Touchless auto insurance claims inevitable suggests LexisNexis study
Published: March 29, 2017
Updated: July 24, 2018
Author: Luke Jones
CATEGORY: Car Insurance
A new study has highlighted the challenges and changes facing the auto insurance claims industry in the near future. LexisNexis Risk Solutions has published it’s the Future of Claims: Touchless Claims Study and find insurers are increasingly looking to appeal to customers and reduce prices, while also migrating to touchless claims.
The auto insurance sector faces an uneven future. Technological advancements, such as autonomous vehicles could turn the industry upside down. Insurance companies will have to adapt to survive and will probably have to take a financial hit from reduced claims.
Customers have so much choice that they expect companies to deliver top notch services and support. The evolving auto insurance industry is waking up to putting the consumer first, with customers demanding reduced prices and a change in the claims process.
In the Lexis Nexis study, it was found that from 24 senior insurance executives, 70% believe that automating car insurance claims is a crucial step:
“As technology, coupled with data and analytics, has powered the claims evolution from traditional to fast track, and most recently to virtual handling, we wanted to look ahead to better understand the future of claims handling,” said Bill Brower, vice president, claims, LexisNexis Risk Solutions. “Due to adoption barriers, we recognize this is not something that is going to happen overnight, however, we feel that current technology, coupled with data and analytics, positions the industry to adopt touchless handling as the future of non-complex auto claims.”
Touchless claims will appeal to millennials who understand technology more than previous generations. The idea of self-service and mobile claims will be expanded upon in coming years, and investment in technology will be a component of company growth.
“The trend towards virtual – and eventually touchless – claims is inevitable, but should be approached with the customer experience in mind,” the study explains.