EFI Global

The True Cost Of A Non-Digital P&C Claims Process

 Thursday, August 13, 2020

 PropertyCasualty360.com

By now, most P&C insurance providers are well aware of the customer experience and efficiency benefits of digitizing their customer-facing processes.

Yet partially rather than fully digitized claims processes remain the norm for many carriers, who don’t necessarily draw a clear connection between digitizing and the company’s fundamental raison d’etre: turning a profit. Failing to sufficiently digitize can lead to significant waste in funds, some of which may not seem obvious.

Below, we’ll look at some of the main reasons why providers may be losing funds during the claims process due to legacy platforms.

Paperwork processes really drag out the time it takes for P&C carriers to process the claim. First Notice of Loss (FNOL) reports are manually submitted, and there is always the likelihood that not-in-good-order (NIGO) documents will require re-work and re-submission.

Together this adds to the time it takes for the insurance company to issue a payout to the policyholder. But between FNOL and settlement, most policies require insurers to cover additional living expenses while the property is uninhabitable.
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