How technology can reduce turnaround time for insurance claim settlements
Claims reconciliation and performance are the most important aspects of any type of insurance product. Insurance has largely been guided by the traditional model where claim settlement is a long and tedious process for both consumers and insurers.
Issues related to risk and fraud make it very difficult to make quick and error-free decisions, resulting in significant delays in settlement. About 38% of health insurers reportedly processed claims in an average of five business days. There were reports of further delays in the settlement. Covid was big evidence of an impending health crisis in this country.In life insurance, there have been cases where beneficiaries didn’t even know they were life insurance trustees.As such, claims resolution continues to be a key challenge in this category affecting both consumers and insurers. Technology integration is empowering today’s consumers with operational simplification, risk-based personalized automated solutions, risk and fraud intelligence, embedded distribution and sales intelligence, and increasing insurance penetration in the country. , are needed immediately to meet changing consumer insurance needs.
Insurers use artificial intelligence and data analytics to create accurate individual risk profiles. All of this makes the underwriting process seamless and the risk profile can be quickly verified at claim time, significantly reducing claims turnaround time. That is why more and more insurers need to join the tech train to solve the country’s entrenched claims problem.
