Modern-day claims management systems for insurance have revolutionized the industry as a whole. Insurance claims software has made insurance more customer-friendly by making the claims process more straightforward, transparent, and accurate. However, if you thought that the insurance claims administration system reached its peak of innovation and efficiency, you couldn’t be further from the truth. If anything, this is just the starting point of a long-term transformation – and Business Intelligence (BI) is just one piece belonging to the larger picture.
BI entails a bouquet of technologies, tools, and processes aimed at storing, analyzing, and presenting business data to power informed decisions. Such insights are often presented in the form of detailed reports or interactive dashboards. Here’s a look at how BI reports and dashboards can complement claims management efforts to make them better in all aspects.
Roadblocks to Effective Insurance Claims Processing
Gaining the context of the challenges plaguing the claims management and processing workflows will help you better understand and appreciate the role of BI-powered insurance claims management software. So, here is an overview of the various challenges posing as roadblocks to effective insurance claims processing:
Insurance is a highly regulated industry. Plus, it involves handling personal data, which is subject to data privacy and security laws. As such, keeping up with the legal or regulatory framework and subsequent changes can be difficult, especially if they take effect within tight timeframes.
Fraudulent insurance claims can cost businesses a little over $40 billion per annum, and that’s just for non-health insurance. Such insurance claims frauds can eat into the stability of an organization.
Lack of Customer-Friendliness
The insurance industry gets a bad rap for not being customer-focused. It’s even harder to uphold one’s reputation or earn customer goodwill during the process of claims filing and processing, as they often come at a time of distress. Having customers jump through hoops during such trying times surely doesn’t improve their experience or satisfaction levels.
Poor Data Quality and Management
Insurance works with a wealth of data. As such, compiling high-quality data and managing data to maintain this quality can be time and resource-intensive. After all, Gartner estimates that 70.3% of customer data goes bad per year, making data hygiene a pressing concern. Neglecting this task also has devastating effects since poor data will yield poor results!
Lack of Resources
From managing data quality to ensuring compliance, insurance processes are resource-hungry. Such demands peak during catastrophes, pandemics, and other such incidents that can stretch insurers thin.
The above challenges are just scratching the surface, however, investing in insurance claims software with BI capabilities can optimize the claims management process as we will explore in the subsequent section.
Can Business Intelligence Reports and Dashboarding Transform Claims Processing?
Now, to the meat of the things: how do BI-enabled claims management systems for insurance help businesses? Here’s a look.
1. Powerful Data-backed Insights
Insurance claims management software with BI operates on a data-driven framework. As such, all the insights captured within the reports and dashboards will be backed by cold-hard, objective data. By eliminating all the guesswork and manual intervention from the process of claims handling, you can make it faster, more accurate, and more credible. Using these findings, you can identify bottlenecks and inefficiencies, catch trends and patterns to prevent and mitigate fraud, and formulate claims-related strategies – all in the same stroke!
2. Real-time Analytics and Reporting
While the BI insights are invaluable, obtaining them at the right time is equally mission-critical. Fortunately, insurance claims management software can generate BI findings in real time for instant action or intervention. Using such accurate, data-led insights through real-time reports and dashboards, insurers can monitor claims processing workflows, address challenges, and measure claims processing metrics instantly.
3. Predictive Analytics
Most BI tools are powered by AI/ML algorithms that are excellent at detecting patterns and identifying trends to implement predictive analytics in insurance. With the available historical data, BI-enabled insurance claims estimating software can effortlessly make accurate forecasts, such as predicting the hurricane season and the corresponding resource requirement or flagging the possibility of claims fraud, to help organizations proactively tackle issues before they transform into a catastrophe.
Enhance Claims Processing With Predictive Insights
4. Increased Transparency and Accountability
Insurance claims administration systems make the underlying processes more transparent. BI can empower policyholders to access real-time claims status and track its progress throughout the claims lifecycle. We’ve also established the role of BI reports and dashboards in improving accuracy and reducing fraud, which fosters an environment of trust and accountability. At the same time, this strategy for claims transformation is also a great technique for maintaining compliance with the existing laws and regulations.
5. Rich Customer Experiences
Modern insurance claims software equipped with BI is a shot in the arm for making insurance customer-friendly. First, the entire claims journey becomes paperless and pain-free, which makes it easier to file claims. Next, policyholders can comfortably track their claims and obtain their latest status in just a few clicks. Finally, the combination of speed and accuracy is bound to leave the customer feeling more satisfied. All in all, the combination of BI and claims management systems for insurance is a recipe for customer success.
To sum up, BI is a powerful top-up to supercharge existing insurance claims management software, if any. On the other hand, if you’re in the market for an insurance claims administration system, then we’d highly recommend choosing one equipped with BI capabilities. Either way, the two will propel your insurance business to new heights by making it more customer-centric, profitable, and resilient. Given such tangible advantages, it is now up to you to select BI-enabled insurance claims estimating software to unlock your organization’s true potential.
Case in Focus
A leading multi-line insurer based in Trinidad and Tobago faced multiple issues related to decision-making and claims process inefficiency, which was affecting its profitability and workforce morale. We empowered the client using a Build Your Team (BYT) model to curate bespoke business intelligence (BI) software to address their specific needs. Such an intervention helped them reduce fraudulent claim detection time by a whopping 95% – amongst other benefits. To learn more, refer to this complete case study.