Partner Insight: The Life claims department technology leap brings better human-centricity

Life insurance needs to embrace technology for smoother claims and happier customers. Swiss Re's launch of ACE and CARE highlights the importance of meeting increasing customer demand for digital services.

clock • 3 min read
Partner Insight: The Life claims department technology leap brings better human-centricity

Over the past two decades, insurance automation solutions have focused primarily on distribution and underwriting, but over the last few years, technology and reinsurance providers have made significant improvements in the life insurance claims and post-issue operating space.

Today, significant efficiency and customer experience gains through automation technologies are becoming mainstream, and many direct carriers are trying to catch up to those who have already invested. This is why market leader, Swiss Re, recently developed two new modular claim platforms that carriers can quickly integrate to their tech stack: our claimant communications and intake portal, ACE (Automated Claims Experience), and our automated adjudication guidance and claim risk and triage engine, CARE (Claims Automated Rules Engine).

Spurred not only by the pandemic, but also by an increasing customer demand for digital services, Swiss Re's launch of ACE and CARE sheds light on the industry's increasing focus of using technology to bolster operational efficiency and enhance customer experiences. In fact, with regard to improving operations, Swiss Re reports that their solutions can reduce claims cycle and processing times up to 75%.

Further on meeting customer expectations, it is important to highlight the necessity for insurers to offer online claims submission options, real-time tracking capabilities and faster decisions. There is a considerable portion of insurers today that are either in the process of implementing or planning to introduce claims portals for customers, indicative of the industry's collective shift towards digital transformation. Despite financial constraints posing challenges for some insurers, there's a palpable momentum towards modernizing processes to align with evolving customer preferences and behaviors.

Moreover, the significant impact of social influence on insurance purchasing decisions emphasizes the ripple effect negative customer experiences can have within one's social circles. In a competitive market where margins are often thin, carriers are rapidly recognizing the ramifications subpar claim experiences have on customer trust, brand affinity, and new business purchasing behaviors.

A Swiss Re survey conducted among claimants identified empathy, trust, and social influence as pivotal factors shaping the claim experience. These findings underscore the significance of aligning technology-driven solutions with human-centric values to foster positive interactions, bolster customer advocacy, and encourage top-line growth.

 Beyond customer-centric considerations, another key element to be considered by life insurers is the transformative potential of technology in enhancing their own employee experience. By streamlining administrative tasks, claims professionals are afforded more time for complex claim reviews and meaningful customer engagement. Carriers are becoming increasingly aware that core claim technology investments not only enhance customer satisfaction, but also augments employee morale and productivity.

Against the backdrop of the pandemic-induced paradigm shift towards remote and hybrid work models, technology assumes a critical role in facilitating seamless operations and supporting workforce well-being.

In conclusion, there is a strong case for a holistic approach to technology adoption within the life insurance claims landscape; one that prioritizes both customer-centricity and employee experience. By embracing technology as an enabler of efficiency, personalization, and sustainability, insurers can navigate the evolving industry landscape with confidence and resilience.

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