ATLANTA, May 3, 2021 /PRNewswire/
-- LexisNexis® Risk Solutions today released its 2021
"Future of Claims Report," revealing how the COVID-19 pandemic has
accelerated claims automation. The report includes actionable
insights for auto insurance carriers to improve their customer
experience and turn virtual claims processing into a competitive
advantage. The secret? Offering a hybrid model of self-service
claims with access to a personal touch when consumers feel they
need it.
The third edition of the bi-annual LexisNexis Risk
Solutions study tracks the auto insurance industry landscape and
identifies the latest trends in claims processing, including how
the insurance industry is adapting in its automation journey and
where carrier and consumer perceptions intersect and diverge on the
road toward touchless claims processing. As part of its analysis,
LexisNexis Risk Solutions interviewed 25 auto insurance claims
executives and surveyed 1,750 auto insurance policy holders, of
which 1,000 filed a claim within the last two years (a subset of
which filed claims since March 2020
after lockdowns were initiated). The results of the study
underscore how the pandemic has impacted the claims process and
helped define a new normal.
Prior to the pandemic, less than 15% of auto insurance claims
were handled virtually, but as soon as the shutdown was implemented
in March 2020, virtual claims
handling increased to 100% - based on conversations with insurance
carriers. Now, just over a year later, virtual claims handling has
settled to a level of a little over 60%, illustrating that while
consumers are getting comfortable with automated processes,
insurance carriers have some work to do to keep the industry moving
toward a future of touchless claims.
"While the past year has proven to be a great awakening for
claims automation, we're now at a crossroad, and what will set
insurers apart is a complete claims handling digital transformation
and move from traditional to touchless," said Bill Brower, Vice President, Claims, LexisNexis
Risk Solutions. "As we look ahead to 2025, the industry should be
optimistic that we will soon see a day when the vast majority of
claims will be processed virtually. But it will take hard work to
get there."
The Future of Claims reveals that auto insurance carriers
are on their way to touchless claims, but that insurers need to
understand and cater to their customers' wants and needs when it
comes to the digital claims experience to get to complete adoption
of the process. Key highlights include:
- Comfort and satisfaction with the claims automation process
is increasing and consumers are now seeing the advantages of
self-service claims, as 62% say it's more convenient to submit a
claim any time/anywhere, and 55% say it enables faster claims
settlement.
- Younger, more technology-savvy generations are adopting
faster as 68% of Millennials and 53% of Gen Xers say that the
pandemic has made them open to filing a claim online.
- Mastering a hybrid model is the sweet spot for claims
processing as it provides the benefits of automated solutions
combined with access to help from a Claims Representative when
consumers feel they need it, which helps avoid frustration.
- Automation has shifted from driving efficiency to driving
decisioning as carriers are now leveraging the benefits of
artificial intelligence and machine learning to enhance the
processes for damage assessments, segmentation, estimations and
payouts, in addition to intake support.
Areas of Improvement to Increase Customer
Satisfaction
While adoption is increasing and overall
virtual claims satisfaction remains high at 92%, those "very
satisfied" with their recent virtual claims process slipped 11%
since 2019, likely driven by increased consumer expectations for
ease of use. Many indicated dissatisfaction with some of the tools,
particularly for more complex claims. To improve the customer
experience with self-service claims, the study reports that
timeliness, reducing the number of touchpoints, and utilizing
features like data prefill are the areas of focus for carriers.
Although consumers may be most vocal about the ease of their
virtual claims experiences, it's actually data privacy concerns
that are their primary apprehension when it comes to adopting
touchless claims. More than three in five (61%) consumers expressed
concern about the security of their personally identifiable
information when submitting claims virtually. While carriers
understand the importance of cybersecurity, only one in 10 are
using two-factor identification, which may suggest a struggle to
address cybersecurity in their claims processes.
"Overall, consumers are willing to move to more self-service
claims options as long as the experience continues to evolve to
meet their expectations and deliver the benefits of convenience and
security," continued Brower. "Whether claims automation will become
the new normal is still up for debate, but this past year has
proven to be a powerful proof point for the viability of automated
claims processing, both in terms of insurer capabilities and
consumer receptivity. Now is the time for insurers to continue to
develop and refine their claims handling digital transformation,
before it's too late."
About LexisNexis Risk Solutions
LexisNexis® Risk
Solutions harnesses the power of data and advanced analytics to
provide insights that help businesses and governmental entities
reduce risk and improve decisions to benefit people around the
globe. We provide data and technology solutions for a wide range of
industries including insurance, financial services, healthcare and
government. Headquartered in metro Atlanta, Georgia, we have offices throughout
the world and are part of RELX (LSE: REL/NYSE: RELX), a global
provider of information-based analytics and decision tools for
professional and business customers. For more information, please
visit www.risk.lexisnexis.com and www.relx.com.
Media Contacts:
Rocio Rivera
LexisNexis Risk Solutions
Phone: +1.678.694.2338
rocio.rivera@lexisnexisrisk.com
Mollie Holman
Brodeur Partners for LexisNexis Risk Solutions
Phone: +1.646.746.5611
mholman@brodeur.com
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