When an insured driver has an accident or theft, the claims process can make or break the relationship with the insurance company. Some insurance companies continue to use traditional claims procedures and look for a strong human touch to make the experience work for the insured. The danger for the insurance company is that longer wait times and human error creep into the process. No policyholder is happy with long wait times or having to correct mistakes.
Automating claims processes can yield significant reductions in wait times and improve the entire claims experience. The danger in this, from the consumers perspective, is who is seeing my confidential information? Lexis Nexis did a recent study that indicates, not surprisingly, that Millennials are the most receptive to data sharing while Baby Boomers being the least. So companies are moving toward more automated claims processes where they can save money, but still trying to keep the high touch approach, particularly with more complex claims.
Fast Track, virtual, and touchless claims processes have been the direction the industry has been going for a few years now; however, a new process, known as Telematics, has recently entered the insurance arena. Telematics, which most consumers are aware of through offers to connect devices to the OBD (onboard diagnostic) ports of their vehicles, is where driving history can be monitored for things like drive time, fast starts, sudden stops, and traveling at high speeds. Also, forward-facing cameras (which are now standard in long haul trucking), and more accurate and timely First Notices of Loss (FNOL) are part of the beginning of the implementation of this new type of technology as well.
If you are interested in more information about this new technology, we have several articles we would be glad to send you.