A more uncertain world makes the unexpected more likely, increasing the chances and frequency of the specific events that organizations have to respond to, manage and ultimately resolve.
And no matter what category of claims companies need to process, they certainly need to utilize an ongoing solution for any case that will fit the pandemic, natural or man-made catastrophe, product recall, and other claims.
For the insurance industry, having a standalone system of claims structuring and processing is exceptionally important.
That is why, the winning solution for these organizations is to implement the insurance claims management software — a functional, time- and resource-effective option that helps to handle and resolve different insurance cases of various clients with lower costs and better customer experience.
This article will provide you with the essential information to know about the claims management software, its benefits for the insurance industry, and the easiest ways of its implementation into the insurance company.
What Is Claims Management Software in Insurance?
The claims management software is a computer-based solution that allows companies to complete the customer-focused, cost-effective and adaptable claim processing operations.
In the insurance industry, this type of software enables eliminating the operational inefficacies and legacy issues, also reduces maintenance and training costs, and, of course, enhances the customer experience.
Companies start applying the insurance claims management software for improving and automating the traditional client service with the latest computer-based solutions.
The end result of its implementation is the system that enables creating the end-to-end claim processing system that is intelligent, agile, perspective, and ready to deliver the ROI.
At the same time, such a system will help to boost the workflow and information processing, thus allowing better services for the clients and increasing the company’s income.
According to the Gartner forecasts, the global IT spending within insurance will grow by 5.2% in 2021 thus reaching over $210 billion U.S. dollars.
By 2025, long-term spending is expected to grow at a CAGR of 6.4% to $271 billion, which is mainly driven by IT services and software growth. For sure, a notable part of these costs will be spent on developing the essential software for insurance, including the insurance claims management systems.
The Main Advantages of Insurance Claims Management Software
Because of their feature-rich structure and effective task performance, the claims management systems for insurance are now widely used by various companies.
There are plenty of reasons why companies choose insurance claims management software as their main priority — productivity increasing, cost-reducing, customer satisfaction, etc. At the same time, these reasons are also the main upsides of this software and can be summarized in the following:
Boost the Productivity
The claims management software is an efficient option for the insurance companies to quickly receive and analyze the client claims, especially when compared to the traditional employee claim processing.
The automated system not only enhances the claim processing procedures but also benefits to reducing the paperwork and minimizing the administrative errors caused by the human factor.
In addition to that, it speeds up the process of claim review and eliminates the need for numerous manual actions in insurance.
Standardize the Processes
Another important milestone that requires deep analysis for insurance companies is process standardization.
The insurance claims management software helps organizations create a standalone system of claim review that each team member can follow to quickly and effectively perform the essential work, including task assignment and managing, projects running, and their effective tracking, as well as training the new hires.
Reduce the Costs
One of the main benefits of insurance claims software implementation for companies is the ability to reduce the costs needed for a company's successful performance.
According to the recent research by BCG, with building up the feature-rich digital system for insurance, the companies can expect a 30% to 50% reduction in full-time employees who support underwriting, onboarding, claims, and policy management.
As a result, instead of being focused on the process analysis, insurers can better focus on customer interaction and client engagement. With the automated technologies implementation, companies will be able to scale up the new services and establish much stronger customer services using the most cost-effective software solutions.
Enhance the Customer Service
By automating the insurance claims management environment, the insurance companies will be able to also boost their customer service and increase the number of their loyal clients as well.
According to Deloitte Global, the future of insurance will influence client satisfaction and trust by enabling the feature of browsing the options available and file the claims anytime and from anywhere.
Furthermore, the insurance claims management software application can significantly speed up claim processing, which is paramount for improving customer loyalty.
At the same time, the insurance claims processing software will benefit the companies by minimizing the fraud and enhancing the service quality as well. Needless to say, the better services a company can provide, the more likely it will boost the client conversion.
Another important reason why claims management solutions can enhance customer service, according to PwC, is that now customers become mainly focused on the value the insurance company can provide to them rather than just price.
Over 71% of consumers need detailed information about their policies, as they’re willing to pay for what they actually need.
Thus, both the customers and the insurers need an all-in-one effective claims management solution to access any information and easily interact with each other within one system.
Easy to Apply & Use
Unlike most of the other new systems applied by the insurance companies for workflow improvement, the insurance claims management software doesn’t require too much time, effort and training to be applied to the new working environment.
These systems are easy to learn and use since their interface and features are designed to be used by different companies of any size.
10 Core Insurance Claims Management Software Features
The most effective way of how the insurance companies can implement the insurance claims management software is to develop their own system with all the features needed for workflow improvement.
However, to create any type of software, it’s essential to define the main features developers need to include in this system. Here are the most important ones insurance companies should consider for their claims management solutions:
- Advanced reporting and deep analysis
- UX features (for example, autofill reports and password managing)
- Invoice generation and structuring
- Professional customer support (using live chats, emails, call, chatbots)
- Multichannel notifications
- Risk assessments and fraud detection
- Automated claim processing
- Tracking system for claims progress
- Automated reminders and informative notifications
- Centralized database with the easy-to-use search system
With all these features included, companies can launch an effective high-end insurance claims management system that will assist in the basic processes automation, workflow optimization, and advanced customer service.
How Intellectsoft Can Help Your Company Develop This System
Before starting the development process itself, we profoundly analyze the market, its top players, the needs of end-users, and your long-term business goals. Based on the information collected we define software features and architecture that would be able to serve the users to the fullest extent.
Our dedicated team consists of experienced developers, designers, QA engineers, business analysts, and project managers all of them working together to create a high-quality final product.
The process of developing the most effective insurance claims management system certainly requires deep knowledge of the claim processing system.
However, it’s also crucial to conduct detailed research of the most important features the insurance company needs and learn how to make this software beneficial exactly for your case. Custom insurance software development services are the right option to apply for launching a feature-rich and effective claims management solution for your business.
Do you have a great business idea for claim software and need an experienced development vendor? Feel free to contact Intellectsoft and let’s innovate together!