholder is calling to report the damage to their home, their vehicle, or some other covered item, first notice of loss (FNOL) represents the single greatest opportunity to influence customer satisfaction. Insurers that manage the stress of the claim right from the start can help customers feel at ease. Any claim that has a rocky start is unlikely to improve in the eyes of the customer so insurance providers need to make FNOL count.

How to Help Put Customers at Ease During FNOL

Customers filing a claim are likely to be in a turbulent frame of mind. Insurance representatives can help put customers at ease in the following ways:

  • Be empathetic to the customer’s situation
  • Answer all questions that customer may have
  • Provide a clear picture of the claims process
  • Be direct in how long the claim should take from FNOL to settlement
  • Provide information on the next steps to simplify the claims process for the customer

If an insurance company fails to put a customer’s mind at ease about the outcome of the claim, they’re unlikely to secure that customer’s loyalty.

One of the most challenging aspects is getting a handle on empathy. It’s easy to offer condolences following FNOL, but that does nothing to ease the situation for the customer. Reacting to the reality of poor customer satisfaction following claims, many insurers are overhauling their approach to FNOL. Some examples include helping arrange estimates or coordinating with contractors on the insured’s behalf.

Building loyalty is challenging in the insurance industry and FNOL is the key to getting started. Helping the insured customer feel secure throughout the claim process starts when they first report the loss. To learn more about improving your claims process, contact the experts at Actec.

4 Most Common Pain Points of Insurance Claims

Posted on

February 10th, 2020

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Payers and providers are often at odds when it comes to filing insurance claims. While payers want clean claims free of errors, providers want prompt payment. These aren’t always adversarial goals, but frustrations and errors can happen if a payer or provider is hasty while processing a claim. Errors can take a while to fix which costs both parties in resources and time as they rework the claim.

Of all the challenges providers have to navigate while processing claims, the following are the most headache inducing:

  1. No or slow information from the payer. Following any service, providers code the claim and submit it to their payer. However, waiting for an update can be a long process that leaves many providers wondering when or if they’ll receive payment. As a result, many providers follow up frequently, which takes up valuable time.
  2. Claim denials. While a denial at least lets providers know where they stand in the claims process, it’s not the update they were hoping to receive. The denial process is often murky as payers aren’t always clear on the reason why they denied the claim.
  3. Vague feedback. Continuing with the above point, payers return claims unpaid for a variety of reasons, but they always include a code as to why. However, these codes can be vague and frustrating for providers such as claim/service lacks information. Without any specification as to what is missing, providers have to hunt and guess for the reason.
  4. Rules are different for every payer. Even if the services that providers offer never vary from person to person, the method of coding differs among payers. This makes it challenging to navigate the claims process as one payer may consider a submitted claim clean while another may reject that same claim. Compounding the problem, rules change often with little notice, which can muddle claims as well.

Improving communication between payers and providers can help reduce rejected claims and expedite payment for services. However, submitting clean claims the first time around is also critical to saving time and reducing hassles. Implementing a full service claims management program can help achieve that goal. Contact the experts at Actec to learn more about improving claim management.

How to Improve the Customer Experience for Better Retention

Posted on

January 13th, 2020

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Individuals selecting their insurance providers tend to be choosy because they know they can afford to be. With so many providers on the market, these people have endless options to research and snaring them relies on a combination of offering products and features they want at a competitive price. However, maintaining their loyalty is a challenge as well. Focusing on maximizing the customer experience whenever they call to file a claim or seek more information about their coverage can go a long way to retaining existing clients.

Not only that, but it costs significantly more money to obtain a new customer than it does to keep existing clients happy. As such, it behooves insurers to put time and effort into boosting customer service. When customers are happy with how their provider does business, they’re more likely to stay with that company even when their insurance needs change.

