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In Search of the Ideal Insurance Claims Software: 13 Considerations

When you shop around for the ideal insurance claims software, there’s a lot to consider. You don’t just need a claims software program you’ll love – you need a program your entire team will love. To avoid picking a system that doesn’t meet everyone’s needs, you need to focus on 13 key considerations.

Why Your Insurance Claims Management Software Matters

Claims software systems matter because the claims process matters.

For insurance companies, managing claims is an essential part of controlling costs. An inefficient claims process eats up time and other resources. Also, claims that drag on can become more expensive. Since insurers often struggle to keep their loss ratios down, the claims process is a logical place to focus.

Claims are equally important for insurance customer. After experiencing a loss, customers need their insurance company to make them whole again – and they want to avoid any hassle or delays. A subpar claims experience can drive away customers, causing insurers to lose future insurance premiums. In fact, Accenture says insurers could lose as much as $170 billion over the next five years as poor claims experiences result in lost insurance premiums.

If you pay $5 for a coffee but then have to wait 20 minutes and, when you finally get the coffee, you find it’s smaller than you expected, you probably won’t go back to that coffee shop. When insurance customers pay their premiums, they’re paying for a claims experience they might need. If insurers don’t deliver a good experience, customers don’t have much incentive to renew their policies the following year.

How Your Claims Management System Can Improve the Claims Process

Insurance claim software programs impact the entire claims lifecycle, meaning it’s key to a successful claims management process.

If a program is easy to use, claims professionals are able to work faster. That means they’ll have more time to handle other tasks, like more cases or communication with claimants.

A program can also impact the claimant’s experience and improve customer satisfaction – for example, by sending supporting communication to ensure the claimant always knows what’s happening.

What to Look For in Your Next Claims System

When comparing insurance claim software programs, think about how the program will impact your claim handlers, claimants, managers, and company’s bottom line. The following 13 considerations can help you identify the best claims management software for your needs.

1. The insights you need

Data can inform important decisions and help you determine whether your company is on the right track. To make sure you have the data you need, look for a claims management system with embedded analytics and insights. Also make sure the program supports on-the-fly data queries.

2. Seamless integration with other systems

The insurance process can be complex. You no doubt rely on multiple programs from different vendors to handle different aspects of the process. If these programs don’t work together, the process may be more time consuming, there’s a higher risk someone will make a mistake, and everything will be a massive headaches for your team. Look for a claims management system that provides seamless integrations with key technology partners.

3. Support for Lloyd’s of London compliance

If you want to take advantage of the Lloyd’s of London market, you have to meet Lloyd’s requirements. Unless your claims management system supports compliance with Lloyd’s (including Lloyd’s mandated reports), this can be an arduous task.

4. Ease of financial transactions

Since the claims process is largely about money, it makes sense to look for a claims management system that supports financial transactions. This should include reserve and payment tracking and a billing and payroll module. As claimants are increasingly expecting instant payments, it should also include digital payment processing.

5. An efficient workflow

The claims workflow includes everything that needs to happen during the life cycle of the claim. A smooth workflow can deliver a positive ROI by eliminating friction and saving time.

Software can automate many routine tasks, reducing manual labor to save time. Look for automated workflows that minimize repetitive tasks and make the claims process as efficient as possible.

ultimate buying guide for claims management systems

6. Customizable software

Configurations that work for one company might not work for you. Look for a program with customizable rules and workflows that you can adjust to meet your needs. Also look for customizable file layouts and fields.

7. Scalable software

Your company will grow over the years, but you don’t want to be constantly switching claims programs. Look for a highly-scalable program that can adapt to your changing needs.

8. Automated alerts

You don’t want important details slipping through the cracks. Look for a claims management program that offers automated status alerts and emails.

9. Evergreen software

Software can quickly become outdated. Evergreen software solves this problem by providing regular updates, which means you won’t have to replace your system a few years down the line. Do your future self a favor and look for evergreen SaaS.

10. Secure software

Your claims system will handle sensitive information. You need to make sure this information stays safe. Look for a claims program that provides advanced security options, real-time security monitoring, and PCI-compliant data protection. Also look for a SOC II-compliant vendor.

11. Dependable software

Downtime is lost time. A claims system can’t just be great some of the time – it needs to be available when you need it. Look for a claims program with guaranteed system uptime as well as disaster recovery tools and a rapid response support team.

12. Software that’s easy to learn

If you adopt a new system that’s difficult to use, your team’s morale and productivity could suffer. Look for a system your team can learn to use quickly.

13. A mobile app

Claims handlers can’t always be at their desks. Mobile apps offer easy access on the go, making it possible for users to update files and access information whenever they need to.

Although mobile apps have become fairly common, some lack important features. Look for a claims management system with a mobile app that supports photo uploads, rapid search, address mapping, time entry, attachment download, and other essential features.

This Isn’t a Decision You Should Rush

The right system can result in more productive claims handlers, more satisfied insurance customers, and an impressive ROI; the wrong system can drag your company down and raise your costs.

This isn’t a decision you want to rush. These 13 considerations give the broad strokes of what you should consider in insurance claims software. The Ultimate Claims Management Software Buying Guide provides a more in-depth checklist of the individual features you should look for. Get the Buying Guide.

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