Insurance companies understand that it costs them at least five times more to get a new customer than to keep the existing one.

The claims process can make or break customers’ experience. Insurers should ensure providing a satisfactory and simplified claims process for customer retention and to further improve new businesses in general.

With the increase of IR 4.0 devices and mobile technologies, insurers can provide tailor-made services to meet different needs of different customers as below:

1. Customer Communication software

Today's customers demand intelligent, smart and personalised claims communication apart from normal printed documents. Insurers must upgrade their existing communication software and systems in line with global demand to increase efficiency for their ultimate settlement decision or denial.

2. Timely Claims Process

Customers expect fast and uncomplicated claims process from start to finish. It should be coupled with accurate and timely information dissemination. All insurers must standardise claims duration to make customers’ experience simple, fast and easy.

3. Reach Customers via Multiple Channels

Young customers increasingly want more electronic communications during claims communication until completion. It should be direct and interactive communication among insurers, brokers and policy holders. This will lead to convenience and speedy response.

Since insurance has become an undeniable element in our lives, insurers must adapt to the demand of current risk management processes and procedures towards efficient claims from the first notice of loss, estimates, appraisals, communication of acceptance or denial and, finally, the ultimate settlement amount and payment disbursements.

It’s not because of the absence of Risk Management ... but Risk Mis-management.

-- BERNAMA

Dr Barathan Muniyandy, a thought leader and risk management practitioner and trainer, is CEO of Handal Group Malaysia – a comprehensive Risk Management & Corporate Intelligence Consulting Group that has been advising business organisations and governments in Asia over the past 25 years.