Effective Claims Management: 6 Best Practices for Success
Improve your claims process with expert strategies. Understand how to manage claims effectively for optimal results.
Understand how secure storage of claims documents impacts the insurance industry, ensuring trust and efficiency in claim handling.
Claims documentation is the key to a successful claim that goes through simply. To make sure that happens, you need secure, easy-to-use storage Here we explore the consequences of bad document storage, and how you can have the most efficient storage possible.
For a claim to be successful, it’s important to have all key documentation, these can include:
An insurance claim without documentation is like a bicycle without wheels. It’s not going anywhere.
Collecting paper documents manually takes a huge amount of time. It’s also inefficient. Your key evidence can easily become damaged, lost, or corrupted. It all needs to be correctly filed, backed up, and well organized. All this organization requires time and space– two things that insurance companies often don’t have to spare.
Any documents that are not handed in, incorrectly filled in, misplaced, or damaged slow down the process.
Often the client misses a key document, so the insurer has to wait for that. However, when your company loses a form, invoice, or piece of evidence, it can become a serious issue. Your client is already in a stressful situation, any delay increases their frustration with your business. The claims experience hugely impacts a client’s loyalty to you.
McKinsey reported that 40% of customers who switch insurance companies do so because their policy didn’t provide value. According to the same report, 20% of customers would switch insurance companies if their advisor left. So providing a smooth experience that provides value is key to retaining clients.
In 2023, there were 3,205 data breaches in the USA alone. If we look worldwide, the average cost of a data breach was $ 4.45 million in that same year. Those figures represent what insurance companies risk by not storing claims documents securely.
At n2uitive, all recorded statements are stored on enterprise-grade security systems that are compliant with SOC 2 Type I & II.
Any documentation that is stored on hard drives risks getting lost or corrupted. The same goes for cloud systems that aren’t updated or protected. Losing recorded statements can represent a serious issue if sensitive information is at risk of being leaked. It can also affect your company’s reputation on the market. Losing documents can make you seem unreliable and untrustworthy to both customers and prospective clients.
In March 2024, Fidelity Investments had the personal data of 28,000 customers leaked via a third party. To avoid facing a similar situation, ensure that you use trustworthy providers. The National Association of Insurance Commissioners (NAIC) published "Principles for Effective Cybersecurity: Insurance Regulators Guidance" which can help you.
Managing documents efficiently, and sharing them among all stakeholders who need secure, transparent access is key to having a faster, more secure claims process. It can also help your clients, as your claims processing can become faster by having all your documents in one single, secure place. Clear documentation also improves the accuracy of your insurance decisions, which is important for your reputation.
The insurance industry is also very regulated to protect sensitive information. Your business must comply with all necessary, applicable legislation.
This article on cybersecurity and data privacy in the insurance industry provides a deeper dive.
To protect your claim files, you need to have the correct documentation stored and shared with the necessary parties. Your documentation should show:
To make audits or appeals easier, you should keep all your documents stored together for each case. By doing this, you will be able to find the documentation quickly and easily.
Having secure, easy-to-use storage makes all the difference in meeting the compliance requirements of claims.
Having all your documents online provides you with 5 key benefits:
Moving to online document storage can seem overwhelming. These 3 key steps will help you do it smoothly.
When you analyze different document management systems, you need to look at 5 different areas to ensure that the management software will be used and loved by the whole team.
Give your claims organization the most comprehensive, easy-to-use solution with n2uitive’s document storage and recorded statement lifecycle management (RSLM).
With n2uitive’s RSLM you can record, review, store, share, analyze, and transcribe all your recorded statements. We are fully integrated with Guidewire to make your claims process smoother. We also integrate with Allegis so that you can transcribe statements with a single click.
Discover how we can make your claims documentation more secure, accessible, and fully compliant with a short demo.
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