Page 43 - Insurance Times June 2024

Establish robust feedback mechanisms to collect and For instance, AI and machine learning algorithms can quickly
address customer concerns. analyze and assess the damage through images uploaded
by customers, speeding up the process.
Intermediaries:
Embrace digital technologies to streamline the claim Customer Education - Bridging the Gap:
intimation and processing process. Despite the technological advancements, there exists a

Stay up-to-date on the latest claim settlement knowledge gap among policyholders regarding the nuances
guidelines issued by insurers. of claim settlements. Insurers must invest in educational
programs that inform customers about the importance of
Maintain clear and transparent communication with
timely notifications of claims, proper documentation, and
policyholders throughout the claim settlement process.
the steps involved in the settlement process. This can be
Proactively collect customer feedback and share it with done through online webinars, informational booklets, and
insurers. interactive mobile applications that guide customers
through the claims process. Clients are becoming aware of
Policyholders: different practices followed by insurance companies and
Carefully read and understand the terms and conditions TPA's to their advantage needs proper redressal.
of their policy, especially the claim settlement
provisions. Moreover, educational initiatives should also inform customers
about their rights and the responsibilities of insurers, making
In the event of a loss, promptly inform their insurer and
the process transparent and trustful. Simplifying insurance
cooperate with the claim settlement process.
jargon into layman's terms is a crucial step towards
Provide clear and accurate documentation to support empowering policyholders to make informed decisions.
their claim.
Share their feedback with their insurer and other Data Analytics:
stakeholders to help improve the claim settlement Big data analytics offers a vast potential to revolutionize
process. claim settlements in general insurance. By analyzing large
sets of data, insurers can identify patterns, predict risks, and
Government: streamline claims management processes. Predictive
Continue to introduce reforms to streamline the claim analytics can also help in fraud detection by flagging unusual
settlement process and make it more customer-friendly. claims for further investigation, which in turn protects
Provide support to insurers and intermediaries to adopt genuine customers and maintains market stability. With
digital technologies and improve their operational standardization of claim procedures things are turning
better for the customers. Data-driven insights can enable
efficiency.
insurers to offer personalized claim settlement processes
Increase awareness among policyholders about their
based on the policyholder's history and preferences, thus
rights and responsibilities.
improving the customer journey. Insurers can also use
analytics to assess their claim settlement processes
Enhancing Customer Experience through continually and identify areas of improvement.

Digital Transformation:
Regulatory Developments and Compli-
The insurance industry in India is experiencing a digital
transformation, reshaping the landscape of claim ance:
settlements. The incorporation of mobile applications, self- Recent regulations by IRDAI have been directed towards
service portals, and UPI payment system introduced by Govt. making insurance more inclusive, ensuring fairness in policy
of India have started to make the process more customer- wordings, T&C explicitly mentioned will avoid flimsy claim
friendly. By digitizing claims documentation, (settlement on rejections and expediting the claim settlement process.
video based on apps created by insurance companies) Compliance with these regulations ensures that insurers
notification, and tracking, insurers can significantly reduce operate within a framework that is customer centric and
the turnaround time for claim settlements, thereby fair. Insurers need to stay abreast of regulatory changes and
increasing customer satisfaction. incorporate them into their processes. For example,

40 June 2024 The Insurance Times