MANAGE & LEAD
HOW COVID-19 IS ACCELERATING AUTO CLAIMS AUTOMATION
A LexisNexis report illustrates that the secret to moving toward a touchless claims process may be through a hybrid model — and insurance carriers can do more to turn virtual claims processing into a competitive advantage .
By : Olivia Overman
The COVID-19 pandemic forced auto insurance carriers to adapt virtual claims processes at an accelerated rate to ensure customer satisfaction . While less than 15 % of auto insurance claims were handled virtually before the pandemic , this increased to 100 % in March 2020 but subsequently reduced to just over 60 % a year later , according to the 2021 LexisNexis ® Risk Solutions biannual 2021 Future of Claims Report .
The report illustrates that the secret to moving toward a touchless claims process may be through offering a hybrid model of self-service claims with access to a personal touch when consumers feel they need it . However , the report also notes that insurance carriers can help move the industry along and turn virtual claims processing into a competitive advantage .
" 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 ."
As part of the analysis , LexisNexis Risk Solutions interviewed 25 auto insurance claims executives and surveyed 1,750 auto insurance policyholders , of which 1,000 filed a claim within the last two years .
Key highlights include :
» Comfort and satisfaction with the claims automation process are increasing . Consumers are now seeing the advantages of self-service claims , with 62 % saying it ' s more convenient to submit a claim any time or anywhere and 55 % saying it enables faster claims settlement .
» Younger , more technology-savvy generations are adopting faster as 68 % of millennials and 53 % of Generation 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 . 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 decisions . 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 .
While consumer satisfaction with virtual claims processes
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