How the Right CX Partner Can Help You Navigate a Busy Summer of Auto Claims
As the good weather rolls in, Americans are gearing up to enjoy some fun in the sun, which means taking to the roads, as an estimated 196 million people, or 75% of American adults, intend to take at least one summer road trip. This also means heightened risks and an increase in accidents as roadways become more congested. It's no surprise then that, during this time, the auto insurance industry sees a rise in claims, and it's becoming an increasing problem as accidents become more severe and frequent, which highlights the critical need for effective claims management during the summer season.
An Increase in Auto Claims and Costs
Though many Americans plan to cruise the highways this summer, the truth is they are facing enormous challenges all around, and not just in the form of higher gas prices. Along with maneuvering inflation and an increasingly difficult economy, Consumer Price Index data reveals a staggering 20.6% year-over-year increase in car insurance prices, which means U.S. drivers are now shouldering an average annual cost of $2,543 - a 26% rise from the previous year.
Many policyholders also find the claims process too slow, with a lack of accessibility or accuracy when it comes to claims management. So much so, that over a quarter of policyholders have considered switching to other providers following their claims experience.
On the other hand, the auto insurance sector isn't without its own set of hurdles. The rising number of traffic deaths and the increase in claims for severe injuries has led to booked losses on 27% of collision claims - three points higher than previously recorded. While the cost to repair a vehicle is up 6.7% from before the pandemic, due to more expensive auto parts and wage increases for car mechanics.
A report from the U.S. Department of Transportation also showed an increase in reckless driving behaviors, such as speeding, which accounts for nearly one-third of all fatalities on the roads. They also found increases in distracted driving, impaired driving, and challenging road conditions brought on by adverse weather. Not to mention an increase in fraudulent claims, with an estimated $308.6 billion annually lost to insurance fraud in the U.S., complicating the process of managing claims.
This puts insurers in a precarious position where they must strike a balance between profitability and delivering exceptional CX. In this landscape, Caribbean and other nearshore outsourcers have emerged as a viable tool for cost-effective, efficient auto claims processing, especially amidst the challenges posed by the summer peak.
How CX Partners Can Help You Navigate a Busy Summer
Enhanced Customer Experience
Let's start with a big one... enhanced CX, which is the cornerstone of sustainable profitability. During stressful events like filing insurance claims, it’s vital to deliver top-notch customer service. Whether policyholders have questions about their claims, need help with documentation, or require guidance during the claims process, CX providers give insurers access to 24/7 contact centers, staffed by trained professionals, ensuring personalized support and minimizing customer stress.
This enhances customer satisfaction, builds trust, and helps insurers stand out in an increasingly competitive market. While trained specialists with extensive adjudication experience can help detect fraudulent claims, especially overly inflated medical expenses, one of the big drivers of insurer losses.
Effective Communication
The backbone of exceptional CX is clear and timely communication, which is essential for effective claims management. CX providers can act as the bridge between insurers and their customers, keeping communication channels open and responsive throughout the claims process. They can also communicate vital information that could potentially reduce the number of claims, such as safe driving tips for the summer season and how to safely manage adverse weather conditions.
By delegating communication to outsourced teams, insurers can ease the burden on their internal teams while supporting consistent and personalized interactions with policyholders. It’s a proactive approach to communication that fosters trust and loyalty, which builds customer retention.
Digitalization & Streamlined Processes
Technology is key to driving operational efficiency and enhancing customer satisfaction. Outsourcers often provide access to advanced technology and expertise in automation and AI (artificial intelligence), and can help clients to digitize their workflows and to further streamline their operations, much like itel’s Data Science & Innovation team.
One of the key benefits of digitizing claims processing is the acceleration of the settlement process. By digitizing documentation, automating tasks, and implementing digital workflows, insurers can reduce cycle times and improve efficiency. While digital channels, like chatbots and self-service portals, offer policyholders convenient access to information and support, cutting down wait times and boosting satisfaction levels.
FNOL Efficiency
In the fast-paced world of auto insurance, the complexities of claims management can be daunting. One of the primary tasks we can help you with is First Notice of Loss (FNOL) processing, from assessing whether a claim needs to be filed to gathering supporting evidence and any third-party details to determine fault. By entrusting this process to experienced professionals, insurers can ensure swift and accurate handling of claims. They can minimize errors and hasten resolutions by leveraging the technology and expertise of CX providers who can streamline data collection, verification, and documentation.
Measuring Customer Satisfaction
Customer feedback is crucial for continually refining claims processes and surpassing customer expectations. CX partners play a pivotal role in this regard, capturing and analyzing data, using the latest technology to track key metrics throughout the claims journey. From satisfaction surveys to Net Promoter Scores, outsourcers use various methodologies to measure customer satisfaction accurately. This allows us to identify pain points, and to address issues proactively, while giving clients the flexibility to scale or introduce new channels or workflows, based on consumer feedback.
Resource Optimization
By delegating routine tasks such as data entry, documentation management, and claims processing to outsourced providers, insurers can free up valuable time and resources, enabling them to invest in areas that drive innovation and growth.
Outsourcing can drive significant cost savings and can improve operational agility by tapping into the resources and infrastructure of established CX providers. Greater cost management can be found by centralizing claim-related information, reducing in-house overhead, and by leveraging the cloud-based systems of outsourcers.
How We Can Help
As the summer season brings heightened activity on the roads, you’ll want to partner with a trusted CX provider like itel, who can help you navigate the surge in summer claims.
From enhanced customer service to claims processing, and even fraud detection, we can play a pivotal role in driving operational efficiency, improving customer satisfaction, minimizing losses, and maximizing profitability for insurers.
Learn more about how we can help streamline your auto insurance claims and how we can help you drive sustainable growth for your business. Contact us today.
