How to upgrade auto insurance claim experience and reduce cost per claim
In the eyes of the customer, claims experience is what insurance is all about.
But many insurers are still getting it wrong.
On average, P&C insurers spend up to 80% of total premiums on claims handling and indemnity.
Cost per claim = The total cost (labor, technology and overhead) of processing property and casualty (P&C) insurance claims, including claims intake, adjustment, estimate and settlement, divided by the total number of P&C claims processed over the same period of time
Why does it cost so much? Deep Dive
A big chunk of claims process expenses is caused by inefficiencies in the data collection processes that are often handled with manual and paper forms. This results in incomplete or missing data, slow speed of claim handling, and lack of transparency.
- Manual Data-Entry: Most companies still rely on paper-based claims processes and manual data-entry
- High error-rate and unreadable forms: Errors are introduced both by the customer and by the data-entry team. On average, over 60% of manually filled forms have mistakes, unreadable handwriting or unreadable scans. Some of them are even lost every now and then. By getting incomplete or mistaken data, adjusters must communicate with claims intake department over and over to clarify inbound data and gather additional information. Customer representatives must then contact the insured, creating friction and causing delays.
- Multiple data formats: Customer inputs end up in various media formats: Paper, PDFs, electronic documents, scanned images, emails or apps.
- Lack of integration requires expensive automation solutions: Lack of proper integration between legacy apps that drive core processes and newer solutions requires insurers to invest in automation solutions that help streamline processes
- Changing compliance requirements: Changes in regulations and compliance happen, and when they do it greatly complicates claims processing. In fact, sometimes the whole process might have to be completely overhauled. This can become a major drawback, especially for insurers who operate across different states and countries, each with its own set of laws and regulations.
- Supporting technologies: RPA and OCR are helpful in reducing manual labor overhead, speed up claims and streamline the back-end processing, but these technologies come with a hefty price tag attached, especially at scale. ZDNet estimates that the largest organizations plan to invest $10 million to $20 million annually in RPA systems alone.
Delivering average claims satisfaction levels is no longer enough – to stay competitive insurers must deliver outstanding experiences at every touchpoint.
Paper forms = horrible customer experience
In the eyes of the customer, claims experience is what insurance is all about. But it seems that more often than not, insurers are still getting it wrong. Not only do manual claim processes cost insurers millions in manual handling and data entry tasks, but the subpar experience during a sensitive claim process also cost them their customers.
- A survey of 8,000 auto and home insurance customers across 14 countries found that 41% of policyholders who had submitted a claim were likely to switch insurers within the next 12 months.
- 83% of the respondents who reported dissatisfaction with the way their claim was handled, said they had switched or planned to switch to another insurer. (Accenture)
Surprisingly, increased churn also takes place among those customers who were relatively satisfied with how their claim was handled. The survey results highlight that delivering average claims satisfaction levels is no longer enough – to stay competitive insurers must deliver outstanding experiences at every touchpoint. It is clear that in order to compete with customer-oriented disruptors such as Lemonade, insurers need to step up their game and provide intuitive, user-friendly and fully digital claims processes.
How EasySend reduces claims processing costs by up to 90%
When it comes down to claims process itself, a fully digital process boosts the speed of settlement and improves transparency – the two key contributors to improved customer experiences and reduced customer churn. At the same time, a fully integrated digital front-end ensures that the data is directly integrated into your internal systems, and error-rates are significantly reduced – reducing the processing costs and overhead.
Try our pre-built car claims component
- Launch a fully functional digital car claim process in days, that is fully responsive and looks great on any device
- Validate data in real-time – eliminate mistakes in your inbound data and streamline claims adjustment process
- Pre-filled data – Pre-populate fields based on data you already have, improving customer experience
- Integrate data directly into your legacy systems -Get data in a format that is compatible with your legacy systems
- Make changes easily with a drag-and-drop builder
- Improve customer experience – Analyze user behavior and optimize your car claims process with user experience in mind
- Optimize – use data to understand the customer journey and see the points where the company’s actions aren’t meeting the customer’s expectations
- Want to keep your PDF forms? Automatically generate an auto filled PDF document if you want to keep it for compliance or for your archives
EasySend is an enterprise-grade Drag-and-Drop builder that supports any insurance and banking use case with ready to use, pre-built components. With EasySend, you can transform your organization’s car claim process in days, not months and create a fully branded digital car claim process in a few clicks.
Optimize your car claims workflow with behavioral data and insights into customer interactions with your claims process. All the data is converted into a uniform format of your choice and directly inserted into and seamlessly integrated with your back-end systems.
Want to see what your company’s car claims process can look like with EasySend? Schedule a demo and find out!