What do we mean when we speak about “Digital Claims Management”? Insurance Claims Management is not a new practice. The first insurance policy was passed more than 100 years ago. What changes over time is the process of managing insurance. Particularly insurance claims need to be manage mindfully, knowing that whatever the claimant is claiming, it is not a nice situation.
There are many different ways to handle insurance claims but in order to make things easier we’re going to distinguish between traditional models and digital models. So in this article we are going to go in deep about the differences between traditional and digital and why it is important for as many people to change to the digital model, as possible.
The Traditional Way to Handle Claims Management
The traditional way to handle claims management involves adjusters communicating with claimants after the claimant files a claim. Then the agent is prompted to look for evidence, come to the place where the claim originated and gather proof. The claim, once submitted to the insurance company comes and goes in paper forms. Each form must contain information about policies, expiration dates and so on. Every paper that needs a copy must be printed more than once. Every time something changes with the claim the claimant needs to be informed whether that’s via phone or email.
Every piece of information must be input manually with a computer to the insurance company’s database.
As you can see the traditional method is time consuming, prone to error and inefficient.
The Way to Do Digital Claims Management
A claims management system is software that an adjuster or claims handler (or an automated process) uses to gather and process information regarding the policy and coverages, the claim, and the claimant. It also evaluates and analyzes the circumstances of the claim.
Claims management software is often powered by smart technologies like Artificial Intelligence, and Data Analytics enables insurers to enhance the customer experience while reducing costs and turnaround time. It facilitates straight-through processing, quick settlements, and rule-based auto-adjudication.
In the insurance industry, this type of software enables eliminating the operational inefficacies and legacy issues, also reduces maintenance and training costs, and, of course, enhances the customer experience.
There is no need to manually input information which eliminates the error margin that come with this practice. It also reduces communications because it centralizes the channel into the claims management system. So if broker or adjuster wants to communicate with the claimant is easy as operating the RMIS.
Claims Management systems also provide the ability to benchmark claims management against other companies and against your own performance. At the same time, you can manage policy, expenditures, compliance and even get to an acillary services market for even more efficiency.
The Benefits of Digital Against the Traditional Model
So, to sum up, here are some of the main benefits of having a digital approach to claims management.
- Lower Turnaround Time: Claims management software brings down the turnaround time. Powered by emerging technologies such as Artificial Intelligence (AI) and Machine Learning (ML), it enables businesses to drive productivity and reduce claims processing time. At the same time, Technology enables insurers to process and analyze claims information at a larger scale with easy-to-read reports and dashboards. By smartly approaching data extraction and analysis, insurers can speed up claims processing. Lastly, insurance claims software automates several time-consuming and repetitive processes. Thus, businesses can handle various claims-related workflows without the need for human intervention. It also updates information to mirror the latest changes in statutes, rules, and regulations.
- Enhanced Productivity: Automated insurance claims management software not only enables businesses to enjoy time and cost savings but also helps their staff carry out their responsibilities more efficiently. By automating the claims process, insurers can reduce employee burden and enhance accuracy, thereby avoiding costly mistakes. Several insurance companies already use automation, whether for administrative duties like scanning paperwork or to streamline end-to-end operations. Automation and data analytics technologies supplement and enhance the capabilities of claims adjusters, administrators, risk managers, claims accountants, fraud specialists, agents, brokers, and other professionals. Technology and digital tools liberate companies from time-consuming and low-value operations while also assisting them in detecting and preventing fraud when settling claims and processing payments.
- Centralized data: Having Claims, vendors, insureds and all their documents in one place, avoids the time-consuming task of going back and forth manually, saving time and money in the process.
- Accuracy: Software can detect errors much more easily than the human eye. This is due to integrated Machine Learning and Artificial Intelligence that present accurate information to easily run reports and complete views of status situations.
Why Terra Helps Enhances Digital Claims Management
Terra encapsulates a wide range of technology and solutions to to help adjusters and brokers stay one step ahead of the competition. Terra provides the ability to benchmark, manage insurance policies, manage ancillary services via a service marketplace, journaling in claims to state changes and much more.
Tools such as claims administration have made it possible for insurers to increase productivity and improve their whole claims processing chain. By automating the claims process, insurers can easily handle a variety of activities and procedures.
Claims management software also enables insurers to focus on complex claims and improve customer experience. So come take a look at Terra for yourself and see its capabilities. Book a demo today and have a conversation with our team