5 ways digital transformation is revolutionizing insurance claims processing

The modern insurance industry has been around for decades, and therefore often relies on traditional processes and workflows, such as manual data intake. But that can be a big mistake when it comes to claims processing. While manual data intake may have been the only option for processing claims in the past, today it is far from the ideal option. 

Digital data intake offers several advantages over manual data intake, including increased efficiency, accuracy, scalability, cost savings, and data quality. For example, with digital data intake, data can be entered and processed automatically, reducing the time and effort required from the insurer. In addition, manual data entry is prone to human error, such as typos, data entry errors, and incorrect formatting. With digital data intake, data can be entered and validated automatically, ensuring accuracy. 

That’s not all. Digital data intake can be easily scaled to handle large volumes of data, and insurers can process and analyze large amounts of data quickly and efficiently. Last but not least, digital data intake can lower costs by reducing the need for manual labor and the associated costs of training, management, and benefits.

5 ways digital transformation is impacting claims processing

With such extensive capabilities, it’s no surprise that digital data intake and other types of digital transformation are revolutionizing insurance claims processing. Let’s look at five key ways in which they are impacting workflows and processes. 

Digital data intake is empowering insurers to reap the benefits of automation 

Automating processes and operations, or robotic process automation (RBA) leads to significant benefits in terms of efficiency, accuracy, and cost savings for a rapidly growing number of organizations in a variety of industries. In fact, a study by KPMG and HfS found that process automation is one of the “essentials for future survival” technologies. In  the insurance industry, RPA can help insurers can streamline their operations and reduce the time and resources required to underwrite policies, process claims, and manage customer relationships. This can result in faster turnaround times, lower costs, and improved customer satisfaction.

Yet despite the clear benefits, few insurers have truly scaled RPA in their organization, and fewer still are reaping its full potential. Why is that? One of the many barriers to the full realization of RPA is data integrity.  When RPAs are fed with inaccurate data, they can’t operate effectively. 

Digital data intake verifies data in real time, significantly improving the accuracy of the data fed into RPAs and allowing them to function effectively. In addition, digital data intake allows insurers to leverage advanced analytics and machine learning algorithms to gain deeper insights into customer behavior and risk profiles. This can enable insurers to develop more accurate pricing models and offer personalized products and services that meet the unique needs of individual customers.

Streamlining workflows with cloud technology for document management & collaboration

Physical forms or even online PDFs are one-size-fits-all. They aren’t interactive and therefore the same fields appear on every form, no matter who is filling it out. In addition, there is no way to transfer data between forms, so customers have to fill in the same information repeatedly, in every form they submit to their insurer. 

With digital data, once a customer submits a form it is updated in the insurer’s core system in real time.  It is accessible during any interaction that the customer has with the insurance carrier. There is no need to fill in the same information repeatedly. With autofill, existing information simply appears in every new form, and all the customer has to do is update it if anything has changed.  

Since the data is accessible to anyone who has permission to access it, it’s easy for staff members in different departments and different locations to collaborate on the claim. The organizational siloing that often slows claims processing down is essentially eliminated. 

It enables data segmentation & identity access solutions that enhance security

Digital data intake makes it easier for insurers to implement data segmentation and identity access solutions that improve data protection and security.  Data segmentation involves dividing data into smaller, more manageable parts, which reduces the attack surface for potential cyber-attacks. By restricting access to sensitive data and only allowing authorized users to access specific data sets, the risk of unauthorized access or data breaches is significantly reduced.

Identity access solutions allow for granular control over user access, ensuring that only authorized users have access to specific data sets. This ensures that users are only able to access the data they need to perform their job functions, further reducing the risk of data breaches.

Incorporating data segmentation and identity access solutions also improves visibility into data access patterns and user behavior. This can help identify potential security threats and mitigate them before they cause damage.

Last but not least, compliance regulations such as GDPR, HIPAA, and PCI require businesses to protect customer data and personal information. Data segmentation and identity access solutions can help businesses ensure compliance with these regulations and avoid costly fines and legal penalties.

Developing innovative user interfaces to make claim submission and status tracking easier & faster

One of the most frustrating parts of submitting a claim for the customer is not knowing where their claim stands. It’s not that they expect answers immediately—most customers understand that claims take time to process. However, the sense of not knowing whether all the information has been submitted, or when they can expect an answer can be unsettling. 

Digital data intake allows insurers to develop innovative customer interfaces that reduce or even eliminate that uncertainty and significantly improve the customer experience. When all data is submitted digitally, customers can often complete all or part of the submission process on their own, through a self-service portal. They can see what has been submitted and what is still missing in their claim filing in real-time, and once the claim has been submitted in full, they can use the same portal to track the status of their claim at their convenience. 

Increasing visibility with cloud-based dashboards that track & analyze claim status in real-time

Underwriters and other staff members involved in the insurance claims process are often juggling multiple claims at a time. Cloud-based dashboards, fed by digital data intake, make it easier for them to keep track of every claim and make sure that nothing falls between the cracks. 

With user-friendly dashboards, every team member can direct his or her time and energy where it is needed most. This prevents unnecessary delays and makes sure that every claim is processed as quickly and efficiently as possible. 

The digital revolution in insurance is underway

Digital transformation offers so many benefits that it is no surprise that it is quickly becoming the standard in the insurance industry. It’s no longer simply “nice to have”—it’s key to remaining competitive in today’s market. Digital data intake is a key step in the digitization of the claims process, and luckily, with no-code platforms, it’s easier than ever to implement.