The bar has been raised. Policyholders now expect more from insurers, and this goes double during the claims process. If your claims management software isn’t delivering a superior claims experience, you could pay the price in wasted time and customer churn.
Insurance Claims Management Software May Be Your Most Critical Investment
When it comes to claims, the stakes are high.
A Value Penguin analysis of National Association of Insurance Commissioners data found that 68% of all insurance customer complaints are related to claims. The claim process is a make-it-or-break-it part of the insurance customer relationship. Claimants have experienced a loss, and they’re counting on their insurer to make them whole again – not to add to their frustrations.
Unfortunately, insurers seem to be failing in some cases. The J.D. Power 2022 U.S. Property Claims Satisfaction Study found that claims satisfaction had dropped to a five-year low. Consumer expectations have risen, and some insurers just aren’t keeping up.
Insurers who fail to meet claims expectations probably won’t get another chance. Accenture has found that 83% of claimants who were dissatisfied with the way their claim was handled had switched or planned to do so.
Insurers have one opportunity to show policyholders that they made the right decision when they decided to buy a policy. Don’t blow it. Make sure you’re using the best claims management tools available.
Claims Handlers Are Under Pressure
Whether they work directly for an insurance company or an independent adjusting firm or TPA, claims handlers are feeling the pressure. When managing claims, they have to watch out for fraudulent claims and apply the policy terms fairly while also keeping claimants happy during a stressful event. Customer relationship management is critical, but that can be hard when routine tasks are taking up all their time.
Sometimes, it can seem like claims handlers are stuck between a rock and hard place, but the right claims management solution can help them work smarter, not harder.
Improving the Claims Process with Claims Management Software
If you want to keep claimants happy, you have to understand what they want from the claims process.
Thankfully, this isn’t a mystery. Policyholders are pretty consistent about what they expect from insurers. Most of their claims processing preferences boil down to three key issues:
- Speed. According to Accenture, 95% of claimants said that speed to settlement was an important part of the claims experience. J.D. Power has also noted links between slower claims cycles times and lower satisfaction scores. Claimants want the claims process to be finished as fast as possible so they can get on with their lives.
- Communication. Accenture says that 94% of claimants say it’s important to have a claims process that’s transparent and clearly explained, making this almost as important as speed in terms of claims satisfaction. Claimants want to know what’s going on, and if they’re left in the dark, they might assume it’s because their claims handler is dropping the ball, or even worse, has something to hide.
- Convenience. According to Accenture, 90% of claimants say it’s important to be able to contact your provider anytime and check real-time claims status. J.D. Power also found that complicated claims processes dragged down satisfaction scores. Claimants have a lot of other things going in their life, and they don’t want the claim to eat up any more of their time than necessary.
Your claimants want speed, communication and convenience. The right insurance claims management software can help you deliver all three.
Faster Claims Resolution
In the claims management process, a lot of different issues can cause delays. You need a claims management system that addresses common pain points to drive faster resolutions. When selecting software, look for the following:
- Automated Workflows. A lot of claims handling tasks are routine and tedious, but they can still eat up the claims professional’s time. Automating workflows frees up time and speeds up the process.
- Key Integrations. When programs and systems don’t work together, time can be wasted. Software integrations and embedded features streamline processes.
- Rapid Search Functionality. Your claims handlers shouldn’t have to waste time looking for information and claims details. Rapid search options and document management make work easier and faster.
- Digital Payments. From the claimant’s perspective, the claim isn’t finished until the payout is made. Digital payment options can deliver funds almost instantly.
- Reliable Uptime. Software downtime has to be one of the most frustrating delays. Look for software with close to 100% uptime, as well as a rapid-response support team that’s ready to help in the rare occurrence of problems.
Improved Communication
Without strong communication, the claims process can seem confusing or even adversarial to claimants. When selecting a claims management system, look for features that support communication:
- Automated Updates. Claims handlers get busy. As a result, messages might slip through the cracks. With automated updates and alerts, this isn’t a problem.
- Efficient Processes. When claims handlers are bogged down with routine tasks, they may not have time to focus on the human side of claims. A claims management system that boosts operational efficiency gives handlers the room they need to express empathy.
Protecting Your Bottom Line
Customer satisfaction is a great way to boost retention and bolster your bottom line. At the same time, there are other considerations. A claims management system should be attractive from the point of view of the insurance company and the claims handler, too.
Here are some more features to look for:
- Multi-Line Compatibility. If you have to use different systems for different lines, you’re increasing complexity and training requirements. You want one operational solution for all your claims handling needs.
- Tracking. Claims tracking, time and expense tracking, payment tracking, skills and license tracking – there’s a lot to keep track of! Your claims software should make it simple.
- Lloyd’s Compliance. If you want to take advantage of the Lloyd’s of London market, you need to meet strict requirements. This can be a time-consuming process, but the right claims software can simplify compliance.
- Security. Security is essential. Look for SOC II compliant security.
- Speed-to-Market. The sooner you can realize improvements, the better your ROI. Consider how long it will take both to implement the system and to train your team on it.
VCA Claims Management Software
Ask yourself:
- Are your claims handlers struggling with their workload?
- Are you losing policyholders after a claim?
- Is the claims process taking more time than it should?
It’s time to embrace a better claims management process.
VCA offers is a scalable, integration-friendly platform with robust features. By automating your claims workflow, you can see improved policyholder satisfaction and a cost reduction of up to 30%.
Our VCA support team offers email support with a response time of 30 minutes or less, and our client services will help with the day-to-day use of the system, including walkthroughs and training, to make sure that you get the software’s full value. Our executive account managers also help develop business strategies and long-term planning.
Are you ready to upgrade your claims process with state-of-the-art claims management software? Request a demo.
