How Insurance claims processing and management is evolving

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How Insurance claims processing and management is
evolving
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Introduction Insurance is a relatively stable
industry, which was first shaken by Insurtech and
is now being impacted by the COVID-19 pandemic.
The former is facilitating a technological shift
that will help the global market to deal with the
negative effects of the latter. So, even if
Insurtech was not as widely accepted in the
industry before, it will be a crucial aspect of
the insurance sectors recovery plan from this
global crisis.  In the current scenario, every
organization is walking on thin ice and therefore
it is critical that they take appropriate
measures that would strengthen their foothold in
the market when the crisis subsides. Insurance
claims processing is as complicated and
tricky-to-handle a process as it is essential to
both the insurance providers and buyers. For
both the insurers and insurees, the claim
adjudication process is nothing less than
a nuisance. The traditional claim processing
systems are opaque, cumbersome, and
time-consuming, thus rendering an already
vulnerable customer question the choice of their
preferred insurance provider. On the other hand,
insurers have to ensure that they handle the
process with utmost accuracy, so as to prevent
both underpayments and overpayments of the
indemnity obligations.
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Shifting to a digital-driven claims adjudication
process The fact that 84 of the customers
switch their insurance providers after a bad
claims experience reinstate the importance of the
process as well customer satisfaction. Insurance
industry should move toward an ecosystem-based
model that offers the customers an interconnected
set of services through a single platform. Such
ecosystems, driven by smart technologies such as
Artificial Intelligence and RPA, can empower the
industry to gain productivity by scale through
channeling functional excellence, structural
simplification, business transformation, and
enterprise agility. In addition to an omnichannel
experience, customers will be able to leverage
digital capabilities throughout their journey
with the insurer.  After a customer provides a
first notice of loss (FNOL) in a traditional
claims processing setting, the manual
acknowledgement and assigning of the claim to an
adjuster take several days, significantly
delaying the settlement process. Further, the
manual investigation and erroneous documentation
raise the possibility of claims leakage and
litigation issues. Digital transformation can
enable insurers to reimagine this legacy process
with the help of smart technology solutions
driven. 
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  The impact of Robotic Process
Automation  Deploying RPA-based software for
acknowledging, filing, documenting, and similar
time-consuming processes can result in a more
accurate, less error-prone claim settlement. By
using Robotic Process Automation, insurance
providers can improve transaction processing by
up to 50 while gaining productivity benefits of
more than 60. As RPA takes over the cumbersome
processes, manual efforts are reduced by as much
as 90, freeing up the manual resources to invest
their skills into more cognitive-intensive
activities such as fraud prevention. Not only
does RPA standardize the processes but also helps
create an environment where sensitive data can be
processed with much lower risks.  Read Full Blog
at https//www.cigniti.com/blog/insurance-claims-
digital-transformation/

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