The Evolution of Life Insurance Claims Technology: A Focus on Human-Centricity

In the historical context, the sphere of insurance automation has predominantly centred around distribution and underwriting. Nevertheless, recent times have witnessed a noteworthy shift towards enhancing technology within the life insurance claims and post-issue operating domain.

At the forefront of this technological revolution stands Swiss Re, a key player in the insurance sector. The company has recently introduced two novel modular claim platforms with the objective of transforming the approach of carriers towards claims handling. The first of these platforms is ACE (Automated Claims Experience), which places emphasis on claimant communications and intake portal. The second platform is CARE (Claims Automated Rules Engine), which functions as an automated adjudication guidance, and claim risk and triage engine.

The development of these platforms is timely, given the escalating demand for digital services, particularly in the wake of the pandemic. There is an increasing urgency to enhance operational efficiency and elevate customer experiences. Swiss Re has reported that their solutions have the potential to decrease claims cycle and processing times by up to 75%, underscoring the significant impact of these technological advancements.

Furthermore, there has been a transition towards digital transformation within the insurance industry, with several insurers aiming to implement or enhance claims portals for their clientele. This underscores the collective effort of the industry to modernize procedures and align with evolving customer preferences.

The influence of social factors on insurance purchase decisions cannot be underestimated, as negative customer experiences can exert a ripple effect within social circles. Consequently, carriers have recognised the emphasis of providing a positive claim experience, as it directly impacts customer trust, brand affinity, and new business purchasing behaviours.

A survey conducted by Swiss Re among claimants has unveiled the pivotal role of empathy, trust, and social influence in shaping the claim experience. This underscores the necessity of aligning technology-driven solutions with human-centric values to promote positive interactions and stimulate customer advocacy.

In addition to customer-centric considerations, technology also possesses the potential to enrich the employee experience within life insurance companies. By streamlining administrative tasks, claims professionals are afforded more time for intricate claim reviews and meaningful customer engagement. This not only elevates customer contentment but also bolsters employee morale and productivity.

As the world continues to adapt to remote and hybrid work models, technology assumes a critical role in facilitating seamless operations and supporting workforce well-being. Clearly, there is a compelling case for a comprehensive approach to technology adoption within the life insurance claims landscape, one that prioritises both customer-centricity and employee experience. By embracing technology as an enabler of efficiency, personalisation, and sustainability, insurers can confidently navigate the evolving industry landscape.