The insurance industry is an archaic, multi-billion dollar industry ripe for disruption. There is practically no end to the opportunity to increase efficiency within the industry, and considering insurance is already a wildly-profitable segment of the market, any efficiency injected into the current process can do nothing but improve the customer experience and bottom line profits of the insurers. Even though some carriers are still conducting aspects of their business, like claims processing, in a traditional context, the operational and customer demand for faster cycle times, lower expenses, and an improved customer experience are driving a variety of automations within the industry as a whole.
The Digitization of the Insurance Product
An area of particular focus is the digitalization of the insurance product itself as it moves through various phases within the customer experience. Many insurance companies are already seeking to appeal to millennials that prefer to shop for practically everything within a digital experience. Everything from shopping for a policy online, to using web chat as opposed to phone to speak to an agent, to receiving paperless statements through email, the modern consumer of insurance products is quite different from the consumer of the 80s and 90s. This is where the modernization of the process ends, however, as any subsequent claim that a customer submits enters through an archaic maze of paper, faxes, emails, and call centers. This is the inflection point in the insurance process that is truly ready for disruption.
The Unnecessarily Long & Costly Claims Process
One of the main economic drains on the entire claims process is the aggregated time it takes for a claim to be initiated, submitted, and resolved. There are numerous parties involved, including the claimant, the medical provider, the claimant’s insurance, the other potential party’s insurance, revenue cycle managers, attorneys, and the court system’s personnel. All of this adds up to be a substantial time burden and expense, as every exchange (calls, faxes, emails, etc.) consumes more time and results in greater costs.
In order to operate more efficiently and cut the time and cost needed to resolve a MVA claim, the parties involved need to adopt new methodologies, tactics, and technologies. The parties involved in claims processing must operate leaner, and as with any lean operating process, leveraging technology can vastly improve efficiency and output. Can you imagine if every weld on a modern car assembly line was still done by hand?
The Role of Technology in MVA Claims Process
Leveraging technology in the claims management process is the logical outcome of years of inefficient paper trails and useless litigation that rarely benefits the claimant, the medical provider, or the insurance company. By injecting a technology medium between the medical provider that renders healthcare to a claimant patient, and the responsible insurance carrier, a great deal of inefficient human capital resources are removed from the process. From the financial waste created by the medical provider that chases insurance companies for payment, to the unnecessary litigation that burdens the local court system, there is a massive amount of lost time that can be saved through automated technology. This reduction of time spend per average insurance claim results in a better customer (claimant) experience, a cost reduction for the carrier, an expedited cash flow event for the medical provider, and a huge win for the court system that isn’t hearing meaningless and irrational claims cases on a daily basis.
The anticipated outcome of an insurance claim, at least for the claimant, is to be covered for out of pocket expenses derived from an unforeseen event which is paid by his/her insurance company. However, every step of the process from claim inception to carrier payment is an opportunity for financial waste and claimant dissatisfaction. One of the few true beneficiaries of the traditional insurance claims process are third party plaintiff attorneys that derive fees from their intermediary work within this archaic process. With a modern, technology-driven claims process, the need for these plaintiff attorneys to be allocating time (collecting fees) to the process is dramatically reduced.
The key to this evolving process is a cloud-based claims management system that acts as a communication medium between medical providers and carriers. In the traditional resolution process, factors such as policy limits, determining liability, and reviewing medical billing can make a potential claims transaction exceptionally messy and opaque. Using a claims management software, however, ensures that patient and policy information are transparent, and an expedited resolution can be achieved, ultimately saving providers and carriers hundreds of millions of dollars.
ClaimTECH is a technology platform that bridges the gap between auto insurance carriers and healthcare providers by streamlining the settlement process of third party liability MVA claims.Through this connectivity, ClaimTECH bypasses the traditional hurdles (revenue cycle management companies, plaintiff attorneys, etc.) effectively creating large savings for auto insurance carriers and significantly decreasing claim settlement time. If you would like to see our cloud-based claims resolution software system in action, please request a demo below!