Defining the objective: Streamlining and stabilizing operations
If legacy systems and processes remain in use to save money, they can be more expensive to operate because of maintenance fees, opportunity costs, and data deficiencies. For example, claim results depend on how quickly and efficiently a claim is handled, making the transformation imperative not only to impact the end cost, but also how customers view the organization. Ultimately, the bottom line and reputation are impacted by these processes and technologies, and it is critical that the organization be successful in its transformation to streamline and stabilize operations.
An efficient operating system can simplify entire processes. For example, claims can be managed from initial submission through final settlement, using automated processes, advanced analytics, and convenient tracking. Similarly, policies can be underwritten and bound with straight-through processing. The objective should be to seamlessly integrate people, systems, and data from multiple sources. Providing automated workflows for consistency and efficiency, including tracking tools to make sure the processes move smoothly and securely, is paramount to success.
The outcome should enable greater focus on high-value activities such as sales, customer retention, and customer service. It should also enable quick, accurate reporting.
Specifically, streamlining and stabilizing processes while enhancing technology should accomplish the following:
- Better data: Consolidating people, systems, and data from multiple sources into one platform makes it easier and faster to uncover trends between disparate teams and divisions. Centralizing data also results in greater consistency across the organization and eliminates time spent moving from system to system.
- Smarter decisions: Integrating systems to leverage all relevant data drives educated, informed decisions faster — the impact of which becomes even more profound over time. The quicker and easier it is to properly issue insurance and resolve claims, the higher the satisfaction of both customers and employees alike.
- Streamlined process: Providing intuitive mobile forms, automatic alerts, real-time access to data, integration with third-party systems, and instant data validation boosts efficiency and accuracy.
- Wiser use of resources: Prioritize instances that require automatic manual review. This may be routing the most complex claims to seasoned adjusters for investigation and management while routing simple claims to less experienced claims professionals. It can also include rules that escalate underwriting exceptions based upon pre-established rules, allowing underwriters to focus on those accounts requiring additional analysis.
- Reduced financial leakage: Increase automation and reduce cycle time to improve decision-making that helps avoid fines, penalties, and payment inaccuracy.
- Improved customer connections: Customers who feel they have been treated fairly are more likely to remain loyal to your organization. Handling claims efficiently and fairly increases loyalty, as does reducing the customer burden to obtain the insurance policy in the first place.