For a growing number of businesses, from claims management companies (CMCs) to travel operators and hotels, an effective claims process is essential. Mislaid documents, inexperienced support agents and data entry mistakes are just a few of the potential issues that can lead to poor customer experience.
Furthermore, the potential consequences of errors in claims handling increased in April 2019 (for CMCs at least) when the Financial Conduct Authority (FCA) assumed responsibility for regulating the sector. CMCs must apply to the FCA for authorisation and consumer complaints may escalate to the authority where it is deemed appropriate. As a result, claims management companies are more accountable for the service they provide. These rules could well extend to all companies that handle claims in the future.
So how can businesses make sure their claims management process is the most efficient and effective it can be?
Choose the right claims management software
The right claims management software can transform a business’s claims process. Whether you’re a CMC or operating another type of SME, powerful, feature-rich software, selected with your specific business needs in mind, can speed up the claims process, reducing errors and enhancing the customer experience.
A paper-based system that relies on manual data entry is vulnerable to security breaches, human error, missing documents and a whole host of other potential issues that reduce business efficiencies and customer satisfaction. Select software that is fit for purpose and customisable.
Continually review and reassess
Companies that get claims management right work to continually improve the process as technology, business needs and customer demands evolve. While finding the right claims management software is essential for success, it is the start of the journey, not the end.
The claims industry is continually changing. Until recently, claims for PPI (Personal Protection Insurance) were probably the most common case CMCs faced. Now the deadline has passed for making such complaints, companies are seeing a rise in different types of claim, such as mis-sold mortgages and payday loans. Equally, changes in regulations may occur, such as the requirement to gain authorisation to operate from the FCA. Companies need to move with the times and continually review, assess and adapt their claims management system.
Use claims data to triage cases
Modern claims management software is powerful and generates a huge volume of data. Used wisely, this information can categorise and prioritise cases, ensuring the most complex receive sufficient resources and time to be resolved as swiftly as possible — and that potentially fraudulent claims are identified and addressed quickly.
Utilising data to manage claims effectively protects a business from unnecessary financial losses and boosts the standard of customer service.
Set standards and monitor compliance
Countless CMCs are operating and many more businesses that have a claims handling department for their business. Analyse the competition and identify a USP (Unique Selling Proposition) you can offer. Are you going to offer the fastest response time to queries? Or the most cost-effective solution? Perhaps you have a highly-experienced team who can guarantee to process any type of claim?
Establish a set of company standards and monitor performance to ensure they are consistently met. If you’ve guaranteed a response to all enquiries within 24-hours, make sure you make good on your promise or customers will take their business elsewhere.
A growing number of companies are realising a need for implementing an effective claims management process. Whether your business is devoted to claims handling or must provide this service as part of the wider business, establishing an efficient system is imperative for success. Take the time to find the best software for the company’s requirements and use the data to inform continual improvements. Your efforts will pay off in cost savings, enhanced efficiencies and higher levels of customer satisfaction.