Transforming the Insurance Claims Process: Real-Life Examples
Blog: Bizagi Blog
Claims is the point of truth in an insurance journey. It’s vital that insurers get it right. Companies including Lemonade, Youse, and Nexible have rejected slow and manual quote and claim processes in favor of fast digital applications. This has elevated the expectations of insurance customers across the globe.
The importance of a claims process experience to customers, and its administrative burden make it a popular choice when prioritizing transformation projects. It’s the first place to look to increase operational efficiency and reduce costs while also improving the customer experience.
Here are three examples of how insurance companies have transformed
their claims processes and the benefits this has delivered for both customers
Improving customer service
Customer service is a vital element of insurance, with 69%
of insurers rating customer experience as ‘very important’ within the claims
department. Having a smooth, efficient customer experience helps to build
trust, which is a key factor when it comes to selecting an insurance provider.
BNP Paribas Cardif Japan, part of the eighth-largest bank in the world, began their process automation journey with the claims process in their mortgage insurance. It has a strong social element and sits at the heart of the insurance journey, so was a priority process. The primary focus was to simplify the claims process using Bizagi to automate the validation, assessment, and the approval of a claim.
“For us, claims is the real moment of truth and we want
to be a company that is healthy and profitable, but also known as a trusted
partner to our customer base. We will be there to service them when they are in
the unfortunate position of making a claim,” said Jose Antonio Fuentes,
Executive VP of Partners.
The simplification and automation of the process has saved employees up to two hours every day. Automated data entry has also improved the quality of information throughout the process. This has contributed to a significant reduction in the time to deliver claims, improving customer experience, and meeting claims payment regulation deadlines.
Enabling remote working for employees
Organizations have known for a while now that their manual,
paper-based processes need to be digitized. This issue became more apparent
than ever in 2020 when the COVID-19 pandemic forced offices around the world to
close. Employees began working from home and paper could no longer be passed
from person-to-person in the office.
Global insurer SCOR’s UK team needed to work remotely due to
COVID-19, so needed a new way to execute its manual, paper-based claims
assessment process. They needed to quickly digitize the process in order to
carry on working efficiently and keep customers satisfied.
The initiative was completed from design through to deployment in just six weeks. This was all completed remotely, so nobody actually met in-person throughout the project. They used Bizagi to enable an agile working environment to support fast deliveries and introduced automation to eliminate manual, non-value-add tasks.
“I’m massively impressed with how quickly this has been turned around, that’s just blown me away,” said Mata Veleta, Head of IT Innovation and RPA. “This project was a very good demonstration of how far and fast we can go when we work the agile way together.”
The process is now fully digitized, with the team seeing 80% increased efficiencies across all administrative tasks within the first three months of use. Following the UK team’s success, SCOR’s claims process is now being digitized globally across nine different macro-markets.
Lowering the cost per claim
While delighting customers is a key element of the claims process, insurers also need to ensure that it cost-efficient. It is the key point where they can lose money. Automation can help to lower the cost per claim by reducing administration and ensuring accuracy to help the process to be as efficient as possible.
Universal, the leading insurer in the Dominican Republic, was looking to
improve its vehicle insurance claims process, which had become increasingly
complex due to disparate systems, leading to a lack of transparency and inefficient
Using Bizagi, they integrated their disparate systems to bring end-to-end visibility to the claims process, and introduced automation to reduce operating costs and aid employee productivity. The integrated process means that when Universal carries out the inspection process, the information is recorded in the Bizagi platform and the repair shop can order directly from there. This has led to a 30% reduction in parts returns, saving both time and money.
“Bizagi has allowed us to increase the amount of cases within the growth of the portfolio without having to increase the staff at the service points. Definitely, we have been more productive and efficient with Bizagi,” said Alejandro Pimentel, VP Claims.
Ultimately, Universal has doubled the number of claims processed, but only had to hire one additional FTE, contributing to a 45% increase in revenue for the insurer.
It’s more important than ever for insurers to digitze operations to keep up with insurtech disruptors. Download our ebook, Transforming Insurance, to find out more about how to tackle the changing insurance landscape and future-proof your insurance offering.