The following are some of the more effective means of improving the customers’ experience while interacting with their insurance provider:

  1. Keep it simple. When customers have to go through several phone trees or navigate down numerous website menus, they’re going to become frustrated fast. Building websites so that they’re customer-centric can cut down on confusion and keep their business.
  2. Remove unnecessary steps. While some customers may want to browse or compare their options, some know upfront what they want. Offering a direct option for these individuals to receive quotes or purchase coverage removes unnecessary hassles and keeps those clients satisfied.
  3. Open up additional communication options. Sometimes, customers have basic questions about their policies or coverage that would be much simpler to answer via a chat or text system. This is also beneficial during periods of crisis when customers need to produce documents following an incident.
  4. Allow for customization. Every customer’s insurance needs will be different and a one-size-fits-all policy isn’t going to work well. For example, customers that own vintage cars may not need full coverage during the winter months if they put them away in storage. Allowing for flexible coverage that shifts with their needs provides value and instills customer loyalty.

From digitization to ease of use, insurers can take several steps to overhaul their approach to customer service. Contact the experts at Actec to learn more about improving customer satisfaction through effective claims management, first notice of loss, and more.

4 Key Elements that Improve Customer Claim Satisfaction

Posted on

December 30th, 2019

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If an insurance provider’s claim cycle is out of touch with modern expectations, they will struggle to keep up with their more tech-savvy competitors. Optimizing the claim cycle can boost customer satisfaction as well as improve their loyalty. Insurers looking to improve their claims cycle as a means to boost customer retention should focus on the following areas:

  1. Be proactive. Accidents happen and claims follow suit, but insurance providers can take steps to avoid costly, time-consuming claims. This means running risk profiles on clients to identify who is most likely to report a loss. Instead of waiting for a high-risk client to submit a claim, insurers can take steps to help them reduce their risks.
  2. Make the process customer-centric. Insurance companies used to make business decisions that met their own preferences first before considering their customers’ outlooks. This was often the case because operations could flow more smoothly with convenient structuring. However, what is helpful for the insurer may impede the customer. Insurance providers that wish to remain relevant need to take steps to provide personalized, transparent, and rapid services that make the process easier for customers.
  3. Provide swift responses. Identifying threats and opportunities early allows insurance providers to develop a rapid response plan. Anticipating customer’s needs and concerns can keep business operations flowing smoothly. For example, younger generations rely heavily on social media and online reviews of companies and their services. By using smart software or artificial intelligence, insurers can monitor social media posts that mention them in both a positive and negative light. This gives them the opportunity to engage to prove their superior service skills.
  4. Go digital. Mobile apps for insurance providers aren’t a new concept, but some insurers are taking technological advancements to the next level to give them an edge. Connected devices, data analytics, and the Internet of Things are transforming how the industry operates. The data gives insurance companies actionable insights to improve the customer experience as well as detect fraud sooner.

Customer expectations are ever increasing and insurers need to be ready to meet them or risk heightened customer turnover rates. If your existing claims process is struggling to keep up with customer demands, Actec can help. Contact us to learn more about our claims management solutions.

How to Improve Customer Satisfaction During a Claim

Posted on

December 2nd, 2019

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It’s common knowledge that first notice of loss (FNOL) represents the greatest opportunity to establish the insured’s satisfaction level. After this point, it is difficult to move the needle so it’s vital to ensure a smooth start to the claim. However, there are other factors at play when it comes to customer loyalty and retention.

How Millennials Are Changing Insurance Claims

It’s no surprise that millennials and other younger generations have a preference for technology when it comes to initiating and managing their claims. There is also a growing mentality that customers should be able to receive updates on their claim anywhere, at any time, in any way they so desire. This most often means having access to an online portal either through their smartphone, tablet, or computer.

In fact, when polled, 52% of auto claimants and 54% of homeowner claimants reported they would not recommend a provider that bars or lacks access to their preferred digital channel. Among customers that ranged between the ages of 18-24, that statistic jumped to 58% for both categories.

What makes this loss of recommendation so damaging is that younger generations rely on technology for research. If their peers are leaving negative reviews, it makes it very difficult for that insurer to appeal to them. Exemplifying the point, 41% of customers under 35 will post to social media and review sites about their negative experience compared to only 26% of customers aged 35-54 and 17% of customers 55 and older.

