How Insurance Companies drive user convenience using automated Claim Admin System

Insurance Testing Services

The insurance market is growing at a phenomenal rate with new players entering the market and niche players of yore finding it difficult to live up to growing customer expectations. One of the areas where insurance companies need to tighten their delivery systems is claim processing. In fact, it can redraw the relationship that insurers have with their customers. An automated claim admin system can be the ultimate differentiator for any insurer in expanding its market share and achieving profitability. No wonder insurance companies, old as well as new, are looking to improve their customer experience by speeding up claim processing. So, when an effective automated claim admin system can tilt the scales for any insurer as far as retaining the market is concerned, how can insurance application testing stay behind?

Insurance companies from across the world are faced with the twin challenges of customer acquisition and retention. And to address the same, an effective claim processing system has become the need of the hour. This is a significant departure from the existing claim processing systems carrying lengthy and error-prone manual procedures. The legacy systems with large manual interfaces have issues like data inconsistency, lack of transparency, poor performance, and fraudulent claims. These issues have a negative impact on deliverables such as timeliness, accuracy, and customer experience. Moreover, such claim processing systems running on legacy platforms with interfaces across geographies and digital touchpoints have made accuracy and detection of frauds a difficult exercise.

To deal with such challenges, insurers need an automated claim processing system that is comprehensive in its scope and collaborative in its execution. This brings into the equation the need to conduct a rigorous insurance app testing exercise to ensure quality in its performance. However, let us first understand the consequences of persisting with the present system of claim processing.

Challenges of not having an automated claim processing system

• Less transparency as most stakeholders do not have any say (or insight) into the whole process or system.

• High turnaround time for processing claims, leading to customer dissatisfaction.

• The manual way of tracking and managing data (stored in physical storage like ledgers) leads to errors. The errors can get compounded when it comes to missing out on tracking fraudulent claims.

• Siloed processes with minimal or no collaboration with each other leading to delays.

• Poor integration of processes leading to a less than ideal decision-making process. This is due to the fact that the entire decision-making process is not centralized but is rather disparate and incoherent.

• Ineffective communication across channels causing delays.

• Poor verification of critical personal and business data can lead to an increase in fraudulent claims.

• Delay in claims processing leading to reduced customer loyalty.

• Insurance company faltering when it comes to customer acquisition and retention. 

The end-to-end automated claim processing system would help insurers to proactively monitor and administer the lifecycle of an insurance claim, comprising phases such as settlement and closure. Often the delay is caused when external stakeholders such as third-party administrators do not deliver their inputs in time. However, with the automated system duly validated by the insurance testing services, every stakeholder, internal or external is integrated into the workflow. This leads the insurer to exercise tighter control throughout the process.

An automated claim admin system driving better user experience

An automated claims processing system comprising myriad service components can help any insurer in augmenting capabilities, speeding up closures, streamlining workflows, identifying fraudulent cases, reducing costs, and enhancing operational efficiencies. Let us illustrate the same for better understanding.

• Achieving seamless interactions by sourcing and classifying inbound data – from internal systems and third parties.

• Reducing administrative tasks and time spent in executing them. This helps to generate a better customer experience.

• Ensuring the protection of sensitive personal and business data.

• Promoting faster processing of claims – aided by insurance software testing.

• Reducing the likelihood of errors by replacing manual inputs.

• Offering quick and seamless access to products and services for customers.

• Facilitating quick decision making when it comes to critical situations like the identification of fraudulent claims.

• Meeting the expectations of policyholders with quick and accurate processing of claims.

• Enabling greater cost efficiency by reducing the processing steps.

Three ways an automated claim admin system can drive UX

Speedy claim resolution: A major pique that customers have with the insurance providers is about the inordinate delay that takes in the processing of claims. However, the centralized software system with the minimal human interface can cut barriers and fasten processing.

24/7 service: Customers need not require to visit the offices of insurance companies at inconvenient hours. They can apply for claims at their chosen time and location.

Increased accuracy: It has been observed that insurance companies more often than not reduce the quantum of claims’ amount. This is due to the arbitrariness often exercised by officials at various stages of processing. An automated system can get rid of such anomalies.

Conclusion

The customers of today are not satisfied with mediocre services. This makes insurance companies with legacy systems to either reform/transform or perish. Developing an automated claim processing system and integrating the same in the workflow can help in breaking internal barriers and enhancing the customer experience. The latter can be leveraged by insurers in shoring up their balance sheets and staying a step ahead of their competitors. Since the stakes are significantly higher for insurers, the automated claims processing system should be subjected to insurance domain testing. This can ensure the system remains robust, scalable, dynamic, and secure. Importantly, it should facilitate the tracking of fraudulent claims and save the company lots in revenue.

Diya works for Cigniti Technologies, Global Leaders in Independent Quality Engineering & Software Testing Services to be appraised at CMMI-SVC v1.3, Maturity Level 5, and is also ISO 9001:2015 & ISO 27001:2013 certified.