InsurTech – Fast Tracking Claims; Remember Your Government Compliance Mandates
Earlier this month, we attended and participated in the 2016 InsurTech Connect Conference in Las Vegas. It was a great event in that we were able to collaborate and connect with some brilliant innovators in the world of insurance technology. A couple of things resonated with us regarding the InsurTech paradigm; one, technology advances are created at lightening speed; two, government compliance mandates for the insurance industry are being ignored, or people are not aware of them.
The on demand generation expects to only click the button once (smart-phone, tablet, watch, etc.) and expects same day shipping and next day delivery of the product. This is quickly becoming the norm, and will speed up as the technologies and market capabilities improve. So how do your customers perceive the business of insurance? How can you deliver the on-demand expectations and meet, and exceed, government mandated laws and regulations for the business of insurance?
Recently, a friend of ours complained about a bad experience with their insurance company. It was noted that insurance companies were quick and efficient in taking insurance premiums, but not delivering on their promise to pay claims made us wonder. She was unaware that a claims organization spends more than 60 percent of their time in collecting data from various sources looking for questionable patterns. After that process is completed, only then is the settlement or payment made.
Insurance companies must be cautious about the discovered fraud patterns while recognizing that the genuine claims must be paid on time. A dilemma such as: “To Pay Or Not To Pay,” is mitigated with years of behavioral analysis experience, coupled with the collection, aggregation, and analysis of all of the required data. A claim paid too soon might have fraud throughout the information submitted by the claimants or policy holder. Settling this type of claim too quickly increases costs of the claim, which in turn, impacts your customers’ premium. On the other hand, a claim paid too slow might bring compliance, litigation, and customer churn issues. Can technology solve this problem? Can advanced analytics help? Yes!
The right technologies can solve the problem of data aggregation, big data solutions and tools, and various platforms and solutions for infrastructure, security, data storage, data transmission, and data processing. The real value in the insurance domain is specific algorithms that can intelligently comb through the data using the infrastructure, tools and technologies to separate the genuine and questionable patterns. This process will eliminate the fraudulent claim payouts, and ensure the fast tracking of claims. As a result, compliance mandates will be met, your genuine customers will be satisfied, which will result in the growth of your book of business