MENU
Balancing Automation and Empathy
Auto insurance carriers are increasingly using automation to maintain a competitive edge.
In one of the most in-depth reviews of the industry to date, LexisNexis Risk Solutions surveyed both insurance carriers and consumers for our 2019 Future of Claims study to determine whether carrier motivations are aligned with consumer needs.
Carrier Motivations
Overall, carriers are seeking to take touches out of the claims process.
Carriers that have embraced claims automation report:
3-10x
more cases processed per adjuster
reported by 5 out of 24 carriers
3-10x
more cases processed per adjuster
reported by 5 out of 24 carriers
1–15 day
reduction on cycle times per claim
reported by 7 out of 24 carriers
1–4 manual
touches removed per claim
reported by 17 out of 24 carriers
Claims satisfaction drops significantly when consumers have to talk to more than one person
80%
66%
47%
38%
Consumer Needs
Consumers want a faster, easier, simpler claims process
1 in 5
prefer self-service
...but complain that First Notice of Loss self-service asks too many questions
Claims Process Explored
TRADITIONAL
TRADITIONAL
A process where an adjuster goes into the field, inspects the vehicle or home and prepares an estimate.
FAST TRACK
FAST TRACK
An expedited claims handling process with minimal insurance employee involvement. An example would be a direct repair claim.
VIRTUAL CLAIMS
HANDLING
VIRTUAL CLAIMS HANDLING
A process where a customer or vendor captures damage via photos or streaming video; a claims adjuster conducts the damage assessment remotely.
TOUCHLESS CLAIMS HANDLING
TOUCHLESS CLAIMS HANDLING
In this process, a claim is reported electronically. Technology is used to capture damage or invoices, run a system audit, and if the claim meets approved criteria, the claim is paid electronically.
True or False
In 2019, more carriers reported using Virtual Claims Handling than in 2017.
TRUE
FALSE
This is correct!
In 2017, 79% of insurance carriers reported using Virtual Claims Handling. In 2019, that number increased to 95%.
This is incorrect!
In 2017, 79% of insurance carriers reported using Virtual Claims Handling. In 2019, that number increased to 95%.
True or False
Carriers are not looking into Touchless Claims Handling.
TRUE
FALSE
This is correct!
Insurance carriers reporting that they are considering or open to Touchless Claims Handling grew 90% from 2017 to 2019.
This is incorrect!
Insurance carriers reporting that they are considering or open to Touchless Claims Handling grew 90% from 2017 to 2019.
The Road to Fully Automated Claims
Consumer Acceptance
Consumer interest in increased automation is expected to grow quickly
66% of Millennials are comfortable with automated processes — and demand is tied to younger generations
66% of Millennials are comfortable with automated processes — and demand is tied to younger generations
57% of all respondents are fairly or very comfortable with automated processes
Increased Automation is Currently a Win-Win. Moving Forward, it’s All About Balance.
To successfully implement further automation, carriers must develop a hybrid approach that leverages automation where it can be most effective; while also providing more accurate, more empathetic engagement with customers when needed.
Fill the form below to download the 2019 Future of Claims Study: Balancing Claims Automation and Empathy
First Name*
Last Name*
Email*
Phone Number*
Title*
Company/Agency*
Country*
Yes, I would like to receive the latest insurance trends and best practices from the LexisNexis Insurance Insights blog!