The Insurance Claim Process in the Digital Era

Introduction

Smartphone usage is continually on the rise, which is giving more people easy access to information and applications. Perhaps unsurprisingly, the need for constant connectivity and convenient on-the-go technology has found its way to the insurance industry. Consumers now place higher expectations on insurance providers, from 24/7 customer service to accessing insurance claim information immediately on their smartphones.

The 2021 Levvel Insurance Consumer Report analyzes how insurance companies can better update outdated technology to serve their customers. It found that 60% of policyholders prefer to handle claims either in-person or over the phone. Yet policyholders also demand transparency throughout the insurance claim process, which is easier to provide via a mobile app.

This only reinforces the fact that providing personalized, data-driven customer experiences is a balancing act that insurance providers must carefully navigate. Below, we discuss some of the ways technology can enable insurers to meet—and exceed—the insurance claims process and customer expectations across different generations.

The Modern Digital Claims Process

Compared to other industries, the insurance industry is behind when it comes to digital transformation. Insurance services span a wide range of ages and preferences, making it difficult to adopt an across-the-board digital strategy to meet customer expectations. Companies must balance the digital-first demands of one generation while also satisfying Baby Boomer and Gen X’s preference for more human relationships.

Levvel’s data points to a strong appetite among policyholders for a full-service experience within an app and online, where most tasks can be completed digitally. This trend is particularly driven by Millennials who want better digital processes. But what exactly do these processes look like for insurance providers? They can include:

• A more efficient claims tool within the app
• Options for secure data sharing and data privacy
• 24/7 In-app chat support capabilities

These are only a handful of examples of how the digital customer experience can be enhanced to meet the needs of Millennials, the largest consumer group, while still offering the personal touch preferred by Baby Boomers and Gen X policyholders.

How Digital Transformation Helps Both Providers and Consumers

A robust online and mobile app with personalized, data-driven features—such as easy access to customer service and policy information—benefits both the consumer and the insurance company.

Consumers can choose to engage with the insurance company in a multitude of ways, whether it’s communicating their concerns through a chatbot on the web, accessing an insurance agent’s contact information via their smartphone, starting a claim within minutes of an accident via the mobile app, or even adding more insurance products to their portfolio with the touch of a button.

For most insurance companies, using specialized technology results in a faster, more efficient insurance claims process and allows experts to quickly connect with policyholders. With this technology, consumers have the option to resolve their own questions using self-help tools instead of engaging with a live insurance agent, whose role has evolved in recent years. When technology makes it easier for consumers to update their policies or communicate their needs, the result is greater customer loyalty.

Staying Competitive Through Technology

Demand for digital tools is only expected to increase. Insurance companies can use this time now to build a robust catalog of digital tools to meet the needs of a wide range of customers. The companies most successful in this initiative will remain competitive in the market.

For more details on how to approach digital transformation in the insurance industry, download the Levvel 2021 Insurance Consumer Report.