Efficient claims processing is at the heart of many businesses, from insurance companies to travel agencies. Get it right and you’ll have a streamlined, cost-effective business with happy customers. Get it wrong, and slow, costly working practices will lead to a disappearing budget and disgruntled clients.
Claims management software offers a range of features that speeds up claims processing, reduces errors and enhances the customer experience. An increasing number of businesses are realising the benefits of automating key processes - reduced costs, less time spent on data entry and greater transparency for customers to name a few. But how do you know if claims management software is right for your business? If you spot any of these signs, there’s a good chance it’s worth considering investing in claims management software for your SME.
1. Soaring data entry costs
Companies that rely on employees manually entering client data are likely to see a large slice of their budget rapidly disappear. Processing a claim requires a significant amount of detailed customer data, often collected via multiple forms, meetings or telephone calls. Manually inputting all this data into the company’s computer system is a time-consuming task that often takes highly-qualified employees away from their primary role. All of this costs a business money.
Claims management software can automate key processes allowing their completion efficiently, accurately and without the need for human intervention.
2. A high incidence of errors
A company that relies on manual data entry is vulnerable to human error. The cost of making a mistake can be significant. For example, a customer could lose out on a claim, resulting in poor customer satisfaction and a damaged business reputation. Payment errors, such as misplaced or overdue invoices can also be costly.
Claims management software can automate data entry and eradicate errors. It is also possible to integrate the business’ direct debit system to the software, ensuring invoices are automatically sent at the correct time.
3. Misplaced documents
Many claims require the collection of a large amount of data over a specific period from multiple sources. A company will need to gather client information, documents from various companies and organisations along with details of legal requirements and regulations. Without an efficient document management system in place, it can be easy to misplace or overlook a key document, leading to errors. Locating and retrieving documents can also be a time-consuming task if files are not stored logically.
Claims management software allows users to create a file for each client that keeps all information relating to their case in a single easy-to-access location. This enables agents to respond to customer queries quickly, maintaining high service levels and ensuring the claims process moves forward as efficiently as possible.
4. Data security risks have been identified
GDPR (General Data Protection Regulation) requires all companies that handle personal information to put systems and processes in place to protect it. Failure to comply with GDPR can result in data breaches that may lead to sizable penalties and a loss of business.
If a business has identified vulnerabilities in the way it stores and handles client data, claims management software can be a major step towards GDPR compliance. The software is designed to keep personal data secure, which gives customers and business owners peace of mind.
5. Onboarding new clients takes too long
Signing up new clients is great for business, but if the onboarding process is slow and cumbersome, it can be costly and result in poor customer experience.Claims management software allows swift and straightforward onboarding of new clients with fewer staff members. Clients can self-register and companies can streamline the questionnaire and document submission process. A user-friendly portal that is accessible via a mobile app makes it quick and easy for clients to start their claim.
Choosing the right claims management software
Claims management software can be acquired for an upfront installation and configuration fee. Companies must also purchase an annual or monthly licence to use the software. When choosing a software provider, it's important to consider the following:
- Your unique business needs
- Your budget
- Availability of system support
- Degree of automation possible (how much time will it save?)
- How easy it is to generate management reports
- Availability of training on how to use the software
- Level of training required (how user-friendly is it?)
- Software extension options
- Standard features included
- Ability to customize the software
- Reliability of the company (check client reviews and company accreditations)
Although claims management software will require a financial investment, it's important to bear in mind that this will pay off in terms of long-term cost savings, increased efficiency, reduced errors and enhanced levels of customer satisfaction.
About the Author
Yaakov Smith is the Founding Managing Director of Logican, a firm that has been creating and delivering software solutions that empower businesses to automate their processes for nearly 15 years. An Oxford University graduate, he previously worked for six years as an IT director in a large law firm specialising in personal injury.