Improving the Claims Process and Reducing Cycle Times

Every time a policyholder files a property loss claim they’re giving insurance carriers an opportunity to create a positive customer experience. And with fewer customer touchpoints than in other industries, each interaction with an insurance company can carry a lot of weight for insureds.

But one element – speed – may be the factor your policyholders weigh most heavily. According to a 2022 Accenture survey of 6,784 home and auto insurance customers across 25 countries who had made a claim in the last two years, speed of settlement contributes to policyholder satisfaction more than other considerations. So why do faster claim life cycles matter so much to your policyholders, and what strategies can you use to achieve them without sacrificing accuracy or customer service? Let’s explore.

Long claim cycle times are often a pain point for adjusters and can cultivate dissatisfaction in policyholders.

Why Faster Claim Life Cycles Are Important for Carriers and Policyholders

Policyholders who submit property loss claims may be waiting for their claims to be resolved before making repairs or replacements. Slow claim life cycles can leave insureds feeling as though their lives are on hold. The impact of property loss may become a constant presence in their daily routines, serving as a persistent reminder of the prolonged process. This fosters a sense of dissatisfaction with the claims procedure. In commercial claims, a long, drawn-out settlement can even hinder business. Business owners may have to shutter their doors until they get word regarding what their carriers will cover. In the same Accenture survey, 26% of dissatisfied respondents said they changed providers, and 48% said they were considering a move. While the speed of settlement was not necessarily the only factor contributing to these respondents’ frustration, the study showed that the percentage of insureds dissatisfied with the amount of time their carrier or agent took to settle their claims rose as the time increased.

However, the importance of faster claim life cycles for insurance carriers goes beyond customer satisfaction. Reducing cycle times can also free up more resources so that your company can focus on innovating in other areas and lean into strategies for revenue growth.

Swift cycle times and ongoing communication are important factors in maintaining policyholder satisfaction.

Research from Nuvento also suggests that the cost of processing a claim combined with the settlement payment cost accounts for almost 80% of an insured’s premium. Therefore, reducing cycle times and decreasing processing costs can improve your company’s margins and allow you to adjust premiums to compete in a crowded marketplace without ceding profits.

How To Speed Up the Claim Life Cycle

 Now that we’ve underscored the importance of speed, how can you actually reduce cycle times? While there is no one-size-fits-all easy solution for improving the claims process, new and evolving technologies can certainly help. By auditing your current claims process and identifying steps or procedures that could be automated with the help of artificial intelligence or other emerging technologies, you can optimize your claim speed and ensure you’re keeping up with your competition. Automation can help you decrease wait times, and boost adjuster productivity by tackling labor-intensive, low-value tasks.

But your human partners matter too. Make sure you’re working with vendors who can get your adjusters accurate information quickly. This includes setting necessary appointments that fit the policyholder’s schedule and writing and delivering final reports in a timely manner. Often, the progress (and conclusion) of the entire claims process hinges on critical information gathered through investigation. That’s why a swift response from a claim partner can have a significant impact on the speed of the overall claims process. When your partners work quickly, so can your adjusters.

Periodically evaluating new technologies and determining if they are right for your insurance company can help you to continually improve the claims process.

Why Accelerating the Claims Life Cycle Doesn’t Mean Sacrificing Accuracy or Customer Service

Using technology to speed up processes doesn’t have to come at the expense of personal connections with your insureds; instead, it can actually enhance communication and customer service. Omni-channel communication via text, apps, or email may expedite responses by allowing policyholders to answer on their own time and eliminating the phone tag. Employing a robust database to store and categorize customer information can also allow your adjusters to see policyholders’ entire histories. Adjusters, in turn, can use this context to tailor their interactions with policyholders to their unique experiences, making them feel seen and heard. Using technology to automate and streamline processes can free up adjusters to do more of this person-to-person work.

The right claims partners should also be just as objective and accurate as they are fast. These vendors should be subject matter experts who not only get you information quickly but also continue to be available to answer questions or solve any issues that occur after an investigative report is sent. These experts can be invaluable resources for resolving policyholder inquiries, as well as any adjuster questions.

 Delivering Actionable Intelligence When You Need It

 Improving your property loss claims process to increase efficiency and decrease cycle times should include partnering with expert third-party vendors. It’s critical to find industry partners who can deliver the insights you need to resolve claims accurately while maintaining quick cycle times. With our operating brands, HVACi, StrikeCheck, National Fire Experts, Donan Engineering, and the Component Testing Laboratories, Alpine Intel is respected as the industry leader for our scale and track record of conducting expert, specialized, and accurate investigations. Submit an assignment to see how our expertise and fast cycle times can work for you.

Alpine Intel’s content is meant to inform and educate readers using general terms and descriptions. They do not replace expert evaluations that determine facts and details related to each unique claim.