Digitising the insurance claims settlement process

Insurance Claims Settlement

It should come as no surprise to anyone that the digital revolution train has long left the station, and woe-betide any company who has not yet jumped aboard. Customer interaction with digital platforms has extended well beyond the use of app-based shopping and social interactions, indeed it is now possible to do everything from order repeat prescriptions to turning off your washing machine via your mobile device.

So how do insurance providers ensure they are not left on the platform? Historically, innovation within the insurance market has been tricky due to the complexity of the customer claim journey and many providers have been slow on the uptake. However, with digital-based interactions now the only choice for many it is vital that they catch-up and look to innovate as quickly as possible.

Recent research reveals that 96% of customers will take a digital route if it’s open to them. That’s more than just a compelling statistic - that’s an out and out transformation. McKinsey and Company preach the existence of a triangle for customer satisfaction within the insurance market that can lead to greatness if honed to perfection. According to their work, bringing together the holy trinity of customer experience, efficiency and effectiveness can ultimately breed loyalty and improved customer satisfaction. Luckily, according to research by Accenture and Oxford Economics, 90% of insurers have a long-term plan to address their technological innovation.

One such way to reach this promised land is to address ways to digitalise and innovate the customer claim journey.  According to the research by Accenture and Oxford Economics, 90% of insurers believe that online or app-based will be the platform of choice in the next few years for insurance purchases, meaning that optimising your online presence for mobile and other smart devices has become ever more important. When provided with an effective online channel, it is predicted that 35-50% of customers will immediately take this route for connecting with their insurer, both significantly reducing call centre demand and increasing customer satisfaction. In fact, according to Accenture and Oxford Economics, 80% of insurers predict that half of customer interaction will be handled by virtual assistant within the next five years and 47% believe that AI will have the biggest impact in claim processing within the next three years.

The digitalisation of the insurance world will not just span customer facing, but also back-office processes. McKinsey and Company suggest that in order to provide the best customer experience insurers should be addressing ways in which effectiveness and efficiency can be improved behind the scenes, looking not just at the standard ‘touch points’ but at the claims process in its entirety.

Blackhawk Network focus on the behind the scenes elements and specifically the support for digitising the actual claim settlement. There is no longer the need to process claims using expensive in-house processes like BACS or cheque payments. Today you can simply offer claimants a selection of digital ecodes from well-known high street stores, providing a to-the-penny e-code for a replacement product instantaneously when the claim is approved.

By using our digital claims settlement platform, not only can you be safe in the knowledge that your claim settlements can be tracked, processed and reported in real time, but you can also rest assured that your costs for processing claims will be a fraction of what they are today. Seems like a no brainer especially when you add the positive impact instant claim settlement has on your overall customer experience.

If you’d like to find out more about how Blackhawk Network can help you step into the digital future click here to speak to one of our team.