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Integratz 5 minute read

8 Important Benefits of Automating Insurance Claims Processing

There are a lot of individuals involved in submitting, reviewing, and approving an insurance claim. That means there are a lot of documents, internal workflows, and communication that needs to be completed throughout the process. Without automation in place it’s difficult to be sure you have everything you need to keep the claims process moving forward.

Moving to a more cohesive process that uses RPA and AI makes claims processing easier for everyone, while protecting your company’s reputation. 

What is Digital Transformation for Insurance Companies?

How Does Automation Enhance Claims Processing?

A digitized claims processing function can boost the performance of three important KPIs – customer experience, process efficiency, and cost-effectiveness.

Here are some of the changes that automation brings into claims that make the entire process better for everyone:

  • Customer Self-Service
    Automation allows insurers to move simple, routine transactions from claims handlers to customers. For instance, a self-service tool allows customers to submit a claim and supporting documentation easily, without the intervention of a staff member in most cases.

  • Front and Back Office Automation
    Once a claim is submitted through the self-service system, AI-empowered tools extract the data and evaluate the request. Data is then pushed into the necessary systems for the claim to move forward. For example, when the time is right, an appointment with the authorized repair shop can be scheduled with notifications sent to the customer and the shop.

  • Customer Communication
    Keeping the customer informed throughout the claim is critical for customer satisfaction. Using automation, the claim’s status is monitored and communication sent out via email as needed to collect more information, provide approval and even send payment information. The workflows are set up to trigger emails at various points throughout the process. This will also reduce the number of customer service inquiries.

  • Error-Free Data Handling
    With a solid audit trail, automated data handling reduces the chances of error. Automation increases the speed of the process significantly without compromising on the accuracy of data.

You may also be interested in reading our blog: How to use RPA for Automated Claims Processing.

What is Digital Transformation for Insurance Companies?

Key Benefits of Automating Insurance Claims Processing

Let’s take a look at the key benefits of automating insurance claims processing and what it could mean for your organization.

1. Streamlined Internal Operations Allows Adjusters to Focus on Productivity

Claims processing automation streamlines almost all administrative tasks related to an insurance claim. Automation frees up the adjuster from personally reviewing every document submitted by the customer for data that is needed. The adjuster is notified of only specific instances in which the customer information must be reviewed. And, automation increases the productivity of the workforce by eliminating redundant data entry.

2) Reduced Claim Turnaround Time for Happier Customers

Automation allows automatic capturing of customer and claims data from a variety of sources. While manual data extraction can take several days, automated data extraction removes the wait time and produces the necessary data in seconds.

Automation expedites exception handling and routes the claims documents to the appropriate adjuster automatically.

Rapid claims processing results in significant cost reductions and improved customer satisfaction.

3. Enhanced Customer Experience Helps Retain Customers

Your contact center handles the bulk of incoming customer claims communications. With an online system or an app that is tracking every aspect of each claim, customers won’t need to call in as often to find out the status of their claim.

Longer call times and high call volumes create inefficiencies and result in poor customer service. Agents experience intense pressure during peak times which may cause loss of productivity.

For those customer inquiries that need a live agent to talk with, automation will make sure you have all of the latest information at your customer service team’s fingers. This enables them to give quick answers and a better overall experience for the customer.

Enhanced customer handling throughout the claims process using automation not only allows you to minimize the number of people you need to answer the phones, it can ultimately retain more customers and increase the number of new customers.

4. Greater Accuracy of Data Reduces Re-Work and Extra Work

There is nothing more frustrating for a claims processor than to have to figure out if the data they’re reviewing is correct. This can happen when information is input at different times, often by different people, which is prone to errors and inconsistencies.

Automation lowers the chance of clerical errors. It eliminates the manual handling of documents. Several technologies (like OCR and Machine Learning) are used to capture data and convert it into a usable version that can input into various systems using RPA. This means all the data that’s in the system is consistent, and timely.

Increased accuracy of the data you’re reviewing speeds up the claims process reducing the cost of re-work and increasing customer satisfaction.

5. Well-Integrated Data Creates Efficiency

Automation organizes insurance claims processing. The software automates the entire process and makes the different steps move faster. The employees can think beyond paper pushing and engage in more meaningful work.

The vast amount of data moving through the different departments is streamlined. As a result, the overall employee productivity increases. Employees are no longer busy with redundant tasks. Instead, they look for new insights and discoveries to serve customers better.

6.Regulatory Compliance is Assured

Quick alignment of claim types to the right compliance category and jurisdiction is a challenge for audit professionals. Automation can be set up to ensure your claims are meeting the national and local regulations so that you stay compliant.

Dynamic templates can be customized to apply all compliance/claims-related rules. Automation ensures easy population of data in the places it needs to be. Reduce your risk of non-compliance with automation.

7. Respond Quickly as Demand for Claims Processing Rises

During an economic crisis or a natural disaster, such as a hurricane or fire, customer requests peak. Automation allows easy scaling of operations to collect, analyze and process the data required for a claim. This is invaluable to customers who could be without a home and/or car and need help from their insurance company as quickly as possible.

Through automation, insurance companies can save the expenses that may have otherwise incurred from hiring temporary staff to handle the peak period.

Read more about this in our blog: How Does RPA for Insurance Increase Profitability?

8. Easier and More Efficient Fraud Detection

There is always some amount of insurance fraud, but some people look for ways to supplement their income through fraudulent claims, especially during a natural disaster. These can be easier to overlook because the staff can only process so much information each day and the rush to keep moving can result in overlooking some of the signs of fraud.

Intelligent automation uses techniques such as Machine Learning and Artificial Intelligence to analyze data and detect fraud without the need for human analysis, at least at first. Low-risk payments are approved for immediate pay-out, while the high-risk ones are sent into further investigation.

Automation also allows the insurance company to build a database of fraudulent claims. As more and more data points are added, the database can be analyzed, and patterns can be identified. Automation cuts down on the cost spent on fraudulent claims and saves time too.

What is Digital Transformation for Insurance Companies?

How to Be Sure You Have the Best Insurance Claim Automation Process in Place

Sometimes, insurers are worried about losing the “personal touch” by automating the claims processing. However, process automation added to your workflow can actually enhance the personal touch that you’re able to give customers – when they want to interact. In other cases you can give them what they want in a self-service system.

You're going to cut down on administrative costs and make your organization more competitive when your claims processing is automated. If you’re not sure how to get this started, let the automation pros at Integratz help you define the best way to automate your claims processing. Request a time to talk with a member of our team.

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Published by Integratz