By Jason Thackeray · January 13, 2022
7 minute read

How insurtech can take the stress out of making claims

Insurtech and Innovative Insurance

Insurtech can take the stress out of the claims process for your customers just when they need your support the most. Find out how FintechOS can help. 

Key takeaways 

  • Insurtech can support your customers when they need it the most 
  • Our platform can take the stress out of the claims process 
  • To learn more about our Northstar insurance platform, book a demo 

Sometimes, when I talk to people I’ve recently met and they ask me what I do, I get the feeling that neither of us quite sees the value in working for an insurtech company. After all, we’re not key workers and insurance hasn’t always had a good reputation with the public.  

However, when you think about it a bit more deeply, you realize that a symbiotic relationship between technology and insurance can genuinely help people at the most stressful times in their lives. 

When the worst happens… 

Imagine tragedy has struck. Maybe your house has flooded and you need to move to alternative accommodation. You’re pretty sure you’re insured, but you don’t have the policy documents to hand.  

Thankfully, the one item you always have in your pocket – your mobile phone – will allow you to confirm your insurance and register your claim online. You’re logged into an app, so you don’t need to confirm your policy number. You can report the loss in seconds and return to salvaging your property, secure in the knowledge that your claim is being processed. 

Perhaps, on the other hand, you lost a loved one. Here, you are more likely to have policy documents to hand for the death notification, but you’ll still be upset and taking as much effort and hassle out of the process as possible is key. Speaking to a sympathetic claims advisor may not make the situation any better, but at least it can avoid adding to your distress. 

With insurtech, however, the process can be much quicker and easier. No waiting on hold, no providing irrelevant information, and no sending in documents. Bereavement counselling or solicitor services can be arranged automatically without further calls. Ultimately, automation allows the customer to get off the phone and back to processing their grief. 

Maybe you’ve been in hospital. In the UK, where I live, we’re lucky enough to have the National Health Service, who have done so much during the pandemic. Many here are still covered by private health insurance, though, and that number is far greater in other countries.  

Wouldn’t it be great if you could register a claim against your insurance for the cost of treatment from your hospital bed in one seamless, mobile journey, and have it paid out immediately? 

When you need it most… 

For a customer experiencing a loss – financial or personal – anything that takes stress out of the situation is more than welcome. What do you need to do in order to meet that expectation from the customer? 

You need a robust digital journey for customers to register claims themselves quickly and easily, but you also need a back-office system to match that journey. Your internal system needs to be as adaptable as your external one is.  

Your staff need their office tools to support them in being sympathetic to distressed customers. Their tools need to fulfil immediate customer needs, but also prevent fraud. They need to collect rich data for underwriters to improve both the cost to the consumer and the type of cover offered on a Quote & Bind journey. 

Is all that even achievable? 

A modern, flexible claims system… 

Using a low-code approach, FintechOS is able to work with insurers or third-party administrators (TPA) to help create just the kind of experience your customers need.  

We recently worked with a Tier One aggregator and a claims TPA to create a modern and flexible household claims system. Because fields can be quickly added and removed, we’ve been able to prototype the system in line with a typical first notification of loss (FNoL) script.  

Once the customer’s identity has been confirmed, the system allows the handler to take minimal information without the full policy details to make the process as simple as possible. After the customer has finished this low-effort report, a handler can work on the claim administration alone, while the customer goes back to dealing with their loss. 

On the other hand, perhaps it’s a small claim for an opportunistic break-in. If the customer has sat down with their policy documents to report their claim in their own time, then full details can be taken quickly in one sitting in an online process, without handler involvement. Some of these can even be settled immediately. 

Optimizing the claims process… 

Ultimately, the claims process is simple, and the same for all types of insurance. Whether it’s household, motor, personal, life, health or accident insurance, your claims process needs to follow a simple formula: 

Notify 

The process of reporting a claim needs to be as simple and stress-free as possible, so you can be sure you’re supporting your customer when they need it most. 

Our platform allows you to gather the data from the customer as easily and quickly as possible through automation. 

Assess 

Once reported, you need to quickly and accurately confirm the claim is valid. That means making sure all the data is in the right format and accessible to your underwriters, but also stored securely.  

You also want to triage the claim, so it is managed in the right way. After all, you won’t deal with a simple breakage of glass the same as you do a large liability or personal injury claim. 

Our system is flexible enough to create a balance between getting you the data you need and reducing your customers’ time investment. 

Reserve 

Once you’ve validated the information, you need to be able to reserve the funds ready to pay out to the customer. The better your data is, the more accurate your budgeting can be. 

Our system provides your underwriters with accurate information that’s easily accessible, so the correct funds can be reserved. 

Settle 

Automation will allow your system to identify low-risk claims based on rules you can set yourself. This means small, valid claims can be paid out automatically, without taking up your team’s bandwidth. 

Our low-code system allows you to set which claims will be paid out automatically under what criteria, and to change this yourself at any time. 

Pay 

The final step of a simple, seamless process for your customer is receiving their payment quickly.  

Our system can make payments for you automatically, as soon as they’re authorized. 

The low-code approach… 

Starting with a claims accelerator that supports all of these processes, with the flexibility to quickly add, remove, move, and expose data fields, you can create an amazing customer journey, without relying on technical teams. The customer can get help – and their money – as quickly as possible.  

On the other hand, you can weed out the small number of fraudulent claims and collect underwriting data that saves you money and time. This empowers you to offer cheap insurance over multiple distribution channels.  

You’ll have the choice to either let your customers self-serve online or call in to have the claim registered by a handler. Your handlers can even be supported by chatbots to assist the customer with simple tasks, so they only have to get involved when needed. When it supports the customer, they can even view their screen and fill in the form for them. 

Together, all these features can take the stress out of reporting a claim, just when your customers need it the most.  

To learn more about our Northstar insurance platform, book a demo. 

*

About the author:
Jason Thackeray is a FintechOS presales consultant specializing in insurance and our Northstar Platform. You can reach him on LinkedIn.

Share this article with your connections