The claims management software industry has begun a major transformation with the new normal shift of insurers now automating workflow and moving the mountains of paperwork off their desks and onto online documentation systems.
A roll call of the possible claim system solutions to increase workflow efficiency is currently read like a laundry list. Now more than ever before has a vendor’s strategy and ability to create measurable benefits peaked as number one on a system replacement priority list.
Benefits Of A Modernized Core System
Strategy and workflow improvements have become of up-most importance to reap the benefits of a modernized core system. A well thought out strategy in conjunction with a client-focused claim system will help to provide several benefits, including:
Minimizing costs is directly proportional to the profits of your company. Delay in claim settlement can cost your company badly. This is because the insurer will get a share from claim monitoring costs that customers pay with their premium. The amount your company gets is determined by the swiftness of your claims’ settlements. Have a strong method in place to increase automation. Most of the basic elements of the claims process are common to all the claims like first notice of loss (FNOL), segmentation and assignment, investigation, subrogation, etc. So, claims can be automated till the common point and the rest of the procedures can be customized at the final stages to speed up the process, save costs, and get high customer satisfaction.
Avoid fraudulent claims
Fraudulent claims are the greatest challenge to any insurer. Insurance companies have to settle claims quickly and at the same time, they must avoid fraudulent claims. In a hurry to settle claims, many companies succumb to fraudulent claims. Fraudulent claims start insurers are off on a negative and can be even more detrimental to small insurance companies, who operate with small budgets. Having a stable system in place to examine payment history, observe payoff trends, and identify claimants who are claiming frequently will help insurance companies identify and avoid making fraudulent claims.
What other top priority needs are on your claims system replacement list?