The Effect of Technology on Customer Expectations

The biggest challenge insurers are facing isn’t a shift in what their customers expect; it’s a change in where customers set the bar. Technology has allowed claims to move from FNOL to settlement faster than ever while granting customers unparalleled levels of access and control over the process. The pace isn’t likely to slow down anytime soon given the rate and sophistication of new tech and devices available on the market.

While every generation is growing more tech-savvy, there is no doubt that younger generations are driving the demand for transforming the claims process. Retaining customers lies in meeting these heightened expectations with a foolproof claims process. Contact the experts at Actec to learn about our custom solutions for your claim intake needs.

5 Simple Changes to Close Claims Faster

Posted on

November 18th, 2019

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It’s not uncommon to see job postings for insurance adjusters include desired skills such as fast worker or excellent multitasker. With so many boxes to check on any given claim, most adjusters believe they need to complete three tasks at once to stay on track. However, this approach often leads to time-consuming errors that can delay the claim. If adjusters take a single-task approach, they can usually complete their claims faster with fewer mistakes.

What is Singletasking?

Instead of trying to perform several tasks at once, adjusters tend to be more effective if they focus all their efforts on completing one task before starting another. Avoiding distractions is vital as it allows adjusters to seamlessly flow from one step to the next without losing track of where they were in the claims process or forgetting to complete a different task because they began a new one halfway through.

How to Speed Up the Claim Cycle

The following are several ways adjusters can remove distractions for flawless claims workflow:

  1. Turn off all devices that require active listening—no television, no radio, no podcasts or audiobooks, etc. While some tasks may be tedious, active listening distracts adjusters’ attention, which can lead to errors.
  2. Set office hours and stick to them. Otherwise, adjusters should turn off their phones and allow messages to go to voicemail. Stopping to answer the phone every 10-15 minutes can derail progress on a claim.
  3. Do not check emails. Emails are notorious for consuming the workday. Adjusters often start with good intentions—checking for updates and the like—but a five-minute once-over can turn into upward of an hour of clearing out spam or replying to emails out of habit rather than to advance any claims. Set specific times of day for checking emails to avoid the temptation.
  4. Perform work in batches. When following up on claims, stack them in a pile and work through them from top to bottom. Do not take calls or listen to other voicemails at that time. This creates confusion and can result in accidentally overlooking a claim. The same is true for emails or writing estimates.
  5. Put up “Do Not Disturb” signs. This is especially vital when traveling for claims. Housekeeping for hotels coming and going can disrupt workflow, as can well-intentioned friendly coworkers dropping by to chat before heading out to their next claim.

Closing claims faster and with fewer errors improves an insurer’s bottom line while boosting customer satisfaction. To learn more about improving claims processing and management, contact the experts at Actec.

Number One Reason Why Customers Switch Insurance Companies

Posted on

November 4th, 2019

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Customer retention is a huge part of the financial stability equation for insurance providers. It costs significantly more money to acquire new customers than it does to retain existing accounts, but many insurers struggle to identify what is important to their current clients as well as pain points that influence them to find a new insurer.

What Do Policyholders Want?

Not much has changed on the playing field regarding what policyholders want from their providers, which leaves many insurers flummoxed on what needs modifying. However, customer expectations are significantly higher than in previous years due to a massive increase in technology. Researching rates, typical settlements, and more are easier than ever. Online reviews and mobile apps also play a critical role in how individuals choose their insurance providers.

However, the single most pivotal influencing factor on a customer’s loyalty is their claims experience. This explains why 30% of customers report they’re considering changing insurance companies in the coming year despite 93% describing themselves as satisfied with their current provider. What’s even more telling is that customers who filed a claim in the preceding two years reported they are twice as likely to switch providers. What’s intriguing is the claim outcome, good or bad, doesn’t play a role in their decision.

