Insurance Customers Know What They Want, So Why Aren’t Insurers Listening?

Insurance customers don’t have complicated needs. They want a selection of reasonably-priced policies, access to clear and accurate information, and hassle-free interactions with knowledgeable employees. When they’re filing a claim – often a period of great stress – they expect their insurance providers to reduce their burdens and anxiety, not add to them.

The harsh reality, however, is that most insurers are still failing to create the positive, consistent experience that customers crave. According to Accenture, less than one-third of insurance customers are satisfied with their current providers. While they may be adequately delivering on functional elements like quality of products and risk reduction, they are failing to make customer interactions simple and easy.

Take Justin’s experience as an example. Like most Americans, Justin spends a lot of time in his car. On top of commuting, he drives 3 hours several times a week to look after his father. When his car was side-swiped by another driver, he had no choice but to pay out-of-pocket to immediately fix it. Justin promptly mailed in his claim and accompanying paperwork, but it took him over 6 weeks to get reimbursed. Justin’s already overstretched budget couldn’t afford any more strain, and as soon as he was able to, he left for another insurance company. (Learn more about Justin’s story here.)

According to a Forrester study, more than 30 percent of customers who endured a bad claims experience switched insurers within a year of the incident. In contrast, McKinsey found that over the last five years, U.S. auto insurance carriers with best-in-class customer service have generated two to four times more new business growth and 30% higher profitability than less customer-focused firms.

In a fast-changing and competitive industry, insurance companies must put customer experience at the center of their business strategy, which starts with automating the back office.

Underwriting or claims processing involves pages of documentation (policy applications, authorization forms and supporting emails, PDFs, scanned images, and more) that must be identified, classified and extracted for use in downstream systems. Taking even a few extra days – or worse, weeks – to process a life insurance application or claim will result in customers opting for competitors with modern systems that can respond instantly. (In the case of Justin, once his paperwork was received in a central mailroom, it was manually indexed to a team of data keyers who had to go field-by-field to locate and enter the necessary info into the system of record.)

According to McKinsey, more than half the time spent in the insurance workplace involves manually collecting and processing data – two tasks with a high potential for automation. With Machine-Learning powered automation, organizations can automate document processing and data extraction, speed through former delays, and get back to customers faster. By providing the accurate, complete data needed to better and more efficiently assess risks, underwrite policies and process claims, HyperScience helps insurers stay competitive and responsive to changing customer needs.

Related: Discover the stories behind the documents and learn how HyperScience’s automation platform helps insurers move at the speed of life.

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