Challenges and Barriers to Adoption
Transforming claims is not easy. With the acceptance and implementation of any new
technology or process enhancement, there are always some issues and challenges to
overcome. Here are a few of the barriers for touchless claims adoption.
System Limitations
Many legacy claims management systems do not have the ability to integrate with or take
advantages of these emerging technologies. Deploying AI, virtual inspection software, images
and videos technologies is not cheap. While larger firms typically have larger budgets and
resources to take advantage of new technologies, many smaller organizations do not have
the required IT budget.
Data Management
Data accessibility, data utilization and data quality continue to plague every claims
department. For most organizations, data continues to reside in information silos such as
policy administration systems, claims systems and financial systems. Data also exists in many
forms including structured data, semi-structured data, and unstructured data. The ability to
collect, process, store, analyze and model various types of data is crucial for today's data-
driven technologies.
The successful application of data analytics – and especially artificial intelligence – feed off
huge amounts of claims data.
The ability of organizations to maintain and harness good quality data is critical for actionable
insights, improved decision making, and enhanced customer interactions.
Balancing Personality and Automation
This conclusion was backed up in an article by EY, "How insurers can optimize claims:
automation and humans in the loop." They report: "Now that straight-through
processing is well within reach, more claims departments are asking themselves if there
is risk in entirely removing the human interaction that some customers value. The
personal touch can be especially valuable in the wake of events with high emotional
impact (e.g., car accidents, property damage, personal injury). Just because nearly all
claims can be no-touch, doesn't mean they should be. Insurers should not pass up the
opportunity to provide right-touch service for customers that they rarely interact with".
THE QUEST FOR TOUCHLESS CLAIMS | 3
