Tackling data chaos in insurance

Eileen Potter, VP of marketing insurance at Smart Communications.

Insurers have always had the mindset that the more data they have, the better off they are. The logic here dictates that as the data environment expands, it can be harnessed to improve personalisation at every policyholder touchpoint,

Over 64 zettabytes (ZB) of data is generated on record, and this number is growing at an astounding 28% compound annual growth rate (CAGR). On top of this, an average claim file typically includes gigabytes of supporting content. This alone poses significant challenges to customer communication management (CCM) systems. Data chaos arises when unpredictable internal and external changes hinder the implementation of the customer data strategy. If this isn’t properly handled, data chaos can cause process overloads, resulting in slow communication and reduced customer satisfaction.

How can insurance companies deliver consistently good customer communications in this data chaos?

Scalable cloud solutions for enhanced ease and security

Cloud solutions are a great way to manage insurance data and reduce data chaos. They are fast to implement and easy to integrate into a technology ecosystem, making them an attractive option for insurers. Cloud solutions have the scalability to efficiently handle and store large amounts of data. By implementing cloud solutions, companies can keep customer data safe while enhancing operations efficiency and lowering overall costs. This is because they have thorough security measures, automated backups and seamless data integration.

Cloud-based CCM solutions deliver personalised, multi-channel customer communications using cloud-stored data. This creates communication responses that utilise customer-specific data history, drawing on integral previously shared data. Overall, it deepens existing customer relationships and increases trust.

Improve claims processing speed with generative AI

Insurance claims require meticulous verification and extensive documentation, especially for more complex cases. To augment and speed up decisions, insurers can harness the power of gen-AI, which can be implemented to decrease errors, increase efficiency and expedite the claims processing workflow.

Beyond this, gen-AI can reduce the time for manual review by creating detailed reports and summaries. It can detect and identify anomalies and patterns that human analysts could miss, making these reports more accurate and enlightening. This is the first step towards a more personalised and efficient communications future.

Gen-AI can also improve overall customer satisfaction, as it facilitates faster decision-making which speeds up the claims process. By identifying anomalies and patterns, gen-AI ensures better accuracy and drives a faster time-to-settlement. This improved customer satisfaction increases the likelihood of policy retention, and also has the potential to drive increased new business, since policyholders who are satisfied with their claims experience are more likely to recommend a carrier to others.

Integrate CCM to enhance operational efficiency and customer experience

It’s essential that policyholders receive relevant information at each stage of a claim in a timely manner to minimise confusion and enhance the overall customer experience. CCM systems can provide this to insurance companies by delivering consistent, personalised messages across multiple channels. Modern CCM also streamlines document management by reducing the volume of manual tasks necessary for both the initial document creation and for any customisation needed to an individual recipient, ensuring consistency and compliance, as well as reducing internal workloads.

CMM solutions give insurers insights into customer interactions and preferences, enabling them to personalise their services to meet the specific needs of their customers, increasing efficiency while improving customer satisfaction. In a competitive market, these qualities position an organisation for success and growth. And, while more customers equal more data, these insurers will be well-equipped to deal with that.

What does the future of data look like in insurance?

Data chaos will undoubtedly continue to challenge the insurance industry, but customers won’t let that be an excuse for a poor experience. Organisations can boost operational efficiency and consistently deliver high-quality service to their customers by minimising manual tasks and enabling personalised multi-channel interactions. It doesn’t look like the increase in data volume will slow, so to stay ahead, insurers need to future-proof their operations and focus on creating a robust technology ecosystem that can help streamline claims management and take advantage of the asset that data actually is.

Image: Provided by RLYL.

Guest Post This post was created just for Claims Media by a guest contributor.