Insurance is a promise—a safety net to fall back on during difficult times, such as an accident. Customers or insured individuals expect quick claims settlement along with speedy service. An insurer’s profit graph is bound to plummet if it fails to provide a seamless claims process.
More than the premium price, positive claims experience and exceptional customer care have become critical factors in determining customers’ intention for a repeat purchase. Fresh research also highlights the growing rate of customer dissatisfaction with auto insurers.
In auto insurance, claims processing is critical to demonstrate a company’s promise to its customers. However, insurers are often riddled with challenges such as working with legacy systems and siloed data, along with rising expectations of a growing customer base. A major US auto insurer experienced these challenges, and legacy system-induced challenges further added to the woe. The company partnered with Evoke to implement data modernization in auto insurance, speed up its claims settlement, and enhance analytical capabilities to effectively address the challenges.
The Challenge to Deliver a Better Claims Experience
Our client company found it increasingly difficult to process claim settlements on time. The existing legacy systems hindered scalability. It needed extensive manual intervention for processing and provided a fragmented experience. The dominant challenges the company faced were
1. Delayed Claims Settlement
In auto insurance, insurance claims could extend from days to weeks with a minimum delay of 7-10 days. The company’s reliance on manual processes led to fragmented and error-prone data. These issues slowed down turnaround times, affecting operational efficiency and customer satisfaction. For example, a customer in urgent need of her vehicle repair due to an accident would have to provide the same information to different insurers’ departments. A delayed response from the insurer about verifying the customer’s details turns into an extraordinary ordeal for her.
2. Lack of Advanced Data Analysis
The absence of updated data analysis made it difficult to conduct in-depth analysis of claims, understand customer behavior, and also determine policy pricing. The lack of real-time data insights limited the comprehensive understanding of the claims trend, a customer’s authenticity, risks, or potential fraud patterns.
3. Limited Scope of Insights Sharing
The lack of data modernization in insurance meant manual data entry in Excel sheets and Power BI reporting. Furthermore, employees would share the findings of the analysis manually. This hindered collaboration and real-time information availability. Following information collection and manual reporting, a claims adjuster would have to report the same to the Special Investigations Unit (SIU) for a potential fraud check. They, in turn, needed to recheck or validate the data in their systems. Upon completion, the SIU would mail the adjuster a final report about the findings. If additional data was mandated, SIU needed to request it again, further delaying the claims settlement process. Our client company realized the urgent need for data modernization in insurance.
The Insurer Implemented a Centralized Data Platform with Microsoft Fabric in Insurance
The insurer wanted to convert its data into strategic assets, not an unavoidable liability. Our in-house Microsoft experts developed a data platform that effectively replaced the disconnected legacy systems.
The strategic solution simplified data management, analysis, and its utilization to generate business results. It was like breaking down and replacing the old bricks with a modernized, robust data bridge with Microsoft Fabric. We helped the company to:
- Establish A Common, Centralized Data Platform: We employed Microsoft Fabric in insurance to consolidate all their data, from claims to customer details, into a single platform. Our solution resolved the issue of siloed data, ensuring all departments were working with the same, updated data. This enhanced the decision-making process.
- Enable Real-Time Data Insights: Our Microsoft-powered data modernization in insurance helped the insurer shift from a slow, reactive system to a data-driven process. The new Microsoft-powered platform helped the insurer accelerate claims settlement and identify potential risks or fraud based on real-time analytics, optimizing operational efficiency.
- Initiate Seamless Collaboration: Our Microsoft experts used One Lake to develop an accessible, centralized data hub. The unified view of data helped the teams work together, quickly assessing and closing claims. The solution also ensured the proper implementation of data governance practices.
The Result: A Unified Operational Flow, Faster Claims Settlement
The data modernization in insurance helped the insurer in:
- Accelerating Claims Settlement: The Microsoft Fabric solution improved claim settlement ratios. It reduced processing timelines, improved operational efficiency, and increased customer satisfaction.
- Establishing a Centralized Business: The single, connected ecosystem simplified data sharing across internal teams and external applications, enabling seamless team collaboration and prompt decision-making.
- Leveraging Data as a Strategic Asset: The insurer utilized its data to address claims settlements and curate services based on clients’ needs. This helped detect risks and fraud and drive operational agility.
Data modernization in insurance is crucial to gaining a competitive advantage and a larger customer base. However, adopting the change without a well-thought-out roadmap risks potential failure. A data modernization strategy aligned with business needs and vision is imperative.
Evoke’s Microsoft experts deliver an end-to-end solution that ensures you not only address your existing business challenges but also achieve greater agility, efficiency, and functional scalability like the US-based insurer.
Implementing data modernization in insurance with the right partner not only accelerates claims processes, enhances customer satisfaction, and develops intuitive services. It helps you to leverage data to truly understand your customers, thereby enriching customer experience for both existing and potential clients.
Considering shifting to a smart platform that converts your data into a growth fuel? Connect with our Microsoft experts to find out how.
You can also download the case study for detailed insights.