A featured contribution from Leadership Perspectives: a curated forum reserved for leaders nominated by our subscribers and vetted by the Construction Tech Review Advisory Board.
Head of Automation and Business Analytics
The Next Wave of Claims Management Technology
Tariq Maqsood, the head of automation and business analytics, has worked with Fremtind Insurance for three years. In Fremtind, he, along with the automation developers and analysts, worked to increase automated straight-through processing of insurance claims from 3 per cent to 18 per cent within three years. He is also part of the innovation board in Fremtind, which works to foster an innovation culture within the company. He was also part of the Digital Leadership Community, a network of tech leaders.
How has the claim management sector evolved over the years?
Over the years, the insurance industry has rapidly shifted from manual to technology-centric claims management processes. Technology adoption is country-specific; some still use manual methods but integrated with digital support. The incorporation of advanced AI is aiding in detecting high-risk cases and potential fraud and in claims triage. But many are still dependent on humans for interaction.
Can you tell us about Fremtind's efforts to automate InsurTech processes and the challenges you've encountered?
When it comes to processing, the emphasis is on bypassing the claim handlers for cases with minimal damage. We identify cases where human intervention is necessary, like fire, home, and car accidents and allocate necessary resources. This approach of eliminating manual intervention from straight-through processing has helped us reduce processing time and, in turn, improve customer satisfaction.
Technology has also enabled us to meet our customers' expectations and provide a 24x7 digital experience through our portal.
Various challenges arise in the delivery of digital insurance services. Our company gives attention to fraud detention, cost estimates, and all kinds of functionalities and combines them for the holistic customer journey.
Our portals are up-to-date to secure the products from breaches. Even when challenges remain tricky to surpass, the rewards are higher because we get to deliver a real-time experience to our customers.
Changing customer expectations is ushering in a dynamic approach to claims management. It is critical to be aware of market competition as multinational companies like Tesla are interested in InsurTech.
Structuring data to build analytic models is another challenge faced in claims management. . In the FTP environment, data is an important asset and has to be of high quality. It is crucial to have high-quality data to build high-grade AI models. In the claims management space, having the required data is common, but what's necessary is the core system or the right capability to leverage it to enhance the user experience.
Another challenge is data privacy; we must be crystal clear on the GDPR. The privacy angle is a crucial component in the insurance space. Even though Fremtind is a domestic company, our tech providers are in the international market. So it is essential to determine where the data servers are located.
How do you enhance the value of agents in the workflow and the efficiency of their customer service while maintaining a good policymaker relationship with new technology?
Companies are increasingly hiring third-party administrators to handle claims. Even when many tools are manual, there is a need to introduce analytical tools that could help agents in fraud detention, increase the identification rate and improve customer service.
In the FTP environment, it is crucial to have high-quality data. To leverage AI technology, data monitoring is essential to obtain high-quality real-time models
At Fremtind, we have created a user interface and aligned APIs in the STP environment for our field agents to be able to leverage field services management technology. We try to incorporate both manual and digital channels. By introducing the same technology in both manual and digital environments, our team was able to generate the required output. Connected to this is Fremtind's long-term goal, to deliver an Omni channel experience where the company provides customer services at any stage.
Based on your experience in claims management, could you give our readers some advice on how to grow in this particular space?
Claims management is a field that constantly evolves with technology and customer expectations. Working on the business scope is vital to increase the momentum of your progress and achieve the desired output. Companies should first analyze the compatibility of their IT infrastructure with the AI investment. Setting up a robust IT infrastructure with bespoke solutions for business applications is imperative. The better you understand the position of your system within an IT infrastructure, the more flexibility you can bring in. But above all, the most important driving force is customer expectation. The whole automation process is not about cost reduction but delivering customer satisfaction; investing in technology is imperative.