6 Key Claim Factors That Cause Customers to Defect

Because customers with positive claims outcomes are still more likely to switch insurance providers, insurers need to know what aspects of the claims process is driving the change. While the perceived fairness of the settlement will always top customers’ lists, insurers need to focus on the following to guarantee customer satisfaction during the claims process:

  1. Speed of settlement
  2. Transparency of the claims process and explanation of the next steps
  3. Ease of communication with the insurer to receive an update at any time
  4. Regular, timely updates without the customer reaching out first
  5. Empathetic insurance representatives
  6. Multiple communication methods to discuss the claim including phone, email, mobile app, etc.

The biggest takeaway is that the final outcome of the claim isn’t always what matters to customers. Even if they receive a settlement that makes them happy, customers will start shopping for new providers is the experience of the claims process is lacking.

If your insurance company is struggling with an outmoded claims process, Actec can help. Contact us to learn more about our full-cycle claim and incident reporting solutions.

10 Factors Top Performing Claims Adjusters Have in Common

Posted on

October 21st, 2019

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Having numerous high-performing claims adjuster on the payroll is a huge asset for any insurance company. Their value is undeniable as they produce quality work with few errors. However, while the number of claims an adjuster processes is an easy metric to gauge productivity, several other elements set excellent adjusters a notch above the rest:

Reliability

While every employer expects his or her employees to arrive on time, reliability delves much deeper than that. Top-performing adjusters display this by:

  1. Completing claims in a timely manner
  2. Displaying integrity in their work
  3. Utilizing critical-thinking skills
  4. Taking steps to improve themselves

People Skills

Because adjusters often work with individuals following a loss, they must possess a compassionate temperament. Excellent claims adjuster take this a step further by:

  1. Employing good communication throughout the entire claim cycle
  2. Using negotiation skills to ensure the best outcome for the client
  3. Always keeping customer satisfaction at the forefront of their actions

Competency

Even if adjusters are reliable and good communicators, they need to be well versed in their craft. The best adjusters shine in the following areas:

  1. Estimating accuracy so the insurer doesn’t overpay but the client still receives a fair settlement
  2. Superior documenting skills so all work is verifiable and beyond reproach
  3. Comprehensive knowledge of policies to ensure claims accuracy

Having high-quality claims adjusters is a huge asset for insurance companies, but adjusters are only as good as the systems they use. If your claims process is holding back your adjusters from working to the best of their abilities, Actec can help. Contact us to learn more about our full-cycle claim and incident reporting solutions.

How to Solve the Top 4 Challenges in Claim Status Inquiries

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October 7th, 2019

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Monitoring the status of a claim is important to ensure it funnels through the correct channels without time-consuming errors, denials, and more. However, providers often report that monitoring a claim’s status is a heavy burden as it takes up considerable time. While one claim only requires around 14 minutes and costs an estimated $7.12, medical providers made 737 million claim status inquiries by phone, fax, or partial electronic means in 2018 alone.

The following are the biggest hurdles for providers, practices, and billing teams when it comes to claim status inquiries:

  1. Manual inquiries are costly and time consuming. Looking at the statistics above, manual claim inquiries cost billions of dollars and took up millions of work hours.
  2. Claim status inquiries don’t yield actionable results. Many claims follow their course as they should, which means providers waste their time following up on claims that aren’t at risk of denial.
  3. There are often limits to how many inquiries a provider can place on one call. This means providers must make multiple inquiries, taking up even more time.
  4. Lack of visibility makes prioritization difficult. Providers can’t intrinsically know which claims offer the highest yield, which can mean they give unnecessary time and attention to lower priority claims.

The simplest way to shorten the amount of time and money spent on claim status inquiries is to automate the process. Compared to manual and partially electronic claims, fully autonomous claim status inquiries cost $1.89 per claim and only take up around five minutes of the provider’s time. This means with 100% electronic claim status inquiries, the healthcare industry could save as much as $2.6 billion per year.

Improving the claims process from start to finish not only improves customer satisfaction, but it also helps save time and money for the provider while boosting transaction rates for the insurer. Insurance companies will receive more claims on a faster timeline, which translates to more cash flow. To learn more about improving the claims handling process, contact the experts at Actec.