New technological developments are seeking to resolve three of the biggest headaches in insurance: improving customer service, reducing the cost of handling claims, and detecting fraud.
In their ongoing efforts to be more competitive and profitable, insurance companies are undertaking several initiatives to improve their claim-handling processes. Foremost among these is improving claim-handling efficiency. The claim-handling process is expensive, accounting for around 20 percent of the total costs of an insurance company.
Companies may strive to decrease these costs by offering fast-track claim handling. By settling 50 to 80 percent of claims during initial telephone conversations, insurers can avoid investigations and the gathering of additional information, as well as expensive follow-up contacts. In some cases, 60 percent of the phone calls into claim-handling centers are from customers seeking information about the status of their claims. Companies that allow customer self-service can further reduce claim costs by having insureds file their own claims via the Internet and handling these claims instantaneously, often without human intervention.
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