170 million expected to be lost due to claims mismanagement

Cath Sandoval
Copywritter

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The most valuable assets in the insurance industry are their insureds. 

Communication, empathy, understanding, and support are necessary at every moment and are crucial to developing a long and successful relationship.

Nevertheless, when we talk about an industry as traditional as the insurance industry, we observe a still incipient digitalization that began accelerating a few years ago, driven mainly by the need to survive the COVID-19 challenges.

The carriers’ transformation still has a lot of room for improvement as there are pains at various stages in the value chain. Some of the most important are:

  • Little or no communication with the insured.
  • Tedious and lengthy processes.
  • Lack of interoperability among all services.

What is the impact?

All of this triggers a wave of bad experiences for the policyholders, which could put a considerable amount of money at risk. According to an Accenture report, about 170 billion dollars could be lost in insurance premiums over the next five years and about $160 billion due to inefficient underwriting processes.

The report is based on surveys of over 6000 carriers from 25 countries, more than 100 claims executives from 12 countries, and more than 900 policyholders from the United States.

Let’s talk about numbers

The Accenture report showed that 31% of the claimants were not fully satisfied with their home and auto insurance claims handling experiences over the past two years. Of that 31%, six in ten referred settlement speed issues, and 45% had problems with the closing process.

Dissatisfaction with the claims experience is a significant factor in convincing customers that the best they can do is to change their insurance company. 30% of the dissatisfied claimants said they had changed their carriers in the past two years, and another 47% said they were considering it.

The customers who declared dissatisfaction represent a significant amount of up to $34 billion in annual premiums or up to $170 billion over the next five years.

So what can you do about it?

Artificial Intelligence has the capability of improving the claims process. Together with automation and data analysis based on Machine Learning, you can impact all the chain positively: 

  • A reduction of the operational costs.
  • Claims frauds detections.
  • Damage evaluations.
  • Losses estimation.
  • Reservation, adjustments, and much more!

LISA Claims is an end-to-end, low code / no code solution that can help you deliver the fast and simple claims experience your customers need. In the ebook “Boost your customer satisfaction with LISA Claims“, you will see how we can help you! Download the ebook now.

Finally let’s quote our CEO, Gino Bustamante that says: “Crashing the car, facing a fire in our home, or having an accident, are situations that involve human feelings and emotions, where we seek the support of our insurance through an agile and comprehensive response. Artificial intelligence has become a great tool and an effective solution for many people since it provides an agile service, 100% focused on customer satisfaction.

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