Insurance Journal (2nd Quarter 2019)

Guest Contribution
The above calculation is selfexplanatory
as how much cost
insurance companies are incurring on
paper-based claims processing.
Besides costly, it is both time and
labour extensive; coupled with risks
of human errors and process delays
.This additional cost can be easily
turned down with the introduction of
ECF i.e. 'Electronic Claim Files',
which would help to curtail the
average per unit cost on any claim.
Ÿ Electronic Claim Files' or most
commonly known as 'E-Files',
enables to review and respond to
claim documents, claims data and
financials in an electronic format.
Ÿ I t p r o m o t e s p a p e r l e s s
environment, reduce operational cost
ad avoid process delays.
Ÿ By switching to electronic claims
processing, the ultimate beneficiary
will be customer, who will get
handsome price discount along with
e ff i c i e n t a n d p r o m p t c l a i m s
processing.
2. Investment in Technology
With mindful analysis of processes
and elimination of any preventable
cost in association with them, the
Insurance Companies can make
a d e q u a t e s a v i n g s a n d m a k e
investment of same on Information
Technology to deliver quality claims
service. Although, the Insurance
Companies are heading towards
transformation of it's IT related
procedures and operations but still far
behind many other sectors like
banking, pharmaceutical, food etc.
There are many ways, where
technology can pave the ways to
facilitate the customers and provides
support to remain in touch with them
at any time, including at the time of
claim. Some of them are mentioned
below:
Ÿ Direct Chat Services: It is a need
to offer this services, especially in
case of personal lines where
customers are very sensitive, expect
immediate response from their
providers so due care should be taken
to handle them. The provision of this
service will enable the customer to
make any query online with company
at any time without any time
restriction.
Ÿ Mobile Based Application:
Nowadays, mobile based application
are becoming great tool of customer
interaction becoming significant part
of our everyday lives. Most of the
commercial as well as Islamic banks
have already developed and launched
their mobile based user friendly
applications, which facilitates the
customers in providing banking
solution with easy access. The
Insurance companies have yet to
d e v e l o p t h e i r m o b i l e b a s e d
applications and introduction of same
will provide the insurance companies
with more opportunities to interact
with customers and the further
promotion of this sector.
3. Skilled Human Resource:
W h e n t a l k i n g a b o u t q u a l i t y
management of claims, human capital
is one of the core function which
cannot be over looked, as it is one of
the most prominent factor in success
of any organization.
The provision of excellent service
with respect to quality claims
management is heavily dependent on
skilled claims personnel. The claims
p e r s o n n e l s h o u l d b e h i g h l y
Insurance Journal April, May, June 2019
38
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