Build transparency and trust in claims
Building transparency into the claims process is crucial for fostering stronger trust with claimants. Policyholders can often feel left in the dark about the status of their claim after first notice of loss (FNOL). A lack of communication can result in dissatisfaction and frustration at leadtimes, as customers are not aware of the steps necessary to process a claim, particularly if it is complex. With more than two thirds of customers expecting an organisation to engage with them through proactive notifications, insurers must automate back-end processes to keep up with the expectations of consumers by providing a hyper-personalised experience.
Why are customers frustrated with their insurer?
The claims process is an area of insurance which has a large amount of negative sentiment at –86.8% on social media compared to an overall industry sentiment of –19.2%.
48.4% of service complaints from insurance customers relate to turnaround time and the highest volume of negative sentiment around claims specifically, is around the lack of transparency on claim status. Many insurance policyholders, particularly in personal lines, may be under stress at the time of making a claim and any unnecessary inconvenience or frustration should be avoided, to reduce dissatisfaction. Customers often make a claim at a time of vulnerability and rely on their insurer to mitigate any inconvenience, whether that is by replacing a phone or providing a courtesy car.
How can Generative AI help keep customers informed?
Automating status changes
Generative AI can automate status updates to customers across all stages of the claims process, leaving the customer informed and confident that their claim is being handled efficiently. This can also reduce the manual burden for claims handlers and free up their time to continue processing the claim.
Personalising existing chatbots
A chatbot service allows customers to receive real-time answers to specific questions without having to talk to customer service or claims advisors. While current chatbots mostly direct customers to publicly available information, generative AI can augment chatbots with customer policy and claims information. This can allow customers to self-serve rather than interacting with an agent to find out information such as policy coverage before making a claim. It is important to remember that trust in AI is in its early stages, with only 7% of insurance customers trusting a chatbot compared to 49% of insurance customers trusting a human advisor. It is important to have a 'human in the loop' and options for customers.
Enhancing employee knowledge
Generative AI can assist claims handlers by allowing them to quickly access customer, company and other relevant information to provide a hyper-personalised service. 40% of customers find it frustrating when having to repeat information to agents, with 31% frustrated about an agent’s lack of knowledge, so this is an issue insurers must address to build trust. By having the right information to hand, employees can make informed decisions and suggestions to customers to resolve claims effectively.
Check out our whitepaper on 'Elevating the Customer Claims Experience with Generative AI' to learn more: