ClaimAble Blog

Keep the Customer Satisfied

Insurance claims never occur at a good time. They are stressful. There has been a loss, and the customer expects a prompt and fair outcome based on the premium paid. No amount of effort will ever eliminate this stress, but intelligent customer relations management can go a long way to mitigating it. And innovative software tools make this a very cost effective option for insurers and brokers.

Public perception of the insurance industry is not good, with the media constantly focusing on the negative. All the customer needs to know is that their claim will be honoured with a minimum of fuss, and that it will not become a drawn out saga of interpretation and frustration. Proactive customer service techniques can present a potentially aggrieved client with a good customer experience that will generate positive feedback.

Effective customer management solutions may well result in the client renewing and even extending their cover as a direct result of the claim being brought to a successful conclusion.

Customer Relationship Management Tools

There are web-based software tools available today to achieve just the level of service that is needed to satisfy the claimant. These also provide analytical data that measures the level of retained satisfied customers, against those lost as a result of a poor claims experience.  The cost effectiveness of these customer relationship software tools will quickly become apparent.

One such example is a where a system generated text message in a personalised form is sent to each claimant to keep them informed of the various stages of the claim. Such stages could be: when the claim form has been received; when processing has commenced; confirmation of the loss adjuster’s appointment time; and confirmation of receipt of their report. These are just examples. The insurer or broker can set the content and timing of the texts to suit their business.

It is even good practice to communicate “no news” where unavoidable delays are occurring with the claims process, so the client knows that they are still in the “loop”. Reassuring and well chosen words will all help to keep the customer satisfied.

Regular communication is also very important where a fraudulent claim is suspected. Simple mistakes are made by people under the stress of their own lies, so frequent and regular communication may serve to identify fraud, or cases worthy of closer investigation.

This software provides a scheduler for all regular contact, and it records the content and outcomes of all communications with the claimant.

The Wrong Way

Silence, delays and “standard form” letters present the harshest treatment of a stressed customer. They will potentially inflame all stages of claims processing. Silence and delays leave the client feeling ignored and cheated, even if their claim is actually being processed diligently but quietly in the background.

Standard form letters seldom present useful facts or outcomes, and frequently the language used is inappropriate and authoritarian.  They can create anger and frustration for the claimant and should have no role in any customer relationship unless clear evidence of a fraudulent claim is at hand.

Such unimaginative and unfriendly measures can turn a customer from being a strong advocate for your insurance company into an antagonistic complainant with the consequent bad publicity.

Claims leakage represents the difference between the amount actually paid out on claims, and what should have been paid out. It refers to the money lost during the claim settlement process from preventable causes; such as inefficient processing, human error, outdated operational procedures and fraud.

Claims software, like ClaimAble, can actually help reduce claims leakage. It all comes down to making informed business decisions and dedicated applications are making this easier and simpler. Identifying claims leakage is a difficult problem. However, equally as difficult, if not more challenging is the task of reducing it! There are certain things that software is inherently good at, such as data analysis, that can result in a dramatic reduction in preventable losses.

As the creators of ClaimAble, we’ve compiled a list of the key features of our claims software that can provide you with the information required to cut down on claims leakage.

1. Speed and efficiency.

By reducing overall claim processing time, you decrease the chances of paying out more than necessary. If the claim is resolved as quickly as possibly, additional costs – such as those incurred by lawyers, contractors and other third parties – are significantly reduced. Claims software facilitates the prompt resolving of claims by helping to establish a common workflow and by providing time saving tools.

2. Trend analysis.

When the number of claims stored becomes sufficiently large, trends can be identified for different types of claims, with consideration of common criteria. This can be a powerful fraud prevention tool and by highlighting claims that fall outside the most common patterns, this potentially reveals erroneous or fraudulent claims. Staff can then make informed decisions on whether to investigate further from a list of statistically unusual claims. The software alerts the user to any activity that deviates from the standard trends and sheds light on potential sources of claims leakage.

3. Data mining and crowd sourcing.

A significant source of claims leakage is the problem of overpaying for labour, contractors, agents and other suppliers. This part of the claims process often involves outsourcing or appointing external individuals or companies. Claims management software can analyse trends over time, finding the average costs paid and display alerts where appropriate if a discrepancy is found as well as making price suggestions based on the market.

4. Increased data integrity.

Sometimes costs can be inflated from erroneous data or missing records. ClaimAble is an example of an application that focuses on increasing data integrity by cutting out sources of inaccuracy such as human error. User interface validation and pre-save checks can go along way to ensuring data stays meaningful and correct throughout the claim life cycle. This ultimately helps reduce unnecessary leakage that might otherwise be incurred by having to retrospectively correct mistakes.

5. Establish business rules.

Part of an efficient claims workflow is being able to handle a wide variety of cases. Flexible claims software can help establish business rules that cater to the majority of eventualities, so staff know how to proceed when a claim deviates from the common path. This reduces the amount of time and resources required to resolve the claim, cutting down on a source of claims leakage.

6. Exception handling.

There are always exceptions to the normal, and being able to handle these edge cases is an effective way to reduce claims leakage. Over paying for a claim can occur as a result of the increased resources that would otherwise be required to manage a claim that requires special attention. Claims software can be sensitive to the nature of such claims, accommodating the additional requirements and alerting users when certain events occur.

There are many other factors that influence claims leakage, but we believe the above list covers some of the significant improvements delivered by effective use of claims software, such as ClaimAble. In providing the tools and information to make informed decisions, claims software can deliver huge reduction in losses by truly leveraging your claims data effectively.