Substantial upfront costs and underwriting knowledge insulated the insurance industry from disruptors for some time. However, startups shifted their focus to other areas of insurance, such as policy distribution, marketing, and merchandising. These companies worked hand-in-hand with established insurance carriers and are harnessing their newfound knowledge to alter the status quo in insurance. Examples of some of the biggest disruptions include:
- Flexible coverage. Disruptors offer their customers short-term coverage that can flex depending on their needs. For example, customers that don’t drive very often don’t need as much coverage as the average driver. However, they often overpay for standard policies that carry coverage they don’t need. Rising competitors offer by-the-mile coverage to insure individual trips and allow customers to see the cost of insuring each trip before they depart.
- Policy comparisons. Many customers struggle to compare coverage options between individual products. Comparing policies from one company against another is even more challenging, as they don’t always use the same language or formatting. Comparison websites equipped customers with a powerful tool to easily compare policies and quickly identify the least expensive providers.
- Connected devices. Customers expect personalized experiences from their insurance providers, and connected devices neatly meet that necessity. Sensors can detect and alert homeowners of water leaks and fires to prevent large-scale damage. Satellite imagery can monitor the home for changes and identify suspicious activities to prevent break-ins and thefts. The companies also offer their customers discounts for preventing costly claims.
- Digital experiences from start to finish. Few customers enjoy the idea of communicating with their insurance provider. Many dread the long wait times, multiple transfers, and protracted claims cycle that plague low-tech insurance carriers. Disruptors are digitizing the entire customer lifecycle, from researching and purchasing insurance products to initiating and resolving claims. Some examples include providing simple coverage comparisons, rapid policy quotes, multiple payment methods to suit customers’ comfort levels, and omnichannel communication.
Regardless of how an insurance provider chooses to address the challenges of emerging innovators, solid communication is the cornerstone for success. Contact Actec to learn more about implementing new communication channels for FNOL to improve the customer experience.
Insurance companies don’t often have frequent communication with their clients until a claim arises. While most insureds are fine with this limited interaction, how their insurance providers handle claims is the single most meaningful and telling interaction they have. If an insurance company mishandles the claim or fails to bring it to a satisfactory resolution quickly, they run the risk of losing a customer.
What Claimants Want
High-quality claims processes have three things in common: they’re fast, they’re efficient, and they’re transparent. Customers are no longer willing to accept vague or murky answers regarding where their claim is in the process. They also expect an error-free claim to receive their settlement quickly. Delays, mistakes, or confusion all cause insureds to reconsider their insurance provider.
Better data and automation can help insurance providers streamline their claims processes. The following are some of the ways insurance providers can utilize data:
- Automatic first notice of loss (FNOL). First notice of loss occurs when the insured first reports the incident to their insurance provider. However, many vehicles come equipped with telematics that can detect accidents and injuries. While some vehicles will dial emergency services in the event of an accident, insurance providers can use this same technology to trigger a claim on the insured’s behalf. Vehicle sensors and video imagery can give insurance companies an idea of the extent of the damage to make sure the most relevant adjuster receives the claim.
- Drones and satellite imagery. Similar to using vehicle telematics to initiate FNOL for car accidents, insurance companies can pull data from drones and satellites following major storms to identify damage to the insured person’s property. When the customer calls to report the loss, their provider can already be several steps into the claim to expedite the process and improve the insured’s experience during a stressful time.
- Greater accuracy on repair timelines. When insureds file a claim for a vehicle loss or property damage, the first question on their minds is how long it will take to fix so they can resume their lives as usual. Insurers can pull from historical data to see how long certain repairs will take based on the type of damage or loss the insured reports.
- Reduce fraud. Fraudulent claims increase costs, which increase premiums for all customers. By harnessing data from social media, insurers can identify fraudulent claims. Utilizing AI can also red flag cases that score high for fraudulent behavior.
Most insured don’t think about their insurance provider until they need to make a claim. How smoothly and quickly that claim processes play a significant role in customer satisfaction and retention. If your claims processes are frustrating customers or costing your insurance company business, Actec can help. Contact us to learn more about improving claims management.