Automating claims and quotes – how will this benefit your business?

12th March 2019

Finding ways of reducing claims processing costs is a constant battle in a world where a rising number of claims, fraud and the experts needed to processing them is impacting the bottom line. The problem is that some insurers and brokers still rely on old, outdated legacy systems when it comes to processing claims or quotes, which is prone to many errors.

The shift to automation, however, is accelerating and there are many benefits that will come from it, including:

  1. Fraud can be identified more easily: Fraudulent claims will be easier to detect with automation. Detecting fraud manually can be a time-consuming arduous task. But by automating this process you could free up your employees to do more effective tasks or relieve them from duties that they can’t manage.
  2. Automation will bring about objectivity: Cases that get handed over to senior claims handlers or special investigators won’t result in time wastage as screenings aren’t conducted randomly or sent through based on someone’s ‘hunch’. While there’s nothing wrong with listening to intuition, at least with automated services you can rely on evidence based on secure data and statistical probabilities.
  3. Fraud management is more effective:With automation backed by secure data there’s the strong likelihood that only the most sinister of activities get escalated up the investigations chain and that less time is wasted on claims that end up being legitimate.
  4. Happier customers:By automating processes, and effectively cutting out human intervention – which can take more time – customers can get an answer to their claims and quotes submissions more quickly and timeously. Good service is bound to attract more customers and retain existing ones.

What has to be highlighted is that jobs are being lost and it’s one negative aspect of automation that cannot be ignored as it is a concern for those working within the industry. A number of insurers have announced jobs losses in claims departments following automation of processes.

But while some jobs are being lost, the general consensus is that it doesn’t mean that all clams positions will become entirely extinct. A report by PwC says that by 2030, 30% of existing UK jobs are susceptible to automation from robotics and Artificial Intelligence (AI) but it added that ‘in many cases the nature of jobs will change rather than disappear’.

In general, there appear to be more benefits than pitfalls to automating claims and quotes. With Towergate, for example, SchemeServe was able to upgrade its Oxted branch (one of 100+ branches nationwide) from using manual processes and underwriting guides to using a solution which automated these processes and increased efficiency.

The consultation doesn’t have to take long. This was all initiated after several weeks of face to face visits which involved capturing details of the product’s design. As former underwriters, SchemeServe were able to understand the complexities of the product and what was needed in order to make the entire process a more seemless experience. It also doesn’t have to create any delays - Towergate were live and trading a mere three months after signing.

If you’re keen on improving your claims and quotes systems and processes through automation, then contact us. There are many ways in which we can help you.

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