7 Key Challenges Facing the Insurance Claims Process

The insurance claims process can be slowed down by manual, paper-based filing, leading to delays in workflow, inefficiencies, increased costs, and dissatisfaction among customers and insurers.

Sending lengthy forms to customers and waiting for approvals can quickly clog the system.

Manual data entry increases the risk of human error, including incorrect information, lost paperwork, or incomplete documentation, which can further delay the claims resolution.

So, what other common challenges does the insurance sector face?

• Fragmented systems that lack integration. Claims management systems, underwriting and legal teams often operate independently, making sharing information freely and quickly tricky. Information in one system might not be reflected in another, leading to data discrepancies.

• Lengthy processing times. Communication between customers, adjusters, and other parties often slows down the process. Internal approval processes, especially for large or complex claims, can create a clogged system. Without streamlined workflows, claims get stuck waiting for sign-offs.

• Poor customer experience. A lack of transparency can often leave customers in the dark regarding the status of their claims. The more manual the claims process, the more customers rely on phone calls and emails, which is frustrating and stressful for the claimant.

• High operational costs. Inefficient manual processes mean that insurers often need to employ large teams to handle claims. This increases operational costs as, in some cases, claims need to go through multiple layers of review or approval, further adding to labour costs and processing time.

• Complexity in significant or catastrophic claims. In the event of natural disasters or severe weather events, insurers often face a surge in claims that overwhelms claims capacity.  Without efficient processes, claims can be slow when people need the claims process to move much more quickly.

•  Lack of fraud detection. Insurance fraud is still a massive issue for insurers, but many use outdated methods to detect fraudulent claims.  Without automated claims processing and document fraud detection software, insurers are vulnerable to increased costs and delayed payments for legitimate claims.

• Regulatory compliance issues. Insurers must maintain detailed records on claims processing for regulatory and audit purposes. Lack of claims efficiency can often lead to gaps in the audit trail and, ultimately, failure to comply with regulations.

Automated document processing significantly speeds up the claims process, and cloud-based document storage enables faster document retrieval so all parties involved have instant access to relevant files.

At Chaffinch, our intelligent document processing tool, DocHorizon, provides automated data capture, optical character recognition and data validation to ensure accurate and complete claim information.  

Discover more features of this transformative solution, and talk to us today.

Over 1,000 customers trust us with their document management needs, and we always strive to exceed their expectations.