Several previous Insurance Insights blogs have already touched on the digitization of almost every transaction around the world, impacting and influencing every consumer touchpoint. When it comes to shopping, customers want fast, easy, and convenient transactions, from how they shop in retail spaces to how they manage their bank transactions. So it should be no surprise that consumers are looking for the same type of experiences when it comes to their auto insurance. And that includes the way their claims are processed.
LexisNexis Risk Solutions interviewed 24 auto insurance executives to capture their thoughts on automated claims handling, with an eye toward transitioning to touchless claims. Through this type of claims handling, no claims adjuster or insurance carrier employee is involved in the claims process at all. As such, technology is used to report the claim, capture damage or invoices, run a system of audit and communicate with the customer electronically. If the claim meets approved criteria, it is automatically paid without human intervention.
Our infographic below illustrates some of the findings. For example, carrier respondents who are utilizing Virtual Claims Handling are experiencing 80% shorter cycle times than carriers who are using Traditional Claims Handling methods. Additionally, all respondents believe telematics data will be used in claims investigations within the next 5 years.
Our 2017 Future of Claims Study: Touchless Claims whitepaper takes a deep dive into the results – you can download the study here.