The Long and Winding Road to Claims Resolution

By Raymond Mazzotta and Richard Vonesh, ReSource Pro —

It’s almost impossible to turn on the news and not hear about supply chain issues or inflation affecting everything from food, gasoline, and building materials to housing costs and automobile parts.

But nowhere is the impact of these disruptive winds felt more than in the claims operations of insurance carriers. Today’s claims leaders face a paradox: parts to fix vehicles cost more and are harder to get; building materials to repair damaged homes are also in short supply and rising dramatically in cost. While the time and cost of the claims journey are both increasing, the expectations of customers are running in the opposite direction—people want it faster for less.

Time for a New Map

Over the past two years, we’ve worked with clients who share a similar story: our claims counts are down; our staffing levels have remained level, yet claims morale is lower, and customer satisfaction scores are declining. What is going on?

It all starts with the process: While everyone is familiar with the headlines about the environment, carriers have been slow to change their processes to adjust to the changing environment. In some cases, they have invested in administration systems that were designed in a pre-pandemic economy. Want a better journey? Start with a new map.
People still make the difference: While insurers have implemented tools and technology that can triage and assign claims to the right resources for faster processing and settlement, claimants continue to look to talk to someone who can solve their problem or explain to them what is happening with their claim and when they should expect to be made whole. Self-service portals and chatbots do not lend themselves to these types of inquiries. The adjuster is still the key figure in creating a great customer experience for both the claimant and the policyholder. Have you adjusted your staffing models to match the environment they are now operating in? Were your models designed in the same pre-pandemic time frame as your systems? If so, it’s time for a new staffing model, as the people aren’t the problem.
Technology can be an enabler but not the answer: New technology needs to do more than just improve the customer user interface. It needs to help the adjuster manage the current environment and efficiently communicate with the customer. How are the investments you’ve made in technology improving the journey for both your customers and your people? Not sure? What were your expected outcomes? Were your expectations wrong, or did your assumptions reflect a different landscape?

As the forces shaping the claims journey continue to evolve, leaders need to challenge their assumptions, their expectations, redefine business optimization, and chart a new path to satisfying stakeholder demands amid a changing environment.

For more information on the claims ecosystem, read our recent research report, P&C Claims in 2023 and Beyond: Balancing Automation, AI, and Human Expertise.

Are you looking for a trusted partner to help you navigate the ever changing claims landscape? Give us a call.

About SMA, a ReSource Pro company

At Strategy Meets Action, our clients advance their strategic initiatives and accelerate their transformational journeys by leveraging our forward-thinking insights, deep vendor knowledge, and vast industry expertise. Strategy Meets Action is an advisory firm that works exclusively with insurers, MGAs, and vendors in the P&C market. For more information, visit www.strategymeetsaction.com.

About ReSource Pro

ReSource Pro brings integrated operational solutions to insurance organizations to improve growth, profitability and insurance outcomes. Headquartered in New York, ReSource Pro’s global service centers address client operational needs around the clock. Recognized as an industry thought leader and listed as one of Inc. 5000 Fastest Growing Private Companies annually since 2009, the company is renowned for its focus on innovation, service excellence and trusted partnerships, and its unique productivity platform for insurance operations. More than 5,000 ReSource Pro employees provide dedicated support to hundreds of insurance organizations, consistently achieving a +97% client retention rate over a decade. For more information, visit www.resourcepro.com.

SOURCE: Strategy Meets Action (SMA)