• Mohamed Bashir

5 Challenges of Handling Claims Management in Motor Insurance

Companies face several challenges when it comes to claims management in motor insurance. Claims processes are becoming more complex, forcing insurers to adopt new technologies. At the same time, the claims workforce is changing, with more employees working remotely or using innovative technologies to handle claims.


To keep up with these changes, insurers need modern solutions that can help them manage claims quickly and efficiently. This blog post will discuss the most significant challenges insurers face regarding claims management and how modern technology can help overcome them.


The Outlook on Motor Insurance Claims


Because of the advent of technology, insurance companies must face the increasing complexity of claims. Customers now expect their claims to be processed quickly, with little to no inconvenience.


In addition, insurers have access to large stores of comprehensive data, with further adoption of connectivity in vehicles, in the case of telematics, onboard computers, and other types of IoT devices. Although this data equals better decision-making and reduced risks for insurance companies, a daunting dilemma approaches.


1- Claims Processes with Multiple Touch Points and Massive Amounts of Data.


Carriers must learn to handle the sheer number of touchpoints and data processing regarding modernizing claims management. To streamline claims processes, insurers need a centralized platform to manage all the data involved in a claim.


This platform must integrate with different systems, such as policy administration, billing, and external data sources, such as police reports, and GPS data. Only a centralized insurance platform designed specifically for claims management can provide the scalability and flexibility needed to meet the challenges of the modern insurance landscape.


2- Lengthy Turnaround Times.


To meet these customers' higher expectations, insurers need to find ways to speed up the claims process. For example, many insurers use chatbots to handle First Notice of Loss (FNOL), allowing customers to report their claims 24/7 without waiting for business hours. In addition, customers can use chatbots to answer questions and guide them through the claims process.


3- Changing Customer Needs.


As customers expect to track their claim status in real-time, insurers need to provide a self-service portal where customers can log in and view the status of their claims. The portal should also allow customers to upload documents and photos and contact their claims adjuster.


The COVID-19 pandemic forced a drastic transformation in the claims process; a J.D. Power survey found that insurance carriers' acceptance of photos and videos for settling claims grew from 61% to 68% during the pandemic.


4- The Proliferation of Emerging Technologies.


However, if carriers plan to continue down this path, they will need to find ways to keep up with emerging technologies. For example, AI and Machine Learning can streamline the claims process.


By using AI and machine learning, insurers can create a decentralized network where all stakeholders, such as policyholders, claims adjusters, and providers, can access claims data. This allows for more transparent and efficient claims.


In addition, Insurtech vendors are creating unproven solutions that insurance providers will have to evaluate and adapt or risk falling behind. To stay ahead of the curve, insurers need to partner with Insurtech companies and determine what will and will not work best.


5- Changing Claims Workforce.


As the workforce continues to evolve, insurers need to provide a claims process that is digital and user-friendly. In addition, talent must learn to adapt and take on broader responsibilities; claims professionals need to distill in-demand skill sets into a hybrid experience that improves customer service.


The Impact of Maintaining Legacy Claim Systems.


Most claim management challenges are because many insurers are still using legacy systems. These systems cannot handle massive amounts of data. As a result, insurers struggle to keep up with customers' expectations. Often Claims Managers have to intervene and make changes to legacy programming leading to:


● Decreased customer satisfaction

● Higher expenses

● Claims accuracy will suffer since carriers must outsource claims processes to specialists, and oversight is lost.


Insurers need to replace their legacy systems with modern solutions to optimize operations and improve customer satisfaction. Steadily, insurance companies are doing just that; insurers realize that utilizing Artificial Intelligence in auto insurance can lower expense ratios, enhance the customer experience, and drastically improve claim management.



Motori - A Digital Platform for Insurance Companies


Digital applications, AI-based technology solutions, or "Machine learning," is a new era of insurance where software predicts risk. This technology can identify fraudulent behavior and automate pricing and underwriting.


Motori is a digital platform for insurance companies that utilizes machine learning and artificial intelligence to transform the way insurers handle claims. Motori uses API-Enabled technology to integrate into the carrier's core services, changing their workflow thanks to its seamless design.


Like most AI-based platforms, Motori can benefit insurance providers in many ways; however, it can best automate critical claims tasks like:


Underwriting - specifically focusing on risk score, and underwriting risk

Fraud detection - using anomaly detection and pattern recognition through machine learning

Customer communication - through the use of AI-powered solutions.


Conclusion


Overall, the insurance industry is under immense pressure to modernize. As the insurance industry looks to the future, it is evident that technology will play a crucial role in meeting these needs. Insurance companies that utilize modern solutions can handle the challenges of claim management.


Motori is at the forefront of this insurance technology, utilizing AI and machine learning to automate essential claims tasks. To learn more about how Motori can help your insurance company meet the needs of today's customers, contact us today.




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