Insurance companies have achieved a lot in claims management automation. About 30-40% of claims are processed on a ‘no-touch’ basis and the target is to increase it up to 60-70%. But it only applies the processes inside insurers’ claims systems, where the claims data is already entered … mostly manually, after receiving it by emails and phone calls. To reduce manual work, insurers are developing web portals for online claim reports. This article will explain why it not solves all the problems and what is missing to achieve full automation in claims handling process.
Let’s start from an example. Here are few statements of what has to be implemented in B2B motor insurance claims handling process:
- Company drivers should capture the accident data using a special app, connected to his company’s claims system. This increase completeness and quality of the accident information, as well as speed of data delivery.
- The data between the systems of claims handling process participants (clients, insurers, brokers, loss adjusters, car repair facilities and others) should flow automatically, without double manual entries.
- All participants should see the progress of claim process in their systems and know their tasks.
But how to connect all the systems, when an insurance company has thousands of B2B clients?
How to integrate ALL claims systems?
An obvious solution in the situation when you need to connect a lot of different systems is a API hub with standard data structure, to which every system connects once and become connected with all others. A good examples are Zapier and IFTTT.
However, to decide to start integration with such hub, you should know that your partners are connected also. Here creates a vicious circle, because nobody wants to be the first. But why to force anybody? If partners currently are accepting your handwritten emails, they will accept emails sent by your system also. It means, when you are sharing a claim case, adding a document or updating some data, the system can send all the information by email, if your partner’s system is still not connected.
This is the concept, from where we started ClaimsControl. But, there is another big issue: the biggest part of SMEs still account their claims in excel, store claim documents in paper files or computer folders. Even if they account 200 claims per year, often they see no reason to pay for a claims system. If we will not get them on board, the claims automation process will stuck. We talked with lot of them. Even if to provide them a claims system for free, lot of them are not enthusiastic about the changes. But, we found the magic key! When, after their refusal, we are asking: “But what, if your insurer or broker will kindly ask you to report the claims through this system?”, 100% of responses are positive – “of course, why not!”.
So, we launched a SaaS system, where anyone can create claim cases and share them with insurer, broker or any other process participant just by entering their emails. All participants can update the case and nobody should care, how their partners prefer to get updates – by email, or by API connection.
This solution creates a range of advantages for all claims handling process participants. Let’s discuss it form insurer’s point of view.
How insurers will benefit from this?
Apart from reducing the manual work, the Claims Sharing System brings many other benefits to insurers:
An insurer can think: why to care about additional integration, if we can ask everybody to register claims only through our online portals? Some of them are doing it already. But this will turn away their B2B clients, forcing them to do double work by entering information into their systems (or excels) and into insurer’s portal. Moreover, using the claims sharing system they don’t need to spend time for writing emails during the process – it’s enough to add document or update a field in the claim case and system will send everything automatically. A number of phone calls will be reduced by the built-in chat feature, which is more convenient, because keeps all communication history in the claim case.
Big savings for insurance brokers
Another big issue is the integration with insurance brokers. Many of them offer claims handling services, so, they are in the middle of communication between client and insurer. It generates a big flow of data to insurer from one place, therefore there are a lot of integrations between the systems of insurers and brokers already and more are coming. But what are the costs of each such integration? Insurer can just give its web service, but the broker will need to make integration with many insurers and each of them will differ. In our case everybody just need to make one integration to the hub using our open API and we will take care about the rest.
Increased fraud control
Data delivery speed plays significant role in fraud control. For example, in MTPL cases it’s very important to get in contact with an injured party asap, before they will find ways how to increase the claim amount. If we will build a route to deliver data directly from company’s driver smartphone to the insurer, it will be much easier to control the process.
Easier involving of loss adjusters
Independent loss adjuster often can save a lot just because his location is closer to the damaged property. According to this interesting article, uberisation is coming to insurance. It means that number of partners for insurers should rise and the new challenges of communication with them are easily solved with claims sharing system.
Integrated car repair services
IT systems of car repair services are also becoming more and more advanced and it’s only question of time, when it will be a common practice for all claim participants to see in their systems the stage of car repair process. But first we need to start from basic claims data exchange with them.
How to start
The first (MVP) version of claims sharing system is launched recently. We have a long list of further developments, however priorities are requests of our clients. If you are interested to start, create a free account, get a picture what is done already and contact us to discuss what you are missing. We can quickly translate the system into your language and will be happy to launch pilots with you.