Claims administration that results in positive policyholder experiences
Claims as Competitive Advantage: Technology's Role in Customer Retention
Executive Brief
Claims processing is the most critical factor in insurance company profitability and customer retention, serving as insurers' largest cost component and often the only customer touchpoint beyond policy renewal. According to Ernst & Young, 87% of policyholders base retention decisions on their claims experience, prioritizing settlement speed and process transparency. Poor claims handling has severe consequences: Accenture research found that 30% of dissatisfied claimants switched carriers within two years, with another 47% considering it. Insurers face a delicate balance between preventing fraud and maintaining customer satisfaction, as excessive delays or intrusive questioning of legitimate customers risks complaints and churn. However, modern technology offers automated claims processing and adjudication solutions that enable faster, smarter, and more cost-efficient operations while maximizing customer satisfaction, reducing fraud, and optimizing efficiency—all without requiring complete infrastructure overhauls, allowing insurers to protect both profitability and customer relationships in a competitive market.
- Codify the knowledge of your best claims experts to ensure smarter, faster, more profitable claims decisions
- Look for opportunities to make claims decisions more data-driven and connected to areas like underwriting and other business teams
- Unify siloed applications and make their data interoperable across the organization
- Provide more engaging policyholder experiences to increase satisfaction and retention
- Increase the productivity of your claims processing team, enabling them to focus on your most complex claims
- Leverage — not replace — your existing claims processing infrastructure