On September 24th, 2020, Aite Group hosted P&C insurance industry experts in a webinar roundtable titled “Digital Claims Processing Gains Momentum: Are You on Board?” The panelists were Ernie Bray, CEO of AutoClaims Direct (ACD); Jason Verlen, senior vice president of product management at CCC Information Services Inc.; Bob Skerrett, insurance division CEO of Insurance & Mobility Solutions (IMS); and Josh Thompson, State Auto Insurance vice president of auto and property claims. The free-flowing discussion was centered on how the claims process can evolve from a traditional paper-based approach to a more digital one and what carriers can do to maximize the likelihood of a successful digital claims process transformation.
Perhaps the most salient point stressed by the panelists was that any digital transformation of the claims process is inherently about the customer experience. Panelists were adamant that digitalizing the claims process would create an easier, more intuitive experience for claimants. Ideally, a digitalized claims process would guide a claimant and ensure that all steps that need to be taken are taken.
Yes, it is possible for carriers to derive benefits (such as efficiency and lower costs) from a digital transformation, but the lion’s share of the benefit should fall to the claimant. To illustrate this, these panelists contended that when people suffer a loss, they are likely traumatized. The fact that most people do not file insurance claims regularly increases the possibility of confusion, which can only exacerbate a claimant’s trauma. Guiding a claimant through an automated process can make the claims process less confusing, which in turn could lessen a person’s trauma. Something as simple as automating the first notice of loss can get the claim on the right track not only by gathering all the requisite information but also by giving the claimant a greater sense of certainty that the claims process is moving toward a resolution. However, it would be optimal if carriers were to aim higher and develop, for example, a claims process that can be initiated through an app that can guide a claimant through each step of the process.
To be sure, these panelists identified challenges to this transformation, including budgetary constraints. But the consensus that emerged is that carriers must do what they can within their constraints, which could mean only addressing one or two steps in the claims process really well instead of trying to transform all the steps and doing a poor job. Any step toward a more digital experience can help, as it was pointed out that some insurance carriers are still running their claims processes with Excel and emails.
But don’t take my word for it. You can access the webinar and hear all of the great insights shared by the panelists and by Aite Group by clicking on this link.
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