Natural catastrophes are becoming more frequent
Research suggests the cost and frequency of natural catastrophes has increased dramatically since the 1970s. For many policyholders, the likelihood of being impacted by a disaster is rising, and for insurers, claims surges are set to become more common and more difficult to manage.
In the immediate aftermath of a catastrophe, delivering a frictionless claims experience is vital to retaining customers and avoiding potential lawsuits. Unfortunately, many insurers find themselves overwhelmed by the sudden spike in claims, leading to slower processing and frustrated customers.
DOWNLOAD THE CLAIMS SURGE PREPAREDNESS CHECKLIST
How to know if you’re prepared for a claims surge
To determine whether they are prepared to provide efficient, effective, and timely service to their customers in the event of a claims surge, insurers should ask themselves the following questions:
- Do we have a plan to expand our claims team’s capacity? – Determine whether there are employees within the organization who can be trained to provide additional support to claims handlers in the event of a surge. If not, identify a third-party service provider who can help.
- Are our staff trained to communicate with empathy? – Employees should be prepared to communicate with customers who have experienced a life-changing event, such as the loss of their entire home or business, in a way that demonstrates care.
- Are our customers able to communicate with us through multiple channels? – Leveraging mobile apps, text messaging, live chat, and chatbots for customer communications can help streamline the insurance claim process for both customers and claims handlers.
- Have we prepared, updated, and shared risk management resources? – Sharing blogs, videos, or downloadable resources that help customers understand how to limit or avoid the impact of a catastrophe can help reduce claims volume.
- Are our IT systems ready to handle a sudden increase in activity? – A catastrophe can bring in hundreds if not thousands of claims at once. You will need to ensure your IT systems and IT team are prepared to handle significantly more activity than usual.
- Are our IT systems able to leverage data and technology? – Legacy systems remain commonplace throughout the industry, limiting insurers’ ability to leverage tools like automation or weather data that can drastically improve the speed and ease of claims handling.
- Have we identified customers who could be affected by a catastrophe? – Knowing which of your customers are likely to be impacted by a catastrophewill enable you to proactively reach out in the event of a catastrophe or provide targeted alerts and risk management resources.
- Have we identified staff who could be affected by a catastrophe? – If you have staff that work remotely or commute a long distance, they may also be affected by the event impacting your customers, reducing your ability to respond to a surge effectively.
ReSource Pro Claims Handling
There are many ways to prepare for a claims surge, but the best way is to ensure you have the capability to ramp up quickly, whether that means leveraging other staff within your organization or a third-party service provider.
If you need flexible, cost-effective claims processing support that can step in when you need it most, ReSource Pro can help. We take on all non-core, non-licensed claims activities, so your core adjusters can concentrate on claim resolution and reduce the turnaround time of crucial claim activities. When you partner with ReSource Pro, you benefit from:
- Trained staff ready to handle all non-licensed activities as you see fit
- Transaction-based model, allowing you to pay as you go
- Consistent, integrated service delivery matching your standards and best practices
Visit our Claims Handling page to learn more.
