We live in a digital world, where businesses and individuals rely heavily on technology for almost everything, from shopping apps and online banking to customer service and data collection.

Having so much innovative tech at our fingertips has meant has allowed companies to reinvent the way they do business. For insurance firms, this means putting customer satisfaction at the heart of everything they do – especially when it comes to claims management.

Let’s explore these emerging technologies in greater detail and discover how they’re helping insurance firms seeking to scale.

Why is scalability important in the current market?

The current market is volatile, with factors like fluctuating interest rates & rising inflation proving a challenge to insurers across the globe. In addition to these economic issues, firms must also combat:

1. Increased workloads
As an insurance company grows, the volume of claims naturally increases from the larger customer base. For these firms, scalable systems are non-negotiable, as it’s the only way they’re going to be able to handle this growing workload without compromising on level of service or responsiveness.

2. Seasonable fluctuations
Insurance claims typically have their own peak periods. For example, we see an increase in motor claims during the cold winter months and a rise in travel claims during the busy summer peak periods. Being able to scale means that the system can accommodate peak loads like this as and when necessary, throughout the year

3. Business expansion
Over time, insurers may look to expand into new markets or offer additional products. To cope with this expansion of their business, and ensure seamless adaptation to these changes, scalable systems are required.

4. Efficient resource utilization
Scalability allows for efficient allocation of resources, whether that’s servers, storage, processing power, or something else. In addition to this, it prevents insurers from overprovisioning, underutilizing, and encourages proper optimization of costs.

5. High customer expectations
Over the past few years, customers’ expectations have become even higher, demanding faster, more seamless claims processing options. By ensuring systems are scalable, firms can maintain responsiveness, prevent delays, and enhance satisfaction which in turn facilitates further business growth.

6. Disaster recovery and redundancy
Being prepared for the worst is always a smart idea in business, and scalable architectures can help with this. In the case of system failures, loads can shift to backup resources without disruption, facilitating redundancy and disaster recovery. This means little to no downtime required for claims processing, happier customers, and further growth potential.

The 4 top tech trends for claims

With so many factors playing into the importance of scalability, it’s also crucial to look at what technology can help businesses to achieve and unlock sustainable growth strategies. For the insurance sector, these tech trends are dominating the claims processing and handling aspect:

1. Mobile apps and virtual appraisals

The number of businesses and individuals using mobile applications has grown massively over the last few years, with figures from Statista predicting that they are expected to generate over $935bn in revenue in 2024 alone! These applications not only streamline and automate various processes, but mobile analytics provide insurers with the opportunity to conduct levels of research that were previously impossible.

Utilizing mobile applications can also help businesses by simplifying processes for customers. For example, providing self-service options which allow claimants to report incidents, upload evidence, and track their claims conveniently via smartphones.

Virtual appraisals are also on the rise, giving insurers a chance to conduct damage assessments from any location by leveraging video calls and images. Not only does this reduce the need for physical inspections reducing emissions associated with travel, but it also helps to minimize manual work, valuation errors, and remove subjectivity.

2. Artificial intelligence (AI) and Straight-Through Processing (STP)

AI is transforming the way business is conducted across every industry, with the global AI market size valued at $454.12bn in 2022 and expected to reach $2,575.16bn in 2032 according to Precedence Research. AI-driven algorithms are revolutionizing the insurance industry, enabling firms to analyze claims data, detect patterns, and predict outcomes, enhancing decision-making and accelerating claims processing.

Straight-Through Processing (STP) is also becoming increasingly common in insurance underwriting and payment processes, automating routine tasks, and allowing claims to move swiftly through the system without manual intervention. With this innovative tech, insurers can process claims quickly and efficiently, often within minutes of receiving the initial notification of loss. This saves insurers time and money and creates a smooth, prompt, and effective service for policyholders.

3. Blockchain technology

More and more insurers are capitalizing on the potential that blockchain technology can introduce to their business. This tech can streamline underwriting and claims processes, reducing insurers’ loss rations while simultaneously decreasing the risk profile of their portfolios.

For insurers, blockchain ensures transparency, security, and trust in claims processing—all of which are important for customer attraction and retention. It also enables efficient sharing of information across insurers, reinsurers, and other stakeholders, helping to reduce fraud and enhance data integrity.

4. Data-driven feedback loops
Fact-based claims management relies heavily on data analytics. And to avoid complaints, it’s crucial that insurers pay attention to what their customers want and need and make informed decisions with this information to improve customer experience.

Feedback loops help to ensure customer feedback is being heard, and action is being taken off the back of this information. In using these, insurers can continuously improve their processes, reduce turnaround time, and enhance outcomes.

Although it can be daunting to undergo a digital transformation, leveraging the latest technology can help you to revolutionize your claims handling process for the better, paving the way for future growth.

At ClaimPilot, our claims management software utilizes the latest innovative tech to take the hassle out of the claims handling process and ensure an efficient and seamless process for claimants. Our solution is built with scalability at the heart of it, so why not request a demo and see how we can help your business make the most of the trending tech?

Categories: Uncategorized