The only way to transform the claims is through digital transformation
In their 2021 report, KPMG predicts that within the next 5 to 10 years, many claims functions will likely undergo digital transformation, enabling some claims to be reported and settled without human intervention.
Regarding claims transformation, KPMG recommends “resetting the foundations within claims” – increasing flexibility, advancing automation, creating a core data strategy, enabling machine learning, augmenting the use of wide data sets, and focusing on prevention. In terms of solving problems with still manual processes, the future demands a redesign of supply chains using automatic tools and virtual technology.
Capgemini has prepared a range of useful tips and pillars for “claims transformation”, dedicated especially to life insurers, but in our opinion, some of them have a wider reach:
Improve customer experience through automation
During the claim initiation, a claimant is required to supply various documentation and confirm data, which can be streamlined through digital claims processing. The problem begins when the data in the insurer system is outdated or incorrect. This is where the importance of digital tools, such as the online client portal and 360-degree view account, comes into play. The easier insurers make it for clients to keep their policy and personal data up to date, the smoother the claims process will be.
Increased cost benefits and asset retention through service digitization
According to Capgemini, we are heading into a high-payout period where asset retention will be key to survival for life insurers. Achieving a successful digital transformation requires aligning the company's digital strategy with its operational goals. “The Great Wealth Transfer” has begun, and the baby boomer generation is expected to pass more than $68 trillion to their children over the next 20 years. As such, the relationships built with beneficiaries could be one way to close the insurance ownership and retirement gap. We can expect baby-boomer-held life insurance policies to start paying out in large sums. If insurers can retain even 0.5% of these payouts through new policies with uninsured beneficiaries, it will change the impact of this economic transfer across the industry.
There is no time for wait and see. Digitized customers will not wait.