While most small to medium-sized insurance companies understand that the heart of profit margins lies within sales, they should never make the mistake of underestimating the value of efficient, equitable and streamlined claims processing.
The steps involved in claims processing, while largely standard between companies, can and should be regularly monitored by company management in order to make sure that customers’ needs are being met while company assets are protected to the greatest extent possible.
The best way to manage the process is arguably that of using risk management software that is designed to maximize the efficiency of all aspects of the insurance business, including claims processing. What many companies may not realize is that fast and efficient adjudication of claims often rests upon the accuracy and integrity of data that is captured when a policy is underwritten.
For example, when enrollment information contains errors such as an incorrect or incomplete address for the policyholder, the claims processing procedures can be greatly hampered. Additional information that may be needed can be more difficult to obtain, and forms or payment checks can be lost in the mail.
Additional techniques for streamlining the process include:
-Standardize the procedures that will be followed by staff members for examining new claims with supporting documentation before the data is input into the system.
-Look for features offered by providers of risk management software that will help to maximize efficiency in claims processing, including barcode scanning capabilities and technology to prevent unnecessary duplication of documents.
-Optical Character Recognition (OCR) can also be a valuable component in a risk management software package in that it can save time and reduce the likelihood of errors by reducing the need for information to be manually keyed into the system.
By utilizing management software that follows through with the entire process from enrollment to claims management, it is less likely that crucial information will be omitted and more likely that the claims will be processed quicker and to the customer’s satisfaction. And, as the old adage says, it is usually cheaper to retain existing customers than to recruit new ones.