A digital revolution in the insurance industry

The following article is an edited version of “Digital transformation and the claims process – a history” by Hyland Software, a leading US developer of the enterprise content management (ECM) and process management software suite called OnBase. Applications of the suite are used in the Insurance industry, among many others.   

The insurance claims environment, a complex ecosystem with centuries of evolution behind it, is poised for digital transformation. Innovative technology will play a critical role in this latest evolution, especially RPA (robotic process automation), artificial intelligence and machine learning, drones, wearables and the internet of things. One thing won’t change, and that is insurers need to focus on the customer. In fact, customer experience will play perhaps its greatest role  in insurers’ success ever.

Processing insurance claims has long been a complex, labour-intensive and laborious process. For employees, this means work hours spent on what are typically low-value tasks – inputting information, filing paperwork, searching for customer information and more. For insureds, this means payouts that can take weeks or months – and a customer experience that will not cut it in the digital age.

In fact, customer experience will be the business differentiator for insurers in the very near future. This means retaining customers will depend more on how they feel and communicate with your organization and less on how much premiums cost.

Mining unstructured data

Recent developments in data and content management have revolutionised the insurance sector worldwide, improving the employee experience and increasing customer satisfaction ratings. By using advanced content-management systems, insurers are able to harness and not just process data, which increasingly allows them to differentiate themselves in terms of customer experience.

Mining unstructured data (images, video, voice, text messages, emails, etc.) to better understand customers and provide the experience they desire is becoming the standard.

Not long ago, insurers were only processing 10 to 15 percent of structured data. That is a lot of information getting lost. But more than 80 percent of all the data used by businesses is unstructured, according to Frank Ohlhorst in Big Data Analytics.

Drivers of change

Over the last few decades, insurers have applied a great range of technologies to automate processes and support adjusters and claim operations. The impetus to digitize, however, is stronger — and more vital — than ever. In many ways, insurers do not want to digitally transform the claims process. They need to.

Central to this evolution, and its catalyst, is data. Digital data in all forms is increasingly vital for claims. Managing digital content is now a mandatory, mission-critical capability for insurers. Digital changes every facet of doing business – customers, products, risks and operations. More than that, the ability to harness that data to improve processes, speed claims resolution, provide employees with the right information at the right time, and build a customer experience that both retains and attracts insureds is key to future success – and  even to simply remaining competitive.

Insurers need to rethink the claims environment for the digital age. Content services solutions surface information in context by connecting data and systems across the insurance enterprise. By providing users with easy, secure access to complete information – anytime, anywhere, on any device – carriers can pursue strategic digital transformation programmes and facilitate more responsive, meaningful interactions between users and customers.

To find out how Hyland Software’s Content Services can vastly improve your employee and customer experience , contact Chantal.Viviers at iOCO, a Proudly EOH company.