Leveraging Technology To Maximize Productivity
Executives in the insurance claims field know the high demand placed on a claims department of an insurance organization. A claims department is not only called upon to deliver exemplary customer service to policy holders, but also adjust claims according to state laws and policy procedures while containing costs wherever possible. It’s the double edged sword known as the claims managers’ dichotomy. Typically, to focus on providing better services to customers means to spend more time and money on each claim. Whereas, to focus on reducing costs for the company means spending less time and money on each claim by closing files faster and faster.
Until the recent growth of technology over the past ten years collided with the insurance sector, reducing costs and increasing customer service was a balancing act many managers only minimally succeeded at in a paper based office environment. The introduction of new technology brought forth savings and customer service to a level never before seen. Technology interjected a whole new set of standards and means by which to drastically increase a claims department’s performance.
As technology continues to grow, the cost of high performance software solutions plummets, and the opportunity to dramatically affect adjuster performance and provide cost savings to a company as a whole cannot be ignored. Yet, the number of offices which fail to utilize these vital tools is staggering.
Companies who fail to adapt and revolutionize their processes and procedures will suffer higher loss adjustment expenses, poor CSI ratings, and reduced client retention. When there is a lack of progressive thinking amongclaims managers and their department fails to adapt to the changing landscapes of the industry, their division becomes a financial strain on the company as a whole.
Vast numbers of adjusters throughout the industry are working with obsolete technology and are severely hindered by outmoded and useless office procedures and rules based on the “old school” mentality of auto claims handling. The common problems evident today which lead to increased loss adjustment expenses, decreased adjuster productivity and poor customer service can be traced to three main issues;
Lack of Flexiblity Due to Outmoded procedures:
Many executives and top level management have been within the claims sector for over a decade and are familiar with the industry’s standards in operations and management. It is not uncommon for senior managers to inherit and continue to mandate ineffective claims handling procedures. Through the use of technology, managers could improve and streamline these procedures to see drastic improvements in turnaround time with redundancy reduction. Until recent years, technology has not been a critical factor for many managers in improving their company’s overall performance. Instead of embracing the possible benefits new technology could bring to their company and increased adjsuter productivity,
It’s the “we’ve always done it this way, so why change” mentality that is slowly eating away at productivity and revenue.
The truth is that in today’s modern world, technology is an integral part of all businesses on some level. It is impossible for claims departments to operate without the use of computers and computer systems to process and house claims information. However, many are still not utilizing technology beyond its basic capacities. Managers who want to push their company forward into the modern landscape of the insurance industry need to begin focusing on technology and thinking outside the archaic box. Technology can help a company save hundreds of thousands in costs per year by going paperless and creating new ways to reduce adjuster redundancy.
High Call Volume:
While telecommunication is the most common form of providing customer service, it can also be a tool that destroys productivity. It is the single largest hindrance on adjusters, substantially slowing down their ability to process claims. Every redundant phone call an adjuster makes or receives inevitably costs the company money. Not just in phone charges, but through the productivity lost each time adjusters must stop to answer customer service calls, make outbound calls, wait on hold, or leave/manage voice messages. All of which could be minimized through the use of email and a better claims tracking system. Companies in every industry have made web based communication with their customers a common practice. Most policy holders already utilize electronic communication for one or more other services they currently receive on a regular basis (banking, travel, education, ect). With email and a comprehensive claims system, insurance companies can keep the claimant updated on the status of their claim through automatic notifications the system is set to dispatch as a claim transitions through the processing stages. Utilizing this means of communication can drastically reduce call volume and actually improve customer service. More recently, many companies have extended their online communication with customers even further by implementing an instant messenger system, accessible to customers through the company’s website. This “live” interaction between customers and companies provides the customer with a feeling they are instantly connecting with a customer service representative whom can answer a broad range of questions or concerns. This removes the often frustrating and time consuming task customers typically experience when seeking customer support. Clients no longer are pushed through a series of redundant and unsuccessful procedures such as; waiting on hold, navigating through an automated telephone service, or locating answers in a FAQ’s directory. The use of instant messenger systems have shown amazing results in customer satisfaction and
reduced call volume. It is just another example of how technology can create a drastic change in how companies interact with their clients.
Inadequate equipment and training:
When staffing a typical claims department, the importance of training and equipment are often undermined by the perceived immediate costs. In actuality, thoroughly training employees on systems and company technology creates huge increases in work productivity. The time and money spent to ensure that adjusters are fully fluent in their company’s claim systems are actualized when workers are more efficient and claims are being properly handled, causing client base to widen, and revenues increase. Equally important is ensuring that equipment and data systems are not outdated. Current systems should reduce traditional “loose” paperwork by at least half. With the use of a primarily paperless system many redundant processes are automated, and less time is spent looking for misplaced faxes, lost files and a desk cluttered with paperwork. The only way to guarantee an adjuster can work to the best of their abilities is by removing the stress and headaches that come from being undertrained and dealing with outdated systems or excessive paperwork.
What is the solution?
The goal in today’s claims department should be to maximize adjusters’ capabilities, developing as much productivity as possible while reducing overall stress for the employee. Removing ineffective or redundant procedures and streamlining the claims process through advanced claims management tools will allow an adjuster to focus their time on adjusting claims and getting files closed faster. In many instances, this allows smaller staff to handle a higher claim volume when compared to the “traditional” model of a claims department.
1. Evaluate current policies and procedures. Eliminate unnecessary steps and go paperless wherever possible.
2. Integrate newer technology and update software on existing systems.
3. Utilize internet claims management tools to track claims.
4. Effectively train employees in needed computer skills to streamline their work.
5. Keep an open mind about technology and view the ever-changing claims environment as an opportunity for reducing costs and implementing more efficient procedures.
The best way for a company to ensure it is receiving the highest level of output from its employees, is through providing them the tools, technology, and training necessary to be as productive as possible